![]() Indeed, that's something another high profile racing game developer has pointed out. On this basis, CSR Racing 2 alone does not justify the NaturalMotion acquisition.ĬSR Racing 2 alone does not justify the NaturalMotion acquisition. In cases such as these, you have to consider the opportunity cost.Ĭertainly, spending $527 million for a game that generates $100 million a year just doesn't add up for a company like Zynga, which is more in need of resurrection - a $250 million a year game - than a dose of antibiotics. The fact is that Zynga spent a lot of money 18 months ago so that's 18 months of opportunity that has been wasted. However, to me that seems to be rather naive, both in terms of taking CSR Racing 2's launch month revenue and projecting it over a year, as well as ignoring what else Zynga could have done with $527 million. ![]() On that basis, and assuming some much smaller revenue figures for NaturalMotion's other mobile games, Survey Monkey concludes that CSR Racing 2 just about justifies Zynga's $527 million price tag. Zynga spent a lot of money 18 months ago so that's 18 months of opportunity that has been wasted. That means it doesn't feature in Zynga's Q2 financials, which run from 1 April to 30 June. Survey Monkey's estimate of racing game revenue in the US To-date, that hasn't been the case, most pertinently because NaturalMotion didn't release any new games until CSR Racing 2 arrived on 30 June. When Zynga spent $527 million in January 2014 buying UK studio NaturalMotion, the expectation was its new games would be the powerhouse of Zynga's future success. What's more important to the chances of Zynga ever being highly profitable again, however, is the success (or otherwise) of two games. Still, the company has $868 million in cash and equivalents so it's not going out of business anytime soon. ![]() In comparison, in Q1, Zynga's loss was $27 million. ![]() The company continued to make a loss, but at $4.5 million it was much smaller than previously. Depending on your point of view, Zynga's recent financials are failing-business-as-usual, or not as bad as they could have been.įY17 Q2 sales were $182 million, down 3% quarter-on-quarter. ![]()
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