Zynga drops 25% of DAUs, cans real-money gaming plans for US


Zynga has been experiencing troubles for some time now and their situation may just be on the way to getting worse, if the figures reported in their most recent earnings statement are any indication.

Zynga has recorded their lowest number of daily active users (DAUs) since the company began keeping records, falling to 39 million DAUs at the end of the quarter. This might seem like an impressive number on its own but Q1 2013 was the company’s previous worst for DAU figures, coming in at 52 million daily users. This represents a 25% loss in users over a single quarter, something which is made worse because Zynga had already been losing users before this point.

Zynga reported revenues of $230 million, posting a loss of $15.8 million for the period. This amounts to a 31% loss of revenue year-on-year.

The company also revealed that they will be dropping their plans for bring real-money gambling games to the States, saying in their filing “While the company continues to evaluate its real money gaming products in the United Kingdom test, Zynga is making the focused choice not to pursue a license for real money gaming in the United States”.

How this quarter’s performance will impact the social gaming company isn’t entirely certain. It’s definitely not looking good for Zynga but there is a chance that they could pull back from the brink. Unfortunately there seems to be a much larger chance that the company will wink out of existence sometime soon.

Source: Ars Technica


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