Sunday, October 7, 2012

Even Zynga isn't the next Zynga

The inherent weakness of Zynga's micro-transaction based revenue model, that I reported on when they went public, is showing its ugly head in ways even the blindest MT advocates can't ignore:

As a recap, I explained the inherent fallacy in Zynga's "squeeze blood from a  stone" model here:

And noted their inherent financial weakness way back when they released pre-IPO numbers here and here:

You can expect to hear a lot of sudden back-peddling among the MT faithful who, for a long time, held Zynga up as the shining example of how the model could be successful.

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