In a recent interview with IndustryGamers Silicon Knights front man Denis Dyack said that that the social games market will crash very hard. Dyack admits that current social gaming trends are adversely affecting the traditional games market, but will eventually see "a rapid contraction."
"It is damaging traditional gaming for sure but... how it's going to work out is anyone's guess," he said to IndustryGamers. "The trend that I see is it's probably going to be one of the biggest bubbles and explosions that our industry's seen in a long time and I think when it crashes it's going to crash very hard. I don't think there's an economy there."
When asked specifically about Zynga - currently valued at upwards of $10 billion - his comments were less sure but just as disparaging:
"I don't know about Zynga – I think that's a big micro, but I think that the amount of venture that's being poured in, in general, that's most of the video game industry investment. As far as I know right now, it's going into pure social gaming. It looks like marketing to me. It doesn't look like real gaming. And maybe it'll change, I don't know. It looks very, very dangerous.
"I think Zynga's valuated more than some traditional publishers right now that have been in the industry for decades. I'm sorry, but I just don't see it. It seems imaginary to me... it doesn't look long term healthy to me," he added.
Dyack went on to say that traditional publishers like Activision are wary of throwing in too heavily into mobile and social game markets:
"I think there are a lot of publishers out there that don't agree with it and they just haven't spoken about it. I don't see Nintendo going into that space, as an example. There are a lot of publishers that I don't see going into that space. And, you know, EA is one of the few that's [embraced social]."