5/26/2023 0 Comments Omgpop writedown![]() The percentage of King players who make in-game purchases as a percentage of monthly unique users is 4%, compared to Zynga's steady 2%.īut, King's overdependence on Candy Crush Saga will lead to trouble in the future. On a pure game metric standpoint, King blows Zynga out of the water with Candy Crush's daily active user numbers. King stopped running ads in last year's second quarter, but advertisements still account for a small portion of Zynga's revenue. Zynga and King both offer "freemium" titles that are usually free to play, but offer purchasable in-game rewards or achievements. But the same monetization concerns threaten shares of both companies. When Zynga launched its IPO in 2011, shares were priced at $10 and still dropped 5% by closing. King's double-digit fall on the first day was partly due to the high listing price of $22.50. There's valid reasons to hold off on crowning this King. According to the preliminary IPO paperwork, Candy Crush Saga averaged 93 million daily active users in the fourth quarter. The company has existed since 2003 and has churned out hundreds of games, so the IPO timing was solely based on Candy Crush's popularity.īut, as the first day performance shows, investors have become wary of tech companies with poor monetization models. King has lit up the social gaming sphere in recent years with the meteoric rise of Candy Crush Saga. Zynga had its own rough opening day back in 2011, but had a much smaller fall. King closed Wednesday down nearly 16% and drug social gaming competitor Zynga ( ZNGA) down over 4%. ![]() ![]() ![]() Candy Crush Saga creator King ( KING.DL) tried to strike while the iron was hot, but instead delivered the worst IPO launch this year. ![]()
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