Zynga to Enter the Real Money Poker Market
When it launched, Zynga was quick to make its way to the top of the social networking poker industry and stay there. Now, with the market opening up to new gaming platforms, Zynga has been losing its stronghold. However, Zynga has a solution that it believes will help combat the competition.
Their solution to this worrying competition is real money poker. After all, since the enterprise is already dealing with social poker games, real money poker is sure to bring in more money. Zynga is powering up to take its spot in the international market with its new real money poker games. The real money poker games are set to be available from early 2013.
Bloomberg’s expectation of Zynga this last quarter fell short of expectations when its prediction of $342.1 million was missed. Zynga’s earnings last quarter was around $332.5 million, a number that caused panic as stocks fell to $3.03 per share on Wednesday. A day later, Zynga’s stocks were a bit stronger with $3.17 per share, but were quick to fall again before the day ended.
In the event of the current stock market scenario, Zynga is pinning its hopes on the real money poker application it is planning on launching. For the first time however, the new app would not have to rely on Facebook, as its older applications did. With plans to change the way they make their revenue, Zynga is optimistic about earning more per-user, compared to its existent apps that rely completely on platforms like Facebook.
Recently, on a conference call discussing earnings, CEO of Zynga, Mark Pincus blamed Zynga’s misfortunes last quarter on Facebook. According to Pincus, a recent change in Facebook’s algorithm caused fewer games to show up, which affected Zynga’s player numbers. Pincus said it was the lack of visibility that the algorithm posed that caused Zynga its revenue last quarter.
Now, however, Zynga will make a change. Although, the company accounts for 15% of Facebook’s revenue, Zynga will slowly move out of its dependence on Facebook. The social network giant is currently pursuing other dreams that include the rumored “Facebook mobile.” Although reports are sketchy, Facebook CEO Mark Zuckerberg slammed rumors stating that there are currently no plans to build a phone.
Zynga’s current obsession in real money-poker will not be an easy launch. Unlike its other free games, any online game that uses real money will require a license granted by the government’s regulatory body or respective State’s Gaming Commission. Pincus recently state that, “We have our first products in development and we intend to release them in markets that are regulated and open, subject to our getting licensing. The U.S. is obviously an attractive market, but it’s not open, regulated market.”
Although, generally speaking the United States is a very difficult place to launch any real money platforms, States like Nevada open up lucrative opportunities to those looking to start one. Nevada Gaming Commission is all set to give away license as early as fall this year. Other states however, have a long way to go.
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