Zynga: Profitable With $30 to $40 Million in Revenue

-Zynga Logo-Don’t thing social gaming is a big business? Think again. Zynga, one of the leading social gaming platforms on Facebook and MySpace announced at the end of the year that they were cash flow positive. Today PaidContent quotes Tim Chang of Northwest Venture Partners who says, “they’re making something like $30 million to $40 million per year mostly from people buying Texas Hold ‘Em chips on Facebook.”

Remember that million dollar application I wrote about previously? It looks like Zynga has at least one if not more than one “million dollar application”, possibly even reaching multi-millions. Also extremely popular for the company is YoVille, a large virtual world with over 3 million monthly active users.

It’s clear that social games have experienced a surge in popularity and some companies like Zynga have already figured out a way to monetize that traffic effectively. While it’s challenging to remain one of the top social gaming companies, some games have a high “stickiness factor” such as Texas Hold’em which has been extremely popular since soon after the launch of the Facebook platform.

Sticky games on social networks are a pretty solid investment as they tend to pay out for a long period of time. Mob wars on Facebook is one example of a game that continues to attract users. There are many other social gaming companies that have experience wide spread success. Playfish for example, is the 4th most popular company on Facebook in terms of monthly active users, following right behind Zynga.

Playfish has also been monetizing their games although we don’t have exact figures on how much revenue they are generating. It’s clear that social gaming is here to stay and may continue to be one of the most profitable if not the most profitable segment of social applications.

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Viewing 45 Comments

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    Not a bed game to relive stres from working long hours and not even making enough to pay the bills and barely making enough to suporte the familly. Would be nice if more free chips were given to the plajers so tha they could play longer. What would even be beter if these chips had a value so that a person can only ones fell how it feels to have enogh money to be able to cover all the expenses and have a litle extra to take a nice vacation to onlly ones be stres free. I KNOW THIS IS A BIG DREAM AND MOST OF US DONT LIVE IN FAIRY TALES LIKE A LOT OF THAM DO.
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    iam from England and stated playing zynga poker months ago using there (gift) chips and did well until a friend gave me some of his chips that he had brought unknowing to me from a third party,then the fun started. firstly i was freezing all the time mid hand when i clearly had the winning hand, chips would disappear somtimes during the game and chips that i had won stayed on the table. After a few weeks a warning appeared about taking chips from a third party etc, after that my hands changed completly my friends watched in amazment as full houses,flushes even four of a kinds where been beaten by straights and three of a kind. If thay can do this to someone who did not bye chips from zynga what could thay do to paying clients, PS.i still play with daily lottery chips just to cheese them off and to have the lowest cards on the table constantly.
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    I have stopped playing Zynga. I worked the account to 26,000,000 only to start again at 0. Yes 0. I have since deleted the game from Facebook and my Iphone.
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    Why can't I get into Farmville today when everyone is sending gifts that I cannot accept and I know my crops will be all wilted this happens to many times!!!!!
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    Zynga got lucky that they were one of the first on the facebook and MS scene. They cashed in and rode the wave, but all it takes is one company to make a similar product/game and the trickle of people that are leaving will become a flood. No company can expect to treat their clients/customers like dirt and not be left in the dust.
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    I agree with Deb 100% , all this stuff they say the game can do for ya is a load of horse shit, im tired of being led on beliving one thing them changing the rules to fit there needs and not giving a rats ass about my accounts or tec. problems. who cares if money was stolen from out of your accounts, who cares if ppl hacks in your accounts, who cares if ppl spam you, who cares if ppl rip u off in the game, who cares......I tell u all the trouble i have gone thru with this company trying to retreive moneys stolen from credit cards is insane. I had to contact the Attorney Generals Office and File a Written Complaint and the Practices of Zynga. I am so sick of knowing that all this time i was playing the game being a loyal citzen in Yoville, That someone else could be crooked and evil enough to steal from me, take my money and run. while Zynga has the nerve to say "Prove It". What the Hell, How Can u prove something was taken , when its Virtual and i'm left holding the bill for someone elses theft. NEVER AGIAN WILL I BUY FROM ANY ONLINE GAMES.
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    Zynga is crap. Every game they have is so slow and almost always has issues that they don't fix. Farmville is pretty much unplayable now and has been this way for a month. Yoville is so slow that its frustrating and I have a very good computer so its not me when hundreds apon hundreds are having the same issue. Im tired of the Beta word as an excuse to use when problems occure.Farmville has been out way to long for them to call it Beta. In there definition of Beta they say it means on going developement. Well when they keep adding stuff to games all the time thats where they can keep calling it Beta. Thats the problem too. if they would stop adding crap to every game to a server that it can't handle i rest my case. And people are dumb and keep giving them money for these stupid games and they are just filling there pockets. They changed Tx Hold Em and now its like some crap game with this level mess. Its poker, now its like some teenie booper game not a real poker game. And the pop ups in every game can drive you crazy. Do they think we are stupid that like in Yoville we cant visit our friends for coins without there stupid pop up to remind us. Its that way in every game they have on Facebook. I have put in so many trouble ticket reports to them its not even funny and they do noting but ignore you. It's time to go back to Yahoo, where they use to be...lol I cant imagine that Yahoo let them get away with treating players that way. Maybe thats why they aren't there anymore, I dont know , I do know they are a crap company and need to seriously get some developers and hire people to deal with the amount of trouble tickets they get and respond without some Bot sending you a BS email saying they are fixing it when they really arent.
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    wats up people i tghink ur all gay jkl but yoville is the shit
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    It may be free but people also DO buy things in every game. They make money not only by advertising but by 1,000's and 1,000's of game players buying things in the games. Its not just a free game!!!!
    And im not gay, I have 4 kids. You shouldn't just fling that word around, get some education.
    Zynga is more concerned about making more games, getting that money from players and adding new dumb features to the games, and the added features ruin the game everytime to where it doesn't work anymore. If they would just leave well enough alone it wouldn't be so bad.
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    You know, I've been pretty neutral about this whole Zynga thing for quite a while. I have a level 100 something character in Mafia Wars, and I've probably given them about 15 bucks for GF points early on. Personally, I feel it's a glitchy sort of game, but they are taking steps to try and improve it. Just really tiny ones.

    I've gotten on the forums and bitched about things--most recently I believe it was over the shift to Rackets from Properties--but come on, this is a free game if you want it to be. And be honest, you all want to like it, otherwise you wouldn't be here (unless you're just attracted to internet chum and red-meat).

    Yes, maybe it's got too much on its plate for its size, but I don't think they imagined it would get this large this quickly. I think they really should hire some new people on, if the reports about their profits are true.

    But all this vitriol and hate--I know it's what runs the internet, but come on! What I see is a bunch of people over-reacting about an essentially FREE game. You act like they stole your woman and killed your puppy. If you don't like it, don't play it. Frankly, I still enjoy it for the warty, problematic game that it is.
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    Their are literally millions of people on Facebook and Myspace, so don't use the excuse that Zynga probably didn't think it would take off. They had there ducks in a row knowing what they were up against before they got into the social networks. Do you think for one second that coming from Yahoo that they didnt already know people, and I mean alot of people wouldn't play there games. The owner is a gamer geek. I've done my research , so he knew he would get millions of hits on his games. Thats is an uneducated excuse.
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    Their figure are all BS. All make up by Zgyna management to cheat investors. Who will buy from them??? All know they will steal your chips by blaming you are being hacked.
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    Zynga'd= def. To be royaly fucked by the (Zynga Tools)=i.e. anyone or person who works for this company Zynga is a TOOL. So jog the fuck on Mark and the rest of your Tools!
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    Info on Zygna taken from blake own resume... and why Zynga can't continue

    Zynga

    (Privately Held; 11-50 employees; Entertainment industry)

    With a max of 50 employees, which at most 10 are programmers, how could they possibly develop as well as fix as many games as they have? lol If this ever went public, beware!!
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    They have 350 from my last research of employees they have. Maybe even with that little, for a game company with 50 mil a year coming in you would think they would hire more people to fix there issues.
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    I play zynga for fun. I started with the amount given. I happen to win 350,000 in two days of playing 12 hours a day. Lol (I played at work) The next day I was set to zero. It almost made me stop playing. So i just started with the free chips they give you and I never made it past 250,000. I think the whole thing is to take advantage of people to where they want to start where they left off. they just want you to buy chips.
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    please someone just took me 600 millions, please Zynga do something, i was working for that very hard, you should know that. it's not little, please, and now is something wrong and i just can write here, please answer to me, i took the picture of my profile where is written i have 602 millions and it's updated yesterday and i didn't play for maybe two weeks because of some my personal stuff so i didn't even had Welcome Wagon achievements and now i have it so someone sit down with my account and took me everything, please do something, please answer to me, this is so wrong, you should really do something with it, please :-((((((((((( i was privacy and i have password which is made of many many letters and numbers and nobody but nobody knew and know my password, OMG PLEASE do something Zynga, this is so so wrong :-((((((
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    ull ve lucky if u see them chips ever again hahahahahahaahahah
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    Hey everyone, my name is Blake. I have been an employee of Zynga for three months now. I have nothing but positive things to say about Zynga; and nothing but sincere respect for the individuals who make the operation possible. I got a job with Zynga shortly after graduating from UC Davis (studied Economics).

    I was hired as a contract employee to perform various tasks for the iphone team. I was stoked just to land a gig in this job market - not to mention I had been an avid gamer since duck hunt. Looking back, I guess I have been a social gamer all along.

    What excited me even more was my first day on the job. I walked into an office buzzing with energy and inspiration. I got the vibe that everyone had specific roles to fill for an ultimate goal - and if they could do that, they would be compensated fairly. We all felt very appreciated.

    My initial tasks were somewhat remedial, but I enjoyed doing ANYTHING in the office because of the atmosphere. I also knew that how minor the task may seem was irrelevant. The most important tasks could not be completed without the building blocks. I always tried to exceed expectations and never put my name on something that wasn't my best work. One day, I was asked if I wanted to make a game-demo video for the upcoming release of Scramble Live. Remembering a time during my childhood when Chad (my neighbor) and I would try to write down EVERYTHING you had to do to beat Donkey Kong, I accepted the task. I had already played a LOT of Scramble in preparation for launch, so I had a plethora of ideas to communicate the games features. I finished the video, editing included, in about 4 hours. Most of the shots were just one take. It turned out that the casual, one take, approach fit with Zynga culture. Shortly after the first video, I took up the alias '1 Take Blake.' Truth be told, I've ALWAYS wanted to be involved in the film and entertainment industry. I was able to blend my passion for film making with my addiction to video games. All the while I was getting paid to do what I love!

    Since then, I have made 4 more videos for Zynga - and really feel like they are appreciated. My goal is to make a video for every department of Zynga - really focusing on the team dynamic. I love to include my co-workers in my work, because without them, I would not be doing it. I wake up every day grateful that I am living the dream.

    I aspire to be Zynga's go-to guy for video and other creative media needs. I am proud to say I am a Zynga employee, and also believe that everyone is entitled to their own opinion. I guess it is not abnormal that bad press about companies seem to correlate to their level of success. There will always be haters. I accept that. I have always worked my ass of to reach success while maintaining my integrity. I can sleep at night comfortable with every decision I have ever made. Despite that, I have never gone a week without hearing somebody else's negative energy. 'Blake, you can't do that because..." or "It's impossible to reach THAT level of sucess without sacrificing your morals." I shrug it off. The recent wave of negative press about Zynga - in a way - feels like an accomplishment. I realize that when society does not understand something, they will form speculations. Go ahead everybody, speculate about how Zynga continues to expand; continues to build out new departments and positions (like mine); and to remain profitable. I guess we just figured it out before the rest of you. But please RESPECT our business. We will always respect yours. We will continue to connect the world through games. They are fun as heck, you should try them! And smile.

    Anyone and everyone is encouraged to link up with me online. You can friend/message me on facebook. You can follow me on Twitter (One Take Blake)

    BUT!!! Please do not waste your time sending me Zynga hate mail. It will be deleted/marked as spam immediately. I am open to conversation with any open mind. I know that (deleting the messages right away) might be perceived as close-minded. But I just don't have time to deal with people who have their mind made up on something I don't agree with. I have way too much FUN work to do!

    Mark Pincus - Thank you, from the bottom of my heart, for making this possible. Rather, making it possible for US to make this possible.

    Email me at blake@zynga.com OR 1takeblake@gmail.com

    iPhone Mafia Wars
    Level: 180
    Mafia Size: 168
    Hourly Property Income: $1,352,415
    Attack Power: 2433
    Defese Power: 2581
    Friend Code 7501 4350 66

    I also play YoVille (YoBlake), Guild of Heroes, Scramble, Live Poker, and Vampire Wars. (But I would accept a challenge to ANY Zynga Game!)

    Brutally Honest,

    Blake Loftus Jamieson
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    This response is typical of what I would expect from anyone at Zynga.....Blake, I agree the post above, ur a tool.

    Zynga apps have alot of potential, but their business model almost demands bad customer service because they need only the new and novice players to make money, Your cool job won't last long.....and I sincerely hope you have to delete tons of Zynga hate mail. That's what you get for being a tool and advertising urself.

    Zynga's players are smart, savvy, and almost entirely united in wanting something better.....and it's only natural that the vacuum will be filled.

    So keep making your department videos....TOOL
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    I don't know if your going to ever read this but I am not a hater. I actually really love most of the games. Its the bugs, the issues of things constantly going wrong as Iv'e stated in my other replys in these posts that I can't stand. Their is no excuse in not taking care of the serious issues in these games before adding Halloween features for crying out loud!! . Do you understand that? Farmville has this new mastory thing they started, but yet we have (all players pretty much) keep getting the pop up, "Out Of Sync", and its been going on for over a month.It's actually unplayable right now. Zynga knows of this because people are sending reports to them constantly but yet they just keep concentrating on adding crap to the game to mess it up even more. You can't explain your way out of that. I can honestly tell you Zynga better enjoy there rich pocket filling days because I know Facebook people are getting really sick of this. They will and alot have , delete Zynga apps. Im still trying to give them a chance but my patience are wearing thin.
    As for poker, I know that they are having serious legal issues as well. Taking money for chips, its the same as real gambling on the net and its not allowed in alot of states and if you live in those states its against the law. I belive thats why they started the new gift giving chips. A loop hole. Zynga wants to get there money from players one way or the other. And most of the time the page you get when you first get on for the day to give your 1,000 chips as I get doesnt work so there loop hole isnt working lol Again a technical issue that doesnt get fixed.
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    so ur just another stupid asshole tha tworks for zynga huh blake? find a new job it will be much better for u
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    You really are a tool! Do you not know how to think for yourself and see what is happening. Nice that your in a position where it looks like roses, but get up leave your cubicle, socially interact with real ppl and listen to the ones who might have complaints rather than dismiss them.
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    zynga just sucks at apps; they make money, so what's the point of even attempting a fix. They release games quicker than Microsoft does operating systems. At least MSoft has the decency to address the issues. Zynga just sits on it, ignores customers and pockets the profit. They suck
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    I'm a new player of a Zynga game and I won't play another. It is riddled with bugs that cause blank page loads while at the same to depleting my game source of revenue/points without applying the intended credit for doing so. Page load times are horrible and are frequently unavailable. This is definitely a company taking their fast money while the getting is good before their reputation catches up with them. I would NEVER pay for any game resources with games of this low caliber.
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    Yo music!!
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    Typical response from the Dev in PM:

    Originally Posted by Erzebet

    It's a bit of a micky take though, seeing as I used a lot of my Elders points to regain my old level so that I could have at least a fighting chance against some of the newer Vamps that took a bigger advantage of the 'glitch'.

    **************************************************
    Quote:
    Originally Posted by Mandy
    Yeah it sounds like it's just part of our overall Facebook server issue. New servers are on their way so just hang tight until then!
    **********************************************************************************************
    Originally Posted by Erzebet
    Have you any idea when I'll be hanging tight till? I've said that I have other Apps running and it's getting so that Vamps doesn't have the same 'pull' as it did.

    **********************************************************************************************
    Originally Posted by Mandy
    Possibly sometime next week.

    **********************************************************************************************
    Originally Posted by Erzebet
    I would think I'll be gone then.

    **********************************************************************************************
    Originally Posted by Mandy
    See ya.

    **********************************************************************************************

    I wonder why there is such a high demand on the Customer Service Dept when the people that are there to answer questions have this attitude?
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    The problem with Zynga games.

    Blatant Disregard for Customer Input.

    A bunch of Harvard kids mucking around with coding every freaking week to no avail...I mean c'mon put a couple of monkeys in front of a screen and they would most likely come up with something that contains less errors...I mean Zynga had to really work hard to make the games as un-playable as they are...
    And then to upgrade their games without ....duh!!...making sure their servers could handle it?? Wow...

    Zynga deserves to receive a trophy...
    Their CEO's head on a plate.
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    Michelle (Erzebet) said almost everything.

    That is the way things are. Zynga's answer to problems is censorship on their forums and putting the blame on their customers.

    I personally lost REAL money when they ruined VW and I have uninstalled every single Zynga application. I was a paying customer until I heard from a Zynga employee that I was really exploiting the features of the game. The features they allowed me to use because I PAID FOR IT. A Zynga employee also suggested between the lines that I kinda harassed other players and bullied them. By killing them in a killing game.
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    Zynga in a nutshell is a business that has no, and I mean NONE , ZIP , NADA business sense at all. They have no customer service , they have no want to keep loyal and dedicated , long term clients. There only goal is to attract new people and ignore, shun and discard any one who has played their games for awhile. The only problem with that is the new customers they attract will soon follow in the all the other customers footsteps and realize , that this company cares nothing but their bottom line. Zynga got lucky that they were one of the first on the facebook and MS scene. They cashed in and rode the wave, but all it takes is one company to make a similar product/game and the trickle of people that are leaving will become a flood. No company can expect to treat their clients/customers like dirt and not be left in the dust.
    they allow cheaters, abusers, stalkers, and vile mouthed trash continued use of their game. No matter how many people reported the above mentioned , NOTHING got done. Nothing happens no matter how many non-existent customer service tickets they issue. The only good thing Zynga does and is known for by the players is they have a blatent disregard for anything that is not lining their pockets . Zynga is a company that talks the talk but has never once walked the walk. I like many can't wait for more game apps and developers coming in and putting the old horse known as Zynga out to pasture,
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    Although this company may have a pretty front face, maybe doing a story on the people who are Zyngas social network... US
    We are the customers/consumers/and we PAY their salaries. Yet they offer us nothing but regret, theft, and disapointment. I would be the first to sit down and discuss the companies need for hush tones and lock outs. Too many complaints would make the company look bad.

    This company scams millions... and I for one am tired of being stolen from.

    Thank you
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    Zynga have major problems with their online games. The complaints are way too high for their CS (Customer Shaft) dept to cope with and even one of their own Devs has said in a public forum that their servers cannot cope with their games and that they will be getting new ones 'soon'.

    The most popular games on FB are swamped by racist and sexually abusive people and there is no way to block them from posting comments to your personal wall. Blatantly disgusting names go unreported and unchanged because of the difficulty in doing so - suggestions for a 'Report button' in game have been 'overlooked'.

    Zynga listen to whiners and 'Twilight Tweenies' who complain about attacks in a 'War' game yet disregard the complaints of people that pay for their 'Free game'.

    The business acumen shown by the public face of Zynga is astonishing - astonishing as to how they have not only managed to stay in business, but also how they have managed to make $30 - $40 profit - let alone $30 - $40 Million!

    Although, there are not so many complaints on their forum - Zynga's Moderation tactic is to delete any Posts that question anything that they cannot answer with their generic phrases, lock down threads or topics that ask questions about missing or 'stolen' Elders Points and serve infractions and bans on people that are vocal and put across points of view that they find difficult to field.

    When players are unable to get into their games because of the 'server problem' (not enough of them, remember) it is ignored and the Dev that was posting and fielding at least some of the questions seems conspicuous by her absence in the forum...

    A rant? You bet!

    Zynga take money for services (Elders Points) and then don't fix the game when it's unavailable. Then they blame Facebook and MySpace or attribute their server problems to 'java cache'.

    Disappointed, disappointed, disappointed!
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    Zynga sucks, they higher incompetent programmers that blame their ignorance on FB/MS not to mention their customer service, really? Customer service is non existent. I for one hope the execs of this company ejoy their golden parachutes cuz this plane is going down...fast!
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    Check this out!!... Men that have alot of chips like 5mill or more...get girls to show the nudity for chips!!!!
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    Zynga has continually blamed FaceBook and MySpace for issues with the game apps they produce. Yet most of the other apps have far fewer, if any, issues. Also, go to any Zynga app, and randomly go through the forums for that app, and you will find an abundance of people who are less than thrilled with Zynga, their non-existant "customer service' that they tout, or the fact that they put effort into a game that seems to change whenever Zynga remembers to pay some attention to it. I, for one, will NEVER play another Zynga game. I played 3 of them, and the same lack of coherence or cohesion applied to all of them.
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    Zynga spends more time in R&D and less time (and money) in infastructure - ask anyone playing ANY Zynga game on Facebook in the last 90 days. 12/10/2009
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    facebook have made zynga's reputation goes higher..30 million is a huge money !!
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    Nice InfO. Easy to read Excellent Resource
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    Yes thats why ZYNGA hacked my account for 1.7 billion poker chips because they knew I was selling to the open market.
    They are now hacking peoples accounts while they play and deny any of this is happening, they need to be shut down by a Bureau for being corrupt within the game
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    im playing vanpires war on facebook good game only thing is my rage aint working its letting me atack i win but no exsperence points and 70 thousand i didnt get them this is now day 4 and rage still aint working can you help me im on level 81 and 388 clan memebers coldonedrinks1@hotmail.com please fix my rage so i can fight and get exsperence points theres a bug in the ststem so we need to fix it thanks vince
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    I would just like to say how disgusted i am with Zynga and its new rules set down for there game application Vampire's. They have totally destroyed this game for me plus many other's. I predict this game will close evently because what they have done. Myself and and most of the people i have spoken too are quiting this game and also boycotting other Zynga applications.
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    Of course, if your company refuses to KEEP their games working, once they have made money on them, this income will not last long. There are currently over a half a million dedicated players of Zynga's "My Heroes Ability" that are being completely ignored by the company. Many of the investors reading this article would be unhappy to know that one of the prime placements of their advertising has been completely unviewable by the target audience for as long as four months. Zynga is well known for placing blame on Facebook, even though Facebook has no access or control over Zynga apps, and refuses to keep thei fanbase informed about issues. This is a company htat will not last long.
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    can't believe how many morons would be willing to buy chips for $20, $50, $100 on texas holdem that have no monetary value in real life. all it is is a game
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    EXACTLY!!!!! they are so dum cuz its all FAKE
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    $30-40 Millions? that is a huge of money.

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