Zynga 2013 Annual Report Download - page 19

Table of Contents
It is difficult to consistently anticipate player demand on a large scale, particularly as we develop games in new categories or new markets,
including international markets and mobile platforms. If we do not successfully launch games that attract and retain a significant number of
players and extend the life of our existing games, our market share, brand and financial results will be harmed.
We operate in a new and rapidly changing industry, which makes it difficult to evaluate our business and prospects.
The social game industry, through which we derive substantially all of our revenue, is a new and rapidly evolving industry. The growth of
the social game industry and the level of demand and market acceptance of our games are subject to a high degree of uncertainty. Our future
operating results will depend on numerous factors affecting the social game industry, many of which are beyond our control, including:
Our ability to plan for game development, distribution and promotional activities will be significantly affected by our ability to anticipate
and adapt to relatively rapid changes in the tastes and preferences of our current and potential players. New and different types of entertainment
may increase in popularity at the expense of social games. A decline in the popularity of social games in general, or our games in particular
would harm our business and prospects.
The acquisition of NaturalMotion Limited is significant to us, and the anticipated benefits of the acquisition could be impacted by a number
of risks specific to NaturalMotion’s business, as well as by risks related to the integration process.
On February 11, 2014, we completed our acquisition of NaturalMotion Limited. The process of integrating NaturalMotion’s operations
into our operations could result in unforeseen operating difficulties, absorb significant management attention, and require significant resources
that would otherwise be available for the ongoing development of our existing operations. Particular significant risks and challenges include:
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attract, retain and motivate talented game designers, product managers and engineers;
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develop, sustain and expand games that are fun, interesting and compelling to play;
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develop games that can build upon or become franchise games;
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effectively market new games and enhancements to our existing players and new players;
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minimize the launch delays and cost overruns on new games and game expansions;
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minimize downtime and other technical difficulties; and
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acquire high quality assets, personnel and companies.
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our ability to extend our brand and games to mobile platforms and the timing and success of such mobile game launches;
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continued worldwide growth in the adoption and use of Facebook and other social networks;
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changes in consumer demographics and public tastes and preferences;
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the availability and popularity of other forms of entertainment;
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the worldwide growth of personal computer, broadband Internet and mobile device users, and the rate of any such growth;
• the transition of our players from the web to mobile devices, and our ability to effectively monetize games on mobile devices and
across multiple platforms and devices; and
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general economic conditions, particularly economic conditions adversely affecting discretionary consumer spending.
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lack of employee retention stemming from the acquisition;
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NaturalMotion
’
s games may not succeed or perform as we anticipated;