I reasoned that there is no greater strategy at play by the Zynga geniuses in the war room of their ridiculous company headquarters.
Whenever I find myself thinking this way, the klaxons start going off. I'm basically saying "My mental model of a clearly smart person, surrounded by clearly smart people, who has made more money than I have and raised money from other smart people who have also made more money than I have--is that he's an idiot."
And then we get to:
So here Zynga finds itself, sitting atop a group of popular games and bracing itself for the next Draw Something to come onto the market so it can swallow it up...So the matchup is Zynga against the field, the field being every person in the world who knows how to, and has the will to create a social game.
Another way of looking at this is that Zynga is building a competitive advantage in social game monetization: if you have a given audience, Zynga can do more with it than you can. Meanwhile, giant deals like OMGPOP create a tournament dynamic, where everyone wants to build the next Draw Something. If Zynga is making their raw material cheap while putting their competitive advantage at a relative premium, that's great for their future.
It's also a more solid theory than just assuming that Pincus doesn't know what he's doing.
Whenever I find myself thinking this way, the klaxons start going off. I'm basically saying "My mental model of a clearly smart person, surrounded by clearly smart people, who has made more money than I have and raised money from other smart people who have also made more money than I have--is that he's an idiot."
And then we get to:
So here Zynga finds itself, sitting atop a group of popular games and bracing itself for the next Draw Something to come onto the market so it can swallow it up...So the matchup is Zynga against the field, the field being every person in the world who knows how to, and has the will to create a social game.
Another way of looking at this is that Zynga is building a competitive advantage in social game monetization: if you have a given audience, Zynga can do more with it than you can. Meanwhile, giant deals like OMGPOP create a tournament dynamic, where everyone wants to build the next Draw Something. If Zynga is making their raw material cheap while putting their competitive advantage at a relative premium, that's great for their future.
It's also a more solid theory than just assuming that Pincus doesn't know what he's doing.