Facebook Inc (FB) & Why Zynga Inc (ZNGA)’s Real Money Gambling Could Be a Pipe Dream

Being the key player behind Microsoft Corporation (NASDAQ:MSFT)’s newly unveiled Xbox One, Mattrick was a key influencer of the whole social integration idea. Microsoft Corporation (NASDAQ:MSFT)’s Xbox One will have features such as media streaming and Skype conversations. This, coupled with an internet connection, makes the device score impressively when it comes to gaming experience.

Gamers want good experience both in gaming and non-gaming features. Reviewers are inclined to believe that Sony Corporation (ADR) (NYSE:SNE)’s PS4 will outdo the Xbox One. However, that is an argument that can best be settled when actual sales figures finally grace the public domain. For now, the bottom line remains that Mattrick, from his experience, will be able to enhance gaming experience for Zynga gamers. This could pan out well for Zynga.

As of this writing, Facebook Inc (NASDAQ:FB), is reportedly experimenting with becoming a mobile games publisher. Although 76% of Zynga’s bookings were generated through Facebook Inc (NASDAQ:FB) in the past quarter, the symbiotic relationship between the two seems to be heading south. And with Zynga Inc (NASDAQ:ZNGA) becoming more and more independent, Facebook is looking for new revenue streams to offset Zynga’s progressive pull out.

Through mobile game publishing, Facebook Inc (NASDAQ:FB) seeks to make money while minimizing risk. Going by the report, Facebook will partner with small, independent developers, not the bigwigs. It will focus on distribution and promotion, while developers focus on editing and financing. At the end, Facebook will claim a share of sales without having to fork out millions of dollars.

Conclusion

Apart from Facebook, a host of other mobile game publishers are crawling out of the woodwork. And while Zynga Inc (NASDAQ:ZNGA) struggles to position itself in the mobile segment, notable inroads are being made by smaller competitors. A leader like Mattrick will be instrumental in plugging customer loss and building more loyalty through enhanced customer experience. Notwithstanding, it is still too early to tell. Zynga is a hold.

The article Why Zynga’s Real Money Gambling Could Be a Pipe Dream originally appeared on Fool.com and is written by Lennox Yieke.

Lennox Yieke has no position in any stocks mentioned. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook and Microsoft. Lennox is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.