Zynga to launch its own game service

San Francisco Zynga Inc is launching a new games service that allows users to play on the company's website instead of Facebook, potentially driving traffic away from the world's No 1 social network that is its biggest partner. The service is the online game company's boldest move yet to create a presence outside of Facebook, where it makes 93 per cent of its revenue. Investors sent Zynga's shares up 10 per cent to $14.48. "Zynga is building their own web-based platform, which makes them a bit more independent and creates a brand for them outside of Facebook. But it doesn't really cut the cord with Facebook, and it won't have a dramatic impact on their margins," said Baird Research analyst Colin Sebastian. Zynga's re-designed website, which will come online this month, makes it easier to play games more quickly with access to live chatting and message board features where players can ask for help. Five of Zynga's top games will be on the new Zynga.com, including CastleVille, CityVille and Words with Friends, the company said on Thursday. Zynga chief operating officer John Schappert said in an interview that players can find opponents to play games with whom they are not friends on Facebook. But the so-called Zynga Platform is closely tied to Facebook in other ways: Users still need to log in using their Facebook IDs and sales from virtual goods in games, such as houses or other items, will be traded using Facebook credits, the social website's payment system. "You will still pay Face-book for buying an extra tractor," said Hudson Square analyst Dan Ernst. Facebook, which has 845 million users, keeps 30 per cent of revenue generated from Facebook credits. Zynga executives declined to comment on whether the company would ever sell items on its platform without paying Facebook a cut. Ernst said it might be easier for Zynga to pull in advertising dollars if it attracts a large number of users to its own website. Manuel Bronstein, general manager of Zynga.com, said the new website was not intended to migrate users away from Facebook. It will help users keep their Facebook profiles separate from their gaming habits while bringing Zynga closer to its users, he said. "If they want to play on Facebook, if they play on mobile, if they play on the Web, I want them to be connected to Zynga and it cannot be constrained to one single destination," Bronstein said. Playing games made by Zynga and Electronic Arts is one of the most popular activities for users on Facebook. Zynga's new website will also host games from other companies, which is a new revenue stream. These include Orlando, Florida-based Row Sham Bow, which makes a Facebook game called Woodland Heroes, as well as the San Diego-based company MobScience, which makes the Facebook game Coffee Bar. Ernst said this could help lower Zynga's costs. Zynga spent about $500 million (Dh1.83 billion) last year developing the technology and infrastructure to support hundreds of millions of players in social games. From gulfnews