We may be seeing the beginnings of a lesson as to why it’s not always the best idea to buy your competition outright. Mobile giant Zynga’s game development philosophy has always been, “If you can’ beat ‘em, buy ‘em,” followed by the less welcome “If you can’t buy ‘em, clone ‘em.”
In short, for nearly every game that hits number one on the mobile charts, Zynga will try to buy that company, and if they can’t, they’ll just make an eerily similar version of the game themselves. Most recently, Draw Something developer OMGPOP agreed to a Zynga takeover for the cool sum of $200M. Draw Something was exploding in popularity, and the purchase seemed like a good bet.
This is interesting to see.. Basically, Draw Something was very popular when it first launched, so Zynga jumped in and bought them without hestitation.. The end result of that is that now, a month later, Draw Something has 5 million less users, which still brings them to 10 million active users, but 5 million is a lot of users to lose.