EA: We Don’t Want to Be Zynga

Come June, Facebook (NASDAQ: FB  ) gamers won't have as many titles to choose from. Electronic Arts (NASDAQ: EA  ) is closing Facebook editions of three of its social games: The Sims Social, SimCity Social, and Pet Society.

Some games will remain; notably, titles published by EA subsidiary PopCap Games. Even so, between this and Zynga's (NASDAQ: ZNGA  ) recent move to direct more gamers to its own site, the implication is clear: Facebook isn't the gaming platform it used to be.

Investors shouldn't see this as a reason to sell, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following interview with The Motley Fool's Erin Miller. Gaming has long been an interesting feature of the social network thanks to its partnership with Zynga, but Facebook's future depends entirely on attracting and engaging mobile users. Desktop games are a sidelight, at best, Tim says.

Do you play Facebook games? Do you believe in the company's mobile strategy? Please watch this short video to get Tim's full take, and then leave a comment to let us know whether you'd buy, sell, or short Facebook stock now, and why.

For further analysis of the social network's mobile ambitions, try our newest premium research report, in which we dissect Facebook's expanding empire and tell you what the company is really worth, and whether there are reasons to "like" the stock for your portfolio. Access your report now by clicking here.

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  • Report this Comment On April 20, 2013, at 5:22 AM, ECSwolf wrote:

    Facebook games are not for gamers. First off, they follow the free-to-play business model, with the focus on in-app purchases and micro-transactions. This model is still relatively new, so it is difficult for companies to figure out how to do it correctly with out looking like overly greedy jerks. Secondly, facebook games are incredibly casual, and typically very simple. I think you're correct when they should target the mobile market instead, as many of those titles rarely have the depth to make people want to play them for extended periods of time (especially when many of them are specifically designed for the short bursts that work well with mobile).

    Also, it's important to remember that the mobile gaming market is incredibly saturated. For every Angry Birds success story, thousands of developers are failing.

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9/27/2016 1:24 PM
EA $85.03 Up +1.53 +1.83%
Electronic Arts CAPS Rating: ***
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Facebook CAPS Rating: ***
ZNGA $2.85 Up +0.02 +0.53%
Zynga CAPS Rating: *