Home / Channel / Zynga shares drop 40%: Facebook changes hit hard

Zynga shares drop 40%: Facebook changes hit hard

Slyvia July 26, 2012 Channel, Software & Gaming

Zynga, the maker of online games have experienced a huge drop in share value, showing that they rely on Facebook dramatically. Their shares tanked by 40% yesterday as Facebook made changes to their system to address ‘spamming concerns'.

Zynga's older games got hit hard and the company said the unexpected loss was due to the weaker performance of existing games and changes at Facebook which is favouring the discovery of new games now.

The delayed release of The Ville didn't help the company either. Surprisingly their original hit ‘Draw Something' suffered in the second quarter, with reduced sales.

Zynga CEO Mark Pincus said that the company outlook for the rest of the year is positive as they move forward. They have also developed their own website to promote the games outside of Facebook. The plan is that they will experience more growth this way.

Kitguru says: A tough year ahead we think for Zynga.

Become a Patron!

Tags

Check Also

DLSS 5 NVIDIA

KitGuru Games: DLSS 5 misses the point

It would be hard to argue that NVIDIA’s DLSS technologies haven’t been a net positive to the PC space, with the machine-learning based upscaler successfully translating lower resolution inputs into a final image which is perceivably sharper while hogging fewer resources. Though somewhat more contentious, the next evolution of DLSS came in the form of Frame Generation, using ML in order to generate additional frames for high-refresh rate gaming. Both techniques can have their issues, but generally speaking they’ve allowed for more people to experience higher-end titles at increased frame rates. DLSS 5, however, takes a sharp pivot, with a very different end goal in mind than the performance-boosting versions that came before.

© Copyright 2026, Kitguru.net All Rights Reserved Standard Terms