Farmville is dying
Zynga's stock slumped by 40 percent after the "Farmville" game maker slashed its 2012 outlook for the second time. It is starting to look like there is an exodus of paying customers playing the game.
Shares fell 20 percent and you can pick up a used one for $2.21. In March they were worth $15.91. Facebook shares also slumped. The social notworking site makes a tenth of its revenue from fees paid by Zynga. The game maker gets most of its revenue from titles such as "FarmVille", "FrontierVille", "Zynga Poker", "Mafia Wars" and "CityVille".
Part of the company's problem is that there are a lot more games available on Facebook these days. The company has also been hit by delays in its game release programme. It also has not come up with new hits for mobile devices. Zynga's popular mobile titles such as "Words With Friends" and "Draw Something" generate less revenue and profit for the company.
"The Ville", "ChefVille" and "FarmVille 2", began well, growth stopped when they both hit 7 million daily active users. The company has had several high profil exits including Chief Operating Officer John Schappert and Chief Creative Officer Mike Verdu.