Zynga is moving away from its dependence on Facebook-generated revenues, launching its Zynga Direct strategy to distribute games directly to players rather than via the social networking site.
Chief Executive Mark Pincus said Zynga saw a 95% fall in profits in the last quarter, after Facebook started taking a 30% cut of revenues under a new credits system launched in July.
The San Francisco-based developer also revealed that it is rolling out Zynga Casino and Zynga Bingo. The announcement comes less than 24 hours after Facebook unveiled new software allowing games to be played via mobile devices.
In June, management announced that it would take the company public in a $1 billion initial public offering in September; however, Zynga is now delaying the IPO until December at the earliest due to “rocky stock markets.”
According to reports, the delay is also related to questions the Securities and Exchange Commission has about how Zynga measures its daily and monthly users, as well as its bookings. Zynga uses a financial measure called bookings, which is revenue from the sale of virtual goods that are used in games.