![]() The real test of whether the NaturalMotion deal can be a financial boon for Zynga will be the launch of the next big game in the pipeline, Dawn of Titans. The $125 million annual gross revenue that we estimate for the NaturalMotion division at this point is pretty close to the bottom end of the range that would justify a $527 million valuation. Other NaturalMotion games: $15M annual run rate globally.CSR Racing 2: $110M annual run rate globally (generously assuming revenue doesn’t decline over time).NaturalMotion revenue, based on our estimates: Working backwards from purchase price of $527 million, NaturalMotion should ideally drive at least $130M-$175M per year in revenue (ignoring the time value of money for simplicity’s sake). Here’s one way to think about it: Valuation of gaming companies is frequently based on 3–4x forward revenue. But if NaturalMotion’s next big title, Dawn of Titans, can perform as well as CSR2 has, then the story can change for the better. Thus far, based on our estimates, Zynga’s acquisition of NaturalMotion doesn’t look like it’s paying off from a purely financial standpoint. So, is NaturalMotion finally paying off for Zynga? It even spent a few days enjoying more than 200 thousand daily downloads. Thanks to favorable press coverage, featuring in the app stores, brand-recognition, and cross-promotion, CSR2 was strong out of the gates in terms of downloads in the United States. A month after successful launch, CSR2 download numbers still lead the mobile racing category To find out the answers to those questions, we examined CSR2’s usage and revenue results using insights from SurveyMonkey Intelligence, comparing its performance to other popular mobile racing games including Real Racing 3, Racing Rivals, Asphalt 8: Airborne, Need for Speed No Limits, and the original CSR Racing. ![]() In its review, Polygon claimed “CSR2 obliterates the line between tablet and console graphics.”īut could a visually-impressive racing game keep users engaged and paying once the initial “wow factor” wore off? And if so, could CSR2’s results signal that Zynga’s acquisition of NaturalMotion is finally starting to pay off? Finally last month, CSR Racing 2 (or “CSR2”) launched on mobile devices, prompting high praise for its striking visuals. Investors appeared to endorse the (expensive) move to expand Zynga’s mobile portfolio with polished, “wow factor” games, sending the shares of the company 22% higher.įor the next two years, the NaturalMotion division failed to release any major new games and saw revenues from existing games decline. Led by then-CEO Don Mattrick, Zynga acquired NaturalMotion, the maker of mobile hits like CSR Racing and Clumsy Ninja, for $527 million in early 2014. CSR Racing 2 usage and revenue results: Is NaturalMotion finally paying off for Zynga? ![]()
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