Zynga: Downward Ho?

Electronic Arts has accused Zynga of copying its long running ‘The Sims‘ franchise and thus is taking it to court. This bad news follows not so exciting Q2 results from Zynga. As this chart from statista shows, Zynga has a monetization problem (something that many had suggested during the IPO hype). Zynga’s average monthly revenues per user have been declining for the past year. Zynga’s stunted growth also reflects upon Facebook’s slowing revenue growth figures, due to their deep integration.

Or in the words of Statista

After crunching the numbers, we found that Zynga is still having trouble monetizing its ever-growing user base. Average bookings per monthly unique user are on a downward-slope, having declined year-over-year in each of the past four quarters. If Zynga doesn’t manage to turn this trend around, the company will have trouble justifying the hype that surrounded its IPO last year.

zynga-s-monetization-problem

Image via Statista.com

See the original infographic here.

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