Zynga 2015 Annual Report Download - page 15

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Table of Contents
of new games, stemming declines in our audience size and prudent cost control. However, these efforts may not be sufficient to enable us to improve our operating
results. We recently launched Words on Tour , Empires & Allies , FarmVille: Harvest Swap , Mountain Goat Mountain , Princess Bride Slots and Black Diamond
Casino in 2015. In order to generate profits, new games that we introduce need to generate sufficient bookings and revenues to offset the associated development
and marketing costs. As our player base becomes more heavily concentrated on mobile platforms, our ability to drive traffic to our games through unpaid channels
may become diminished, and the overall cost of marketing our games may increase. We may also encounter difficulty in integrating features on games developed
for mobile platforms that a sufficient number of players will pay for or otherwise sufficiently monetizing mobile games. The success of our games depends, in part,
on unpredictable and volatile factors beyond our control including consumer preferences, competing games, new mobile platforms and the availability of other
entertainment experiences. If our games are not launched on time or do not meet consumer expectations, or they are not brought to market in a timely and effective
manner, our ability to grow revenue and our financial performance will be negatively affected. For example, we recently experienced delays in the introduction of
Looney Tunes Dash! , Dawn of Titans and CSR Racing 2 which had a negative impact on our financial results.
We also recently announced that we will exit the Sports category to focus efforts on four categories: Social Casino, Casual, Action Strategy and Invest
Express. In addition to the market factors noted above, our ability to successfully develop games for mobile platforms and their ability to achieve commercial
success will depend on our ability to:
• effectively market mobile games to our existing web-based players, mobile players and new players without excess cost;
• achieve viral organic growth;
• achieve benefit from player acquisition costs that may materialize in the future;
• adapt to changing player preferences;
• adapt games quickly to make sure they are compatible with, and take advantage of feature sets for new releases of mobile phones and other devices;
• expand and enhance games after their initial release;
• anticipate and effectively respond to the growing number of players switching from web-based to mobile games, the changing mobile landscape and
the interests of players on mobile platforms;
• attract, retain and motivate talented game designers, product managers and engineers who have experience developing games for mobile platforms;
• partner with mobile platforms and obtain featuring opportunities;
• adapt game feature sets for limited bandwidth, processing power and screen size of typical mobile devices;
• minimize launch delays and cost overruns on the development of new games;
• effectively monetize our games;
• maintain a quality social game experience;
• provide a compelling and optimal user experience through existing and developing third party technologies, including third party software and
middleware utilized by our players;
• release games compatible with an increasingly diverse set of mobile devices;
• compete successfully against a large and growing number of existing market participants;
• minimize and quickly resolve bugs or outages; and
• acquire and successfully integrate high quality mobile game assets, personnel or companies.
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