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Zynga, Inc. Message Board

  • trendtn trendtn Dec 17, 2011 10:19 AM Flag

    Virtual (Make Believe) Goods

    znga makes most of its revs from selling virtual goods to farmville users
    imagine the conversation a broker would have with his clients

    znga makes its money selling virtual goods in farmville

    like what

    well if you own a farm in farmville you might need a tractor---so if you pay X znga will sell you a tractor

    its not a real tractor?


    so its a make believe tractor

    uh you get to see it

    so its the picture of a make believe tractor?

    an icon

    so because real people spend real money for icons of make believe tractors you think i should spend real money buying its stock?

    we're underwriting this ipo...we think its an opportunity

    how about i cut you an icon of a check

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    • because real people spend real money for icons.."

      there's your bottomline. when ppl bought up atari systems and nintendo etc, they were getting the actual hardware needed to play virtual games. But ultimately what they were really purchasing was the icon of a plumber jumping over icons of barrels. In 2011, the hardware is ubiquitous so we just go straight to the sale of icons. In the end, it's the gaming experience ppl are paying for and have always paid for.

      and yes, i still appreciate the humor in your post :)

    • Good perception of reality

    • They also make money from sponsors!

      Example:Discover Card gives everyone "That is Qualified" 500 free farmville dollars to get a discover card and pays ZNGA about $25 real cash for every new cardholder!

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