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Has The Social Gaming Burble Burst? Zynga Shares Plummet

This fall and holiday season will see the best collection of smartphones and tablets available ever in the market. Every one of the heavyweight players in the mobile industry are stepping up and giving us, the consumers, products we are more than happy to use on a daily basis. So it comes at not such a surprise but an alarm when social gaming giant Zynga is set to report a loss of 12 to 14 cents a share for the quarter.

We’re talking at a time when the mobile device saturation and overall market population is exploding. Logic would dictate that social gaming would be more profitable than ever considering it’s the most played type of mobile gaming. That’s not the case as it appears the difficulty in social gaming is to follow up once your game makes it big and rises in popularity. People tend to have short attention spans and if something else catches our attention chances are we’re not going to play with the old favorite toy very often.

Zynga is also taking a one-time write off for the company’s acquisition of OMGPOP, makers of Draw Something. It just goes to show you how quickly the market can turn and how much luck is as much a part of success as a good product.

Source: MSN Money