4 ms·

Absolutely not. A key quote from the WSJ article: "That could value the game publisher, which had about $850 million in revenue last year, at roughly the same

Absolutely not. A key quote from the WSJ article: "That could value the game publisher, which had about $850 million in revenue last year, at roughly the same as the two biggest videogame publishers—Electronic Arts Inc. and Activision Blizzard Inc.—combined."

Lewisham 15y ago
This is bonkers, because Activision Blizzard alone are making money hand over fist with WoW. There's no way that Zynga is worth that much.
- nostrademons 15y ago
  The market for casual games is potentially much, much larger than the market for games like WoW. WoW targets college students and young adults who identify as gamers. Farmville targets middle-aged housewives. There are many more of the latter than the former, and they control many more dollars in spending decisions.
  - kayoone 15y ago
    still WoW alone rakes in more money than Zyngas complete Revenue in 2010. Top AAA games generate more than 1 Billion in revenue (GTA Series for example). Dont undererstimate the gaming market.
    - nostrademons 15y ago
      I'm not, but I'm also not underestimating the casual gaming market. To me it seems like a classic disruptive innovation: leverage a new technology to serve the low end of the market better, vastly expanding it, and then slowly ramp up quality until you've eaten the whole market. Stocks tend to be valued based on future earnings more than present earnings - after all, if you know that a company will be making more money next year, it's rational to buy their underpriced stock today and wait for it to appreciate.
    - deleted 15y ago
      [deleted]
    - wildbunny 15y ago
      What you have to remember is that top AAA games take 3+ years to develop, whereas top zenga games take 6 months and generate just as much revenue. The risk factor is far, far lower for zenga, and that makes great financial sense :)
      - kayoone 15y ago
        Sure, but Zynga also needs a couple of games to reach the revenue of a Top selling AAA+ title. Of course its more risk per title but what i am just saying is that there is also alot of money to be made with the classic gamers.
seanalltogether 15y ago
And on the numbers side EA and Act/Blizz brought in $8 Billion in revenue combined.

Lewisham 15y ago

This is bonkers, because Activision Blizzard alone are making money hand over fist with WoW. There's no way that Zynga is worth that much.

nostrademons 15y ago
The market for casual games is potentially much, much larger than the market for games like WoW. WoW targets college students and young adults who identify as gamers. Farmville targets middle-aged housewives. There are many more of the latter than the former, and they control many more dollars in spending decisions.
- kayoone 15y ago
  still WoW alone rakes in more money than Zyngas complete Revenue in 2010. Top AAA games generate more than 1 Billion in revenue (GTA Series for example). Dont undererstimate the gaming market.
  - nostrademons 15y ago
    I'm not, but I'm also not underestimating the casual gaming market. To me it seems like a classic disruptive innovation: leverage a new technology to serve the low end of the market better, vastly expanding it, and then slowly ramp up quality until you've eaten the whole market. Stocks tend to be valued based on future earnings more than present earnings - after all, if you know that a company will be making more money next year, it's rational to buy their underpriced stock today and wait for it to appreciate.
  - deleted 15y ago
    [deleted]
  - wildbunny 15y ago
    What you have to remember is that top AAA games take 3+ years to develop, whereas top zenga games take 6 months and generate just as much revenue. The risk factor is far, far lower for zenga, and that makes great financial sense :)
    - kayoone 15y ago
      Sure, but Zynga also needs a couple of games to reach the revenue of a Top selling AAA+ title. Of course its more risk per title but what i am just saying is that there is also alot of money to be made with the classic gamers.

seanalltogether 15y ago

And on the numbers side EA and Act/Blizz brought in $8 Billion in revenue combined.