Is it better for Zynga to focus on developing new games or optimizing existing successful titles?

Introduction

The trade-off question at hand is whether Zynga should focus on developing new games or optimizing existing successful titles. This scenario involves balancing innovation with refinement, considering the impact on user engagement, revenue streams, and long-term company growth. I'll analyze this trade-off by examining the current product landscape, potential impacts, and key metrics, then design an experiment to inform our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about Zynga's current game portfolio and market position. Could you give me an overview of our top-performing titles and their lifecycle stages?

Why it matters: Helps assess the potential of existing games vs. new opportunities Expected answer: Mix of mature and growing titles across different genres Impact on approach: Would influence resource allocation between optimization and new development

• Business Context: Based on our revenue model, I assume in-app purchases are a significant driver. How does the revenue split look between existing games and new releases in the past year?

Why it matters: Indicates the financial impact of focusing on either strategy Expected answer: Existing games contribute majority of revenue, but new games show promise Impact on approach: Would help balance short-term revenue needs with long-term growth potential

• User Impact: I'm curious about our user acquisition and retention trends. Are we seeing higher churn rates in older games or struggling to attract new users to recent launches?

Why it matters: Identifies whether the focus should be on retaining existing users or attracting new ones Expected answer: Mixed results, with some older games maintaining strong communities Impact on approach: Would guide strategies for user engagement and acquisition in both scenarios

• Technical: Considering our current tech stack, how easily can we implement major updates or new features in existing games compared to building new titles from scratch?

Why it matters: Assesses the technical feasibility and resource requirements for both options Expected answer: Existing games have some technical debt but are manageable Impact on approach: Would influence the cost-benefit analysis of optimization vs. new development

• Resources: What's our current team capacity and structure? Are we staffed more heavily for maintenance or new game development?

Why it matters: Determines our ability to execute on either strategy without significant restructuring Expected answer: Balanced team with flexibility to shift focus Impact on approach: Would impact the timeline and feasibility of implementing either strategy