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Jacob Settlemyre Stephanie Yu. Founding of Zynga. Founded in April 2007 by Mark Pincus. Early Funding & Acquisitions. January 2008 - $10 Million from Union Square Ventures July 2008 - $29 Million from KPCB Bought YoVille April 2009 - #1 Facebook developer, 40 Million active users

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Jacob settlemyre stephanie yu

Jacob Settlemyre

Stephanie Yu

Founding of zynga
Founding of Zynga

  • Founded in April 2007 by Mark Pincus

Early funding acquisitions
Early Funding & Acquisitions

  • January 2008 - $10 Million from Union Square Ventures

  • July 2008 - $29 Million from KPCB

    • Bought YoVille

  • April 2009 - #1 Facebook developer, 40 Million active users

  • June 2009 – Acquired MyMiniLife

    • Launched FarmVille

Early funding acquisitions1
Early Funding & Acquisitions

  • May 2010 – Five-year relationship with Facebook

  • June 2010 – Launched FrontierVille

  • December 2010 – Acquired Newtoy, renamed Zynga with Friends

  • July 1, 2011 – Began trading on NASDAQ

    • 2,000 employees

Business model
Business Model

  • Runs advertisements in their games and website

  • In 2012, they began running Facebook ads and sponsored stories on their website

    • Revenue is split between Facebook and Zynga

Business model cont
Business Model Cont…

  • Many games require energy or in-game currency which may run out very quickly and force users to either wait several hours to keep playing or buy more with real money

    • Zynga credits may be bought in over 28,000 stores

    • Initially this was successful because Zynga was the first company to produce Facebook apps where people could send in-game goods to their friends (e.g. crops, weapons, etc.)

      • Waiting could mean leaving the game for several hours to do something productive and coming back only to find withered crops or a lost mafia attack, so people actually bought energy/in-game currency

      • However...

Even better
Even better!

  • PowerPoint Slides™ provide utility

  • Zynga credits…?


  • Released in 2009

  • Farmville 2 released in 2012

  • To begin, create a customizable avatar

  • Start with an empty farm and earn XP by plowing land, buying plants, harvesting crops, etc.

  • In-game currency includes Farm Coins and Farm Cash

    • Earn farm coins by visiting neighbors or harvesting crops

    • Seeds can be planted, then plants harvested after several minutes/hours, depending on market value of the crop

    • Crops wither 2.5 hours after they are ready to be harvested, but can be unwithered for a price

  • Can send and receive certain crops, livestock, and decorations to and from friends (the “social” aspect of the game

  • Zynga produced multiple games with the exact same model (Cityville, Mafia Wars, Frontier Wars, etc.)

  • Demo: https://www.youtube.com/watch?v=R6jdv-oOYPQ

Zynga with friends
Zynga with Friends



Demo: https://www.youtube.com/watch?v=lMB0kQL3hRQ

Online interaction
Online Interaction

  • Real Life Interaction  Continuous

  • Online Interaction  Discrete

  • Online/Couch Video Games  Synchronized Gameplay

  • Online Social Games  Asynchronous Gameplay

Business success
Business… success?

  • Zynga revolutionized the gaming industry by designing the social aspect of the game (e.g. being able to play with friends and send/receive items on Facebook)

  • However, as more gaming companies began to take on after them, their Farmville-like games became less popular

    • Boring: no actual gameplay, just clicks

    • Repetitive: once you played one, you played them all

    • Expensive: can’t play for longer than a few minutes, but can’t stay off the game very long or risk something (e.g. crops) dying, so must buy energy to decrease wait time

  • When their “With Friends” games (particularly Words with Friends) came out, sales went back up; however, eventually that died down as well

  • People were also getting annoyed with Facebook spam