Zynga 2015 Annual Report Download - page 12

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Table of Contents
Our competitors include:
• Developers for Mobile and Web Games: We face competition from a number of competitors who develop mobile and web games. These competitors,
some of which have significant financial, technical and other resources, greater name recognition and longer operating histories, may create games that
appeal to our players. The mobile game sector specifically is characterized by frequent product introductions, rapidly emerging mobile platforms, new
technologies and new mobile application storefronts. Some of these competitors include DeNA Co. Ltd. (Japan), Electronic Arts Inc., Gameloft SA,
GREE International, Inc., Glu Mobile Inc., King.com Inc., Rovio Mobile Ltd., Supercell Inc., GungHo Online Entertainment, Inc., Kabam and The
Walt Disney Company. Because our games are free to play, we compete primarily on the basis of player experience rather than price. We also expect
new competitors to enter the market and existing competitors to allocate more resources to develop and market competing games and applications.
• Other Game Developers: Our players may also play other games on personal computers and consoles, some of which include social features that
compete with our social games and have community functions where game developers can engage with their players. Some of these competitors
include Activision Blizzard, Inc., Electronic Arts, Riot Games, Valve, Take-Two Interactive, SEGA of America, Inc. and The Walt Disney Company.
• Other Forms of Media and Entertainment: We compete more broadly for the leisure time and attention of our players with providers of other forms of
Internet and mobile entertainment, including social networking, online casual entertainment and music. To the extent existing or potential players
choose to read, watch or listen to online content or streaming video or radio, play interactive video games at home or on their computer or mobile
devices rather than play social games, these content services pose a competitive threat.
Government Regulation
We are subject to a number of foreign and domestic laws and regulations that affect companies conducting business on the Internet and mobile platforms,
many of which are still evolving and could be interpreted in ways that could harm our business. In the United States and internationally, laws relating to the liability
of providers of online services for activities of their users and other third parties are currently being tested by a number of claims, including actions based on
invasion of privacy and other torts, unfair competition, copyright and trademark infringement, and other theories based on the nature and content of the materials
searched, the ads posted, or the content provided by users. Any court ruling or other governmental action that imposes liability on providers of online services for
the activities of their users and other third parties could harm our business. We are potentially subject to a number of foreign and domestic laws and regulations that
affect the offering of certain types of content, such as that which depicts violence, many of which are ill defined, still evolving and could be interpreted in ways that
could harm our business or expose us to liability.
In addition, rising concern about the use of social networking technologies for illegal conduct, such as the unauthorized dissemination of national security
information, money laundering or supporting terrorist activities may in the future produce legislation or other governmental action that could require changes to our
games or restrict or impose additional costs upon the conduct of our business.
Some of our games or features are based upon traditional casino games, such as slots and poker. We have structured and operate these games and features,
including Zynga Poker and Hit It Rich! Slots , with the gambling laws in mind and believe that these games or features do not constitute gambling. There are
ongoing academic, political and regulatory discussions in the United States and other jurisdictions regarding whether social casino applications should be subject to
a higher level or different type of regulation than other social game applications and, if so, what this regulation should include.
We also offer our players various types of sweepstakes, giveaways and promotion opportunities. We are subject to laws in a number of jurisdictions
concerning the operation and offering of such activities, many of
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