Essay about I Have Selected Zynga Inc.

1017 Words Jul 28th, 2015 null Page
I have selected Zynga Inc. for my paper. Zynga is one of the leading providers of social game services. It develops markets and operates social games as live services played on mobile platforms such as iOS and Android and social networking sites such as Facebook. Generally, all of its games are free to play, and it generates revenue through the in-game sale of virtual goods and advertising services. It has developed a number of popular social games including FarmVille, Words With Friends, Zynga Poker and CSR Racing. Consistent with its free-to-play business model, a small portion of its users have historically been payers. Zynga introduced connected strategy model by bringing the opportunity for gaming anywhere anytime among the social network user community.

IBIS has defined Social Network Game Development Industry as companies in this industry develop video games played on a social network platform. This includes websites such as Facebook and smartphone applications. The games developed within this industry are free to play and do not require the user to own any software or console to participate. Companies earn revenue through the sale of virtual goods within a game and also via advertisements. IBIS report states annual revenue for the industry in 2014 was $7.9 billion with 58.4% annual growth during 2009-14. Bargaining power of customers is high. The presence of a large number of gaming and entertainment options adds to bargaining power for customers. Gamers have the…

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