Zynga 2015 Annual Report Download - page 30

Table of Contents
we recently announced that we delayed the launches of Dawn of Titans and CSR Racing 2 from 2015 to 2016. Although launching those games in 2015 may have
offered short-term bookings, we determined that both games need more time in soft launch to achieve their full potential. We also recently announced that we
would exit the Sports category in order to focus fewer game categories that we believe have the highest potential of driving long-term enterprise value. Although
games in the discontinued Sports category may have offered short-term bookings, we determined that they did not contribute meaningfully to the brand and our
strategy in the long-term. In the future, we could make decisions to balance the number of advertisements we show in games based on consumer reaction to
advertising. This type of decision may increase consumer satisfaction and decrease bookings in the short-term. Our decisions may not result in the long-term
benefits that we expect, in which case the success of our games, business and operating results could be harmed.
AnincreasingnumberofindividualsareutilizingdevicesotherthanpersonalcomputerstoaccesstheInternet,andversionsofourgamesdevelopedforthese
devicesmightnotgainwidespreadadoption,ormaynotfunctionasintended.
The number of individuals who access the Internet through devices other than a personal computer, such as smart phones, handheld computers such as net
books and tablets, televisions, video game consoles and set-top box devices, has increased dramatically, and we believe this trend is likely to continue. Certain of
our games or versions of our games may not be compelling to players on such devices. In addition, each device manufacturer or platform provider may establish
unique or restrictive terms and mobile users also frequently change or upgrade their mobile devices. Our business and operating results may be harmed if our
players do not install our games when they change or upgrader their device.
To expand our business, we will need to support a number of alternative devices and technologies. Once developed, we may choose to port or convert a
game into separate versions for alternative devices with different technological requirements. As new devices and new mobile platforms or updates to platforms are
continually being released, we may encounter problems in developing versions of our games for use on these alternative devices and we may need to devote
significant resources to the creation, support and maintenance of such devices and platforms. If we are unable to successfully expand the platforms and devices on
which our games are available, or if the versions of our games that we create for alternative platforms and devices are not compelling to our players, our business
will suffer. For example, in September 2014, we released a new version of our poker offering that was intended to reimagine the game with an entirely new
experience for mobile and replace the original game for mobile applications. Due to playability issues, some players playing on older devices reported that they
were not having a smooth and seamless experience and that they preferred the classic design and play style of the original game. This resulted in us both having to
address the issues impacting Zynga Poker so that it would offer a more optimal player experience and re-launch Zynga Poker Classic , which offers familiar
gameplay that stays true to our traditional poker experience. To have more successful game launches in the future, we will need to hire and retain engineers with
the expertise to develop games and game updates on mobile platforms, better anticipate technical and operational issues in connection with a launch so that they
can be addressed prior to launch and stay true to our consumer-centric approach to decision making to offer optimal player experiences. If we are unsuccessful in
any of these endeavors, or are otherwise unable to keep up with rapidly changing technology, to offer new games and game updates that appeal to our player base
or to monetize our mobile games, our business will suffer.
Iftheuseofmobiledevicesasgameplatformsandtheproliferationofmobiledevicesgenerallydonotincrease,ourbusinesscouldbeadverselyaffected.
We have shifted our business to focus on mobile first games over the last year. The number of people using mobile Internet-enabled devices has increased
dramatically in the past few years and we expect that this trend will continue. However, the mobile market, particularly the market for mobile games is still
emerging and it may not grow as we anticipate. Our future success is substantially dependent upon the continued growth of the market for mobile games. The
mobile market may not continue to grow at historic rates and consumers may not continue
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