Article+Analysis

= **Articles Regarding the Sudden Emergence of Farmville:** =

Positive Outcome: [|'FarmVille' gamemaker Zynga sees dollar signs]

Negative Outcome: [|Warning over Facebook FarmVille game]

= Article Analyses = = =

Zynga’s release of Farmville exploded onto the social networking scene, showing up all over Facebook and Myspace pages. Farmville is the fastest growing online social game on the Internet, with over 50 million players. Mark Pincus, founder and CEO of Zynga has revolutionized the profitability of online social networks. Farmville generates revenue by selling virtual goods that allows gamers to build bigger farms at faster rates. Farmville has an addictive quality on its gamers, where individuals spend hundreds of real cash dollars on virtual farming goods. Since Facebook and Myspace are the perfect platforms for viral marketing, Farmville continues to grow. In fact, Zynga spends millions each year marketing its games on Facebook. Although so much of their revenues are spent on advertising, the company has been profitable every month since September 2007. Since Facebook newsfeed walls are covered in Farmville stories, users are curious to try out the game for themselves. Farmville will continue to grow and generate revenue as more and more users get hooked.

Ardent Farmville players buy Farm Cash from with credit cards and phone contracts. However, many of the young players are not able to make purchases using credit cards. Third parties have taken advantage of this opportunity and provided ways for young people to purchase Farm Cash. Third parties charge more than Farmville for Farm Cash, and as a result, generate revenue from these young gamers. Young gamers are drawn in by these third parties, and as a result, generate huge bills for their parents. Although Farmville enhances the social networking experience, it presents dangers for the younger audience.

Ultimately, Zynga’s Farmville demonstrates the revolutionary way e-businesses can accumulate profit. Zynga used social networking opportunities to create an addicting game where users are willing to pay real cash dollars for virtual goods. Since Zynga does not accrue any production fees, its costs are minimal. Therefore, Zynga transforms online gaming and benefits social networking sites by enhancing user experience. Farmville’s popularity can pose some threats to young and eager gamers, but these problems can be eliminated when parents teach their children Internet safety and rules. Finally, Zynga’s Farmville will continue to grow through its viral social networking exposure, and furthermore continue to increase its profits.


 * Response**: I think it is interesting to see how additive people get to online gaming and even put money into it. Online poker has shown to have great addiction however this is because people are trying to get money out of it. Farmville is simply an entertaining game with no return of monetary value.