Zynga, everyone’s favorite supervillian-esque game developer, has finally hit the wall. After years of riding the proverbial dragon that is casual gamers on Facebook, it looks like that dragon has turned its head around and started biting chunks out of Zynga.
Where does one start on the news of Zynga’s fall? Well first, as of yesterday, shares for the company are $2.95. I’m no economist, but if your shares are worth a bag of chips, panic should probably set it.
As if plummeting shares wasn’t enough, a case is being made against Zynga, accusing it of insider trading. Zynga executives including CEO Marc Pinkus are alleged to have sold $500 million in stock three months before the crash.
At this point, Zynga sounds like a shell of its former self. Well, EA is also suing for copyright infringement. EA alleges that Zynga’s The Ville is a rip off of The Sims Social. EA argues that “Zynga copied the original and distinctive expressive elements of The Sims Social in a clear violation of the U.S. copyright laws.”
While the case sounds subjective, Zynga’s social games have always treaded dangerously close to The Sims territory. This case could go either way but whoever wins, we’ll probably hate the winner.