Zynga 2014 Annual Report Download - page 20

Table of Contents
Our business may be harmed if:
In addition, we have benefited from Facebook’s strong brand recognition and large user base. If Facebook loses its market position or
otherwise falls out of favor with Internet users or other factors cause its user base to stop growing or to shrink, we would need to identify
alternative channels for marketing, promoting and distributing our games, which would consume substantial resources and may not be effective,
or available at all.
Facebook has broad discretion to change and interpret its terms of service and other policies with respect to us and other developers, and
those changes may be unfavorable to us. Facebook may also change its fee structure, add fees associated with access to and use of the Facebook
platform, alter how we are able to advertise on the Facebook platform, change how the personal information of its users is made available to
application developers on the Facebook platform or restrict how Facebook users can share information with friends on their platform or across
platforms other than Facebook. If changes were made that were detrimental to us, our business would be harmed and our operating results would
be adversely affected.
Facebook recently introduced a new version of its developer platform and we must migrate our games to that platform by a certain date.
We have made the decision not to migrate ten games to the new platform, which will impact our web based bookings and revenue in 2015. If we
are unable to timely and effectively migrate the remainder of our games to the new Facebook platform, or develop new games that work with
this platform our players may lose access to games or features or otherwise encounter a negative gaming experience, resulting in reduced
bookings and revenue. In addition, when we do migrate games to the new platform, the new platform may change the way developers can
interact with users or how Facebook users can share information with friends. Any such changes in the future could significantly alter how
players experience or interact within our games, which may harm our business.
If we violate, or if Facebook believes we have violated its terms of service, it could limit or discontinue our access to the platform, which
would harm our business.
We also rely on the continued functionality of the Facebook platform. If our players or potential players are not able to access our games
through this platform or encounter difficulties in doing so, we may lose players, resulting in decreased bookings and revenue. The level of
service provided by Facebook may also impact the purchase, usage and satisfaction with the virtual goods or currency purchased by our players,
adversely affecting our business and profitability. If Facebook experiences interruptions in service or issues with its in-app
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•
Facebook discontinues or limits our access to its platform;
•
Facebook terminates or seeks to terminate our contractual relationship altogether;
• Facebook prohibits us from offering our games on the Facebook platform because it determines that we are a competitor or for other
reasons;
• Facebook modifies its terms of service or other policies, including fees charged to, or other restrictions on, us or other application
developers;
•
Facebook makes operational changes to its platform that we are not able to adapt to our game offerings;
• Facebook changes how the personal information of its users is made available to application developers on the Facebook platform or
is able to be shared by users;
• Facebook modifies or interprets its terms of service or other policies in a manner that impacts our ability to advertise, either for our
games or for third party products or services;
•
Facebook establishes more favorable relationships with one or more of our competitors;
•
Facebook platform or purchasing functionality becomes unavailable for a period of time; or
•
Facebook develops or acquires its own competitive offerings.