Zynga 2015 Annual Report Download - page 22

Table of Contents
Weoperateinanewandrapidlychangingindustry.
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 extend our brand and games to mobile platforms and the timing and success of such mobile game launches;
• continued worldwide growth in the adoption and use of Facebook and other social networks on which our platform relies;
• our ability to maintain the popularity of our games on Facebook, iOS, Android and other platforms;
• 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;
• our ability to maintain technological solutions and employee expertise to rapidly respond to continuous changes in mobile platforms and mobile
devices;
• our ability to maintain technological solutions and employee expertise to rapidly respond to changes in consumer demand for games on new gaming
platforms;
• changes in consumer demographics and public tastes and preferences;
• the availability and popularity of other forms of entertainment;
• the worldwide growth of mobile devices, broadband Internet and personal computer users, and the rate of any such growth; and
• general economic conditions, particularly economic conditions adversely affecting discretionary consumer spending.
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 and relatively rapid changes in technology. 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.
Securitybreaches,computervirusesandcomputerhackingattackscouldharmourbusiness,reputation,brandandoperatingresults.*
Security breaches, computer malware and computer hacking attacks have become more prevalent in our industry, have occurred on our systems in the past
and may occur on our systems in the future. Any security breach caused by hacking, which involves efforts to gain unauthorized access to information or systems,
or to cause intentional malfunctions or loss or corruption of data, software, hardware or other computer equipment, and the inadvertent transmission of computer
viruses could harm our business, financial condition and operating results. We have experienced and will continue to experience hacking attacks of varying degrees
from time to time, including denial-of-service attacks. Because of our prominence in the social game industry, we believe we are a particularly attractive target for
hackers.
In addition, our games involve the storage and transmission of players’ personal information in our facilities and on our equipment, networks and corporate
systems run by us or managed by third-parties including Facebook, Apple, Microsoft, Amazon, and Google. Security breaches of our systems or the systems of
third-parties on whom we rely could expose us to litigation, remediation costs, increased costs for security measures, loss of revenue, damage to our reputation and
potential liability. Our player data, corporate systems, third-party systems and security measures may be breached due to the actions of outside parties, employee
error, malfeasance, a combination of these, or otherwise, and, as a result, an unauthorized party may obtain access to
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