Zynga reports disappointing earnings

Facebook has changed our lives, and few companies have benefited from this development more than Zynga, the company that brought you FarmVille. There are tons of people on Facebook playing annoying (to most of us) but addictive (to some of us) games that clog up our timelines, unless you block them of course.

The problem for Zynga is that it’s getting harder and also much more expensive to develop the new addictive games, and that led to disappointing earnings, which then led to its stock getting crushed. That then led to the further decline of Facebook’s stock as well, making this a very tough week for social media companies.

As gadgets keep evolving and as new social media platforms evolve, companies like Zynga can rocket to success, but then it’s hard to keep up that pace. Consumers are incredibly fickle these days. Just ask phone makers like Blackberry and Nokia. You’re on top of the world, and then Steve Jobs puts out the iPhone and soon your high-flying company is staring into the abyss.

Zynga is trying to avoid that fate. One of their latest games might help them, as Zynga Poker was launched for Facebook and has taken off as the #1 poker app on iOS. The key here, however, is that Zynga is looking past casual gaming. As the feds try to sort out online poker regulations, Zynga is one of many companies that want to take on the most popular poker sites. They want a piece of what could be a very large pie when we finally get uniform poker regulations. They’ll have to battle the big casino companies of course, but this could be a much-needed boost for a bruised social media star.