Bullshit Alert: Zynga threatens Sony and Microsoft

From the land of venture capitalists looking to cash on the latest entertainment fad (social network games , as opposed to last year’s virtual worlds), we get this garbage from Fortune magazine:

With more than 235 million monthly users, Zynga rules the nascent world of free online games played via social networks like Facebook. Real purchases of virtual goods, like tractor fuel in Zynga’s hit game FarmVille, generate over 90% of the company’s revenue, posing a real threat to the gaming businesses of industry giants like Microsoft and Sony [emphasis added], whose consoles depend on players paying cash for games upfront.

A real threat to MS and Sony? Get real. The only threat Zynga poses is to stupid VC people who throw their money down the black holes of me-too imitators. I don’t doubt that Sony and Microsoft would like a piece of that money pie (and they have it, hello Xbox Live and PSN), but social network games threaten the core gaming business? Come on. The economic recovery has already seen core gaming sales recover. And though Farmville’s success will out-profit Modern Warfare 2, over time, let’s not forget how lucrative the hits in AAA development can be:

The game, whose sales surpassed $401 million in the first 24 hours of release, was the fastest-selling entertainment product day-one, says Guinness, which had previously held Grand Theft Auto IV as the record-holder.

What minuscule  segment of the audience do you think plays FB games and also core games? Based on my facebook spam, it’s all housewives and casual gamers that play these games. Sure, it’s more money coming into in the games industry, but what does this have to do with sales of the next Call of Duty or God of War? Nothing. Nothing at all.

Leigh Alexander says it nicer: The News Of Console Gaming’s Death Has Been Greatly Exaggerated.

3 Comments

  • Well said. This just in, news media likes to sensationalize bullcrap to move copy.

    Not that Zynga isn’t making money hand over fist, but to make a statement like that is lazy journalism at best and outright fecal matter at worst.

  • Geekoid wrote:

    The first line of this story is: Bullshit Alert: Zynga threatens Sony and Microsoft.

    Worth, you used the word “bullcrap” instead of “bullshit”. I hereby call you out for being a wet wipe and a pussy. 😯

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