Zynga Seattle could bring Zynga closer with Microsoft and Nintendo

Zynga
Zynga recently posted some job openings on their website referring to an office in Seattle that is yet to exist, meaning that they're planning to expand their reach into the Northwest world of gaming, which the company confirmed. According to the FarmVille creator's website, the company is putting together, "a world-class team of web engineers in Seattle! We are hiring at all levels from associate engineers to architects."

Aside from creating yet another ragtag team of code junkies (which Zynga seems to be on a roll with), what else could Zynga be up to and, more importantly, why Seattle? Well, two of the most popular video game publishers in the world both have stationed their American headquarters in Redmond, Wash.: Nintendo and Microsoft. And considering Zynga is expected to make nearly as much money in its 2-year-old infancy as Nintendo did just four years ago, they probably would like to have a few talks.

If some type of alliance were to take place, the preemptively-named Zynga Seattle could help Nintendo's online presence immensely. And it's not as if is Zynga is above this strategy. As for Microsoft, they seem to already have a relationship with the company on some level. Not to mention it's been rumored that the center of Silicon Valley could take a bite of the social games market in 2011. Zynga is worth entirely too much to consider buying on the whole, but what about subsidizing one studio? It's all that Microsoft would need to help launch some social game marketing for its Halo franchise.

Think about it. With the way things are going, these guys are going to need someone experienced if social game branding is to take off and become profitable. Who better qualified than the company who developed the face of the industry?

Nintendo claims 'no connection between social games and DS games,' someone sounds scared

Number of Nintendo DS games bought by DS players and those that play both DS and social games
In a recent attempt to calm the nerves of investors, Nintendo president Satoru Iwata provided detailed infographics defending his claim that there is no connection between the sales of Nintendo DS games and the proliferation of social games. The infographics seem to prove that social gaming has not affected Nintendo DS game sales negatively, going so far as to prove that those who play social games like Zynga's FarmVille actually buy more Nintendo DS games by a small percentage.

However, the data used to compile this information was gathered only in Tokyo and Osaka. So, what about the American market where it's been discovered that two in every five gamers is a social gamer? While Japan is also witness to a burgeoning social games market, it's nothing compared to that of the U.S. where Zynga, its flagship company, is expected to be worth more than $5 billion.

It can't be said for sure why Nintendo of America didn't conduct a similar study, but we can imagine they've already seen some of the numbers. Though is this really a cause for concern for Nintendo and its investors? Only if the head of the Mushroom Kingdom resists. Why fight it (or be scared, for that matter) when you're in prime position to create impressive cash cows Facebook games with Nintendo character branding? Zynga's move into Seattle could be a blessing in disguise for Nintendo.

Quote of the Moment: 'Nintendo president Iwata is wrong about social games'

Satoru Iwata

    Iwata-san has done an incredible job rebuilding Nintendo over the last few years. He is a great leader of that company, but in this particular case he is wrong. He is mistaken if [he thinks] this is some kind of fad that will go away. Social networks, as a way of powering our game and entertainment choices, is here to stay.

Former Sony Worldwide Studios boss Phil Harrison said this in an interview with IndustryGamers regarding Nintendo president Satoru Iwata's harsh words for social game creators during his Game Developers Conference keynote speech this month. Iwata believes that mobile and social games could diminish "high value" games, or $50 to $60 retail games. How, you ask? The Nintendo commander-in-chief said that social and mobile games are focused more on quantity than quality, amassing and copying software to increase revenue. If Iwata has seen what's in the works for iOS or some recent Facebook games, then his issue appears to be more with price points than anything.

[Via GamesIndustry.biz]

[Image Credit: Nsider 2]

What do you think about Iwata's opinion of social game developers? How do you think Nintendo will fare continuing its retail-centric strategy?