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Jacob Settlemyre Stephanie Yu

Jacob Settlemyre Stephanie Yu. Founding of Zynga. Founded in April 2007 by Mark Pincus. Early Funding & Acquisitions. January 2008 - $10 Million from Union Square Ventures July 2008 - $29 Million from KPCB Bought YoVille April 2009 - #1 Facebook developer, 40 Million active users

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Jacob Settlemyre Stephanie Yu

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  1. Jacob Settlemyre Stephanie Yu

  2. Founding of Zynga • Founded in April 2007 by Mark Pincus

  3. Early Funding & Acquisitions • January 2008 - $10 Million from Union Square Ventures • July 2008 - $29 Million from KPCB • Bought YoVille • April 2009 - #1 Facebook developer, 40 Million active users • June 2009 – Acquired MyMiniLife • Launched FarmVille

  4. Early Funding & Acquisitions • May 2010 – Five-year relationship with Facebook • June 2010 – Launched FrontierVille • December 2010 – Acquired Newtoy, renamed Zynga with Friends • July 1, 2011 – Began trading on NASDAQ • 2,000 employees

  5. Business Model • Runs advertisements in their games and website • In 2012, they began running Facebook ads and sponsored stories on their website • Revenue is split between Facebook and Zynga

  6. Business Model Cont… • Many games require energy or in-game currency which may run out very quickly and force users to either wait several hours to keep playing or buy more with real money • Zynga credits may be bought in over 28,000 stores • Initially this was successful because Zynga was the first company to produce Facebook apps where people could send in-game goods to their friends (e.g. crops, weapons, etc.) • Waiting could mean leaving the game for several hours to do something productive and coming back only to find withered crops or a lost mafia attack, so people actually bought energy/in-game currency • However...

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  9. Even better! • PowerPoint Slides™ provide utility • Zynga credits…?

  10. Farmville • Released in 2009 • Farmville 2 released in 2012 • To begin, create a customizable avatar • Start with an empty farm and earn XP by plowing land, buying plants, harvesting crops, etc. • In-game currency includes Farm Coins and Farm Cash • Earn farm coins by visiting neighbors or harvesting crops • Seeds can be planted, then plants harvested after several minutes/hours, depending on market value of the crop • Crops wither 2.5 hours after they are ready to be harvested, but can be unwithered for a price • Can send and receive certain crops, livestock, and decorations to and from friends (the “social” aspect of the game • Zynga produced multiple games with the exact same model (Cityville, Mafia Wars, Frontier Wars, etc.) • Demo: https://www.youtube.com/watch?v=R6jdv-oOYPQ

  11. Zynga with Friends = + Demo: https://www.youtube.com/watch?v=lMB0kQL3hRQ

  12. Scramble with Friends = +

  13. Hanging with Friends = +

  14. Chess with Friends = +

  15. Social Gaming

  16. Online Interaction • Real Life Interaction  Continuous • Online Interaction  Discrete • Online/Couch Video Games  Synchronized Gameplay • Online Social Games  Asynchronous Gameplay

  17. Online Interaction

  18. Business… success? • Zynga revolutionized the gaming industry by designing the social aspect of the game (e.g. being able to play with friends and send/receive items on Facebook) • However, as more gaming companies began to take on after them, their Farmville-like games became less popular • Boring: no actual gameplay, just clicks • Repetitive: once you played one, you played them all • Expensive: can’t play for longer than a few minutes, but can’t stay off the game very long or risk something (e.g. crops) dying, so must buy energy to decrease wait time • When their “With Friends” games (particularly Words with Friends) came out, sales went back up; however, eventually that died down as well • People were also getting annoyed with Facebook spam

  19. Stock?

  20. Stock?

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