OCA Breaking News – Social game maker Zynga released dismal 2nd quarter earnings late Wednesday.
Revenues for Q2 were $332 million, lower than the expected $343 million. In March, Zynga bought a then hit game, Draw Something, for an undisclosed price assumed to be at $180 million (with a possible extra $30 million).
What’s wrong with Zynga? A lot. Facebook is changing the way games are presented. Players are playing social games for less time. Today’s hit is tomorrow’s lame game. Mobile gaming looks like the next area of growth.
In after-hours trading on Wednesday and early Thursday, Zynga was down 35-41%. All eyes are on the NASDAQ for Zynga and Facebook today and Friday.