Please answer the case questions:

Case: Zynga INC. (2011): Whose Turn Is It?

I. CASE ABSTRACT

Mr. Pincus, founder and Chief Executive Officer (CEO) of Zynga, had built a company around social gaming. This new type of gaming had transformed the gaming industry on multiple levels and across various platforms. Zynga had originally built its games using the Facebook platform and had capitalized on the companys unique method of social networking that had captured audiences around the world. However, this strong reliance on Facebook and changes in consumer gaming practices caused some concern for outside investors and the future of Zynga. As a result of these concerns, by 2012, Zynga had expanded beyond its almost total reliance on the Facebook platform. The company had developed browser- based games that worked both stand-alone on mobile platforms such as Apple iOS and Google Android and as an application on social networking websites such as Facebook, Zynga.com, Google+, and Tenecent.

Zynga was built entirely around the concept of social gaming, defined as the activity or practice of playing an online game on a social media platform.ii It could then be inferred that social gaming took playing video games to a new level. When playing games on platforms such as computers, cell phones, tablets, or other devices, gamers were no longer required to play alone or with a friend physically present. Social gamers were able to play with others, over the Internet, at each other's pace. This was exactly how Zyngas games were played. In some games, like FarmVille, a player could plant, plow and harvest crops without waiting for another player. However, players could help each other farm by sending necessary supplies and fertilizing the friends crops. Players could even send each other gifts, which could either be bought with coins gathered from harvesting crops or by purchasing coins via real money. Social games had been known to generate considerable competition between players.

Decision Date: 2012

FY Sales: $1.1 billions

FY Net Loss: ($440) millions

DISCUSSION QUESTIONS

1. How could Zynga continue to generate new social games to attract the masses?

2. Did Zyngas business model need modifications?

3. Would it be a wise decision to move away from Facebook and towards Zyngas own platform?

4. What was the future of mobile gaming?

5. Where else could Zynga spend its marketing dollars to gain more users and effectively grow its fan base?

6. Were there alternative methods for generating revenues more consistently in the future?

7. How should Zynga spend the approximate $1 billion generated from its IPO?