Zynga loses users at a fast pace

Daily activity on the company's social games is plunging as players move away from the PC to mobile gaming.

By Kim Peterson Jun 12, 2012 6:38PM
Zynga (ZNGA) users are ditching the company -- and the stock is getting killed as a result.

Cowen analyst Doug Creutz said the daily activity on Zynga's social games fell 8.2% in May -- and that was after a 12% decline in April. He says the company is in a user tailspin. Take that 20% decline over two months and annualize it, and "that's a pretty severe rate of decline," he says in the following video.

Post continues below.
Zynga shares fell more than 10% Tuesday to close at $4.98 after Creutz issued his report. Just three months ago, shares were at nearly $14.

Zynga is directly tied to Facebook (FB), since it's the biggest developer of games for use on the social network. Some of Zynga's most successful games on Facebook include "FarmVille" and "CityVille." The games are free to play, but Zynga makes money when users plunk down real dollars to buy in-game items, such as farming equipment.

Both companies are hurting as users transition to mobile. Facebook has had problems getting a solid revenue stream from mobile users -- it doesn't display mobile advertising -- and Zynga has struggled to get users to transition to its mobile games. You can't blame Zynga for trying -- it spent a reported $180 million to buy the once-hot DrawSomething game, but even that game has lost daily users.

Zynga debuted last December at an IPO price of $10 a share.

VIDEO ON MSN MONEY

34Comments
Jun 13, 2012 8:04AM
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I quit playing because they have too many missions to complete and it was eating up all my time. I don't have time to sit and play games all day long every day just to complete the stupid missions. I want to play a game that only takes 10-15 minutes a day, not hours and hours.
Jun 13, 2012 1:21AM
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I have been playing Zynga games on Face Book. but recently stopped. They are greedy and want money  for more sillly things all the time . This means those who can afford it will get farther in the games than those having to play for free items. They have way to many quests too close together. People are always complaining about having trouble in playing the games as they are so hard to get into or gifts don't get to the recievers etc. 

 

Jun 13, 2012 8:10AM
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I have so many quests I cannot complete because once a 'Friend' completes it they don't want to revisit it.  There are so many parts to each quest it is so time consuming and I would rather go on to something else.  I cannot clear out my requests since it always takes me directly to the game instead of allowing me to continue to clear them out.  Zynga is overloaded with all of their money making gimmicks that it is disgusting.
Jun 12, 2012 9:31PM
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All they do is bombard you with pop ups to buy their cash..........customer service sucks and the games have a zillion  problems that go on and on and on without anyone doing a damn thing about it so I hope they flop!!
Jun 12, 2012 10:45PM
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they keep adding missions that can not be completed either takes to much time or they want you to buy zynga money
Jun 13, 2012 12:01AM
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The problem with Zynga is...none of their games work very well...and....you have to have so many friends to be successful in the games, but there is no interaction...just sayin...
Jun 13, 2012 10:12AM
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if the stupid things loaded right and worked all the time people wouldn't leave.  it's always locking up and you get the oops try again or if you click on things to give, it doesn't work. and the fact they keep making it harder and harder to complete tasks unless you spend real money, which I will never do!
Jun 13, 2012 9:24AM
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Maybe if the games worked properly people wouldn't get fed up and quit.
Jun 13, 2012 10:36AM
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zynga games habitually fail to work properly. I left their games after getting too frustrated over bugs in the games. Maybe now they'll begin to listen to the users
Jun 12, 2012 8:56PM
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Zynga and FaceBook are sooo over ..... it will not be long before people are saying "Remember when...."
Jun 13, 2012 11:54AM
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ZINGA is loosing me to bug issues in the program and the very short time frames you have to finish quests.  They forget that we have a life with family, work, and activities away from the computer.  I am tired of almost completing the cooking quests in Cafe World and all of the sudden they are gone so what ever i did just went to waste.  For a free game they are not user friendly. 
Jun 12, 2012 10:59PM
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THE BIGGEST REASON  FOR THEM LOSEING IS NOT FIXING PROBLEMS WITH THE GAMES LIKE GIFTING ISSUE  FREEZEING  I MYSELF  HAVE NOT RECIVED NONE OF MY REQUESTS FOR A MONTH NOW  AND HAVE ASKED FOR IT TO BE FIXED  AND GET SAME ANSWER OVER AND OVER  IF THEY WOULD FIX THESE THINGS THEN THEY WOULD  NOT LOSE PLAYERS IM THINKING OF  LEAVEING YOVILLE  RIGHT NOW IF THEY DONT FIX MY GAME ISSUE  
Jun 12, 2012 8:32PM
Jun 13, 2012 2:29PM
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They want to blame Zynga's problems on the transition to  mobile.  You only have to read the posts here to see what the real issue is. Too many people are fed up with all the baloney you have to go through to try and play their games.  I once played Frontierville, Farmville and others.  I had all the same issues as these others, plus I felt there was a huge BORING factor to them.  Too many quests you had to repeat too many times for what?  The reward was rarely worth the time and effort you put into it.  These are GAMES, not work.  They are supposed to be fun and hopefully a break from the stress of busy days.  The games have become a source of stress in themselves.  That's no way to play Zynga!!  Wise up!! 
Jun 13, 2012 10:24AM
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I have had problems with their games for months. They did help me through support-but now guess what they have given me all the help they can. Duh-keep helping till problems are solved?
Jun 13, 2012 12:28PM
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I like some of the zynga games but I get sick and tired of them trying to force me to run 6 or 7 or whatever farms leave me alone let me choose which ones I want to run.
Jun 13, 2012 1:54PM
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I like Zynga games, in general, but they have made the games more and more complicated, requiring you to spend more time playing each. I liked it better when you could spent a little time in multiple games every day and accomplish something. The increasing amount of time the games required is why I stopped playing.

 

People who have jobs and other things to do are more likely to spend money (because they have it to spend). Zynga is catering to people w/o jobs who have all day to play games. They don't get it.

Jun 13, 2012 1:52PM
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Lose Facebook, Lose Zynga, No Mafia Wars, no Farmville and you will be much happer and even perhaps have a life.

Jun 13, 2012 2:54PM
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Zynga Games: Too many bugs, too many annoying, intrusive, repetitive quests. feels too much like work--except they want YOU to pay THEM for the privilege. I quit a year ago.
Jun 13, 2012 3:42PM
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if zynga would fix the games so they work properly instead of hanging up all the time maybe folks would keep playing and more people would play them. of course no one wants to play games that dont work properly.  i too agree....some of us work and have families and cannot play games everyday and keep up with everything u have to do to complete a level or build something etc....make the games simple again and you will see more users playing!
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