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Zynga, Inc. Message Board

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  • sjcheetah sjcheetah Nov 7, 2012 8:02 PM Flag

    farmville 2 - a hit

    even if you take 200 k/annum (very high usually its between 100 k to 150 k ) salary for 50 people for 1 year the development cost will come to $10 mill at high end . considering farmville 2 is generating between $20mill-$30 mill a month so its already in profit . the development cost is already part of this years results so revenue goes towards profits.

    the key point is while zynga is growning in mobile ( up from 6 % q3 fy11 to 20% in q3 fy 12 ) are web based social game still viable and has a audience and looks like answer is yes. something to consider and not ignore while being short sighted.

    one last point zynga has absorbed most of the cost this year ( sock option, z cloud , write-offs ) so any additional revenue will affect the gross margin and eps positively next year.

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