Michael Pachter, who is an analyst watching the video game industry for the firm Wedbush Securities, has stated that Zynga, the biggest social games developer in the world, will launch a number of new video games and will rebound during the second half of the current fiscal year.
Recently, the titles that Zynga
relies on have seen less players engaged than usual and the share price for the company has been in decline since it has introduced its Initial Public Offering in late 2011, going under half of the launch price.
The analyst says that Zynga is currently funneling more resources to its core titles and that this is the key to a rebound in the long term, powered by both new and returning players.
Michael Pachter added, “We disagree and believe that the majority of gamers who discontinue playing Zynga titles are likely to be non-payers, with payers spending more as they make a greater investment of time in each game.”
Research shows that the average player of Facebook games who actually spends money does so after about 6 to 9 months and that means that Zynga
can still create revenue even if its titles are no longer gaining new players.
The Zynga fortunes have also been affected by the recent IPO of Facebook and the company has recently launched an initiative designed to separate, in part, its games from the social platform.
Zynga has managed to secure the services of such well-known video game designers as Soren Johnson, a former leader of development for the Civilization series, and Brian Reynolds, the man who created Alpha Centauri.
So far they have failed to deliver video games that have a social aspect while also drawing the attention of the core gaming population, which tends to mostly engage with console and PC titles.