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Electronic Arts to Shutter Three Games on Facebook (EA, FB, ZNGA)

Game developing Company, Electronic Arts Inc. (NASDAQ: EA) said that it will shut down three social online games on Facebook Inc. (NASDAQ: FB) as the company just like any other game creator is witnessing dwindling users/gamers base on the social networking giant’s platform.

The company said that it will shutter Sims Social, Pet Society and SimCity Social.

Commenting over the reason behind pulling back of three games, Electronic Arts said in its blog, “After millions of people initially logged in to play these games, the number of players and amount of activity has fallen off.  For people who have seen other recent shutdowns of social games, perhaps this is not surprising.”

However, some of its popular titles such as Solitaire Blitz and Bejeweled Blitz will be still available even as the company looks to unveil its much-anticipated game “Plants Vs Zombies: Adventures”.

The decision to pull out three games come just after another social game provider Zynga Inc. (NASDAQ: ZNGA) announced earlier this year that it will shutter unpopular titles like City Ville 2, the Friend Game and Party Friends.

Earlier in 2012, Zynga Inc shuttered 13 games that included PetVille, Monotopia, Mojitimo, World Scramble Challenge, Mafia Wars 2, Shakedown, ForestVille, Treasure Isle, Fishville and Vampire Wars.

Lately, both Electronic Arts and Zynga have been witnessing sharp fall in the demand for their games on social networking giant’s platform. Both Zynga and to some extent Electronic Arts’ business model, in which users could play free games on FB and were enticed to buy extra features, hasn’t proved lucrative as both companies suffered dwindling returns.

When Zynga burst into the scene three year back, the social gaming industry was in its nascent stage, and it saw it users base grow by astonishing pace; however, during the course of time it started to feel the pressure on top and bottom line as the competition intensified, forcing the game creator to slash costs, shutter offices and cut its workforce. Electronic Arts also went through the same case.

On Monday, shares of Zynga Inc tumbled 5.85% while shares of Electronic Arts fell 3.81% in regular trading hours.

 

 

 


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