Home » Stocks » Bear Case Scenario for Zynga. Is there a trap door somewhere? $ZNGA

Bear Case Scenario for Zynga. Is there a trap door somewhere? $ZNGA

Zynga is big but is it big enough. Wildly popular the competition will want to knock heads. Popular games will be copied. New games will be developed causing an arms race. Development spending will skyrocket.

Large social media platforms will want exclusives to differentiate themselves from the others. Zynga will need to make deals and create partnerships. Other platforms will spurn them just to reduce their reach and play havoc with economies of scale.

As game technology advances you will not need to be a big shop. Indie game development will dominate and kill the big factory. It happened in movies, television and publishing. Why not in games?

George Gutowski writes from a caveat emptor perspective.

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