Zynga is stepping on old establishment toes. Zynga plays such a dominant role in the industry that old-media companies like Disney are feeling the burn when it comes to online social gaming. Though they have their own online games, they are missing out on vital market share, that they probably see as something that should be theirs. Here is some further insight on Disney’s frustrations.
Disney Missing the $14B Games Business It Should Have
Despite recent challenges, mobile and social game-maker Zynga still is valued around $14 billion. Its games like FarmVille and Mafia Wars remain the recognizable face of the growing games industry on Facebook. The company has more than 232 million monthly users. This is undoubtedly frustrating to much larger companies that would like to see their own mobile and social game businesses yield the same rewards. Disney(NYSE:DIS) is a perfect example.The company has spent significant sums to secure a place in the social/mobile space during the past 18 months. While it spent undisclosed sums on HTML 5 technology-developer Rocket Pack in May and iPhone game maker Tapulous in July 2010, it also made a buy with an actual number attached — $563 million — on Facebook and mobile game studio Playdom that same month. more »