A contraction in daily active users of Zynga's most popular games suggests that its core games revenues are in decline, an analyst firm has claimed.
San Francisco group Cowen & Company claims that key Zynga social games, such as Mafia Wars and FrontierVille, may be reaching an inflection point where growth plateaus and begins to sink.
"Based on revenue data provided by Zynga and DAU data from AppData, it appears to us that both Mafia Wars and FrontierVille started to see [income] declines when their DAUs dipped below the 3-3.5 million range," the group said.
Cowen & Company said that eight of Zynga's top ten grossing games could be accruing fewer sales than before.
The group predicts that Zynga will lower its full-year guidance, albeit slightly, due to the decline.
"We believe that Zynga will likely have to grow [its share] significantly on mobile in order to offset the challenges we see to its Facebook business, which accounted for 85 per cent of bookings in the first quarter of 2012."