Monday 29 October 2012

Zynga: How do they make their money?

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Zynga games are supported by direct credit card payments and  business partnerships. The company develops games for social networking sites such as Facebook which are free to play, Android and also mobile platforms such as Apple IOS. A core feature to many of their games involve the gamer to resolve/become immersed in gaining "energy" to allow them to reach a final mission/goal, maybe by the help of other players' interaction can only then, they continue, or through purchasing ad-on features/extra components to aid them to carry on, through micro-transactions that Zynga generate the majority of their money from. Running out of "energy" in the games is a limiting factor for the players and this is were Zynga's business support mechanisms take advantage.  Players can accept credit card offers, take surveys or buy services from Zynga's partners in order to obtain game credits. This in turn allows the player to become a holder of premium funds that can either directly helpful or be exchanged for the vital aid/ components to complete the "mission" of the game. However these game credits can also be purchased through direct cedit card payments or microtransactions through Paypal. The fee for game credits that can be bought in the game are $5.00 in exchange for 21 game credits.
Also advertising sponsorships are sold by Zynga and in February of this year teamed up with Hasbro to create products based on Zynga brands which we be available to purchase in the upcoming months to winter. Zynga also started running sponsored stories and Facebook adverts on their website. This revenue will be split between Facebook and Zynga themselves. 

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