14 DAY TRIAL // Analysis firm Wedbush Morgan has suggested that the social games oriented company Zynga will be able to create more successful titles in the coming year and continue to attract gamers and increase revenue.
Recently, Zynga has reported better than expected financial results, although compensation paid to employees after it went public meant that it reported an overall loss, and the analysis firm believes that it will continue to improve its share price as it launches new video games linked to Facebook and its traditional formula.
The analyst believes that “having true game people in charge of its operations will position it to execute well on its business plan.”
Pachter believes that the current revenue reported by Zynga can double by 2013 and that the hiring of a number of experienced video game executives and developers from companies like Electronic Arts might mean that the company plans to create more traditional games.
He added, “We do believe that Zynga could leverage its large base of free-to-play poker players to drive traffic to gambling sites, and believe that there is a meaningful revenue opportunity; however, we don't think the opportunity is as large as many have estimated.”
Zynga is intrinsically linked to Facebook, with 12 percent of the social platform’s revenue coming from video games from the developer.
Zynga has recently stated that it could try and create titles that tackle a larger array of platforms, which might mean a move to the Xbox Live service from Microsoft and the PlayStation Network from Sony.
The Chief Operations Officer of the company also talked about the possibility of creating experiences aimed at the hardcore gaming crowd, although it has not offered any details.
Zynga faces increasing competition from traditional publishers like Activision Blizzard and Electronic Arts, who are either already active when it comes to Facebook gaming or ready to consider the possibilities that it can offer.