In making income the two companies differ. Glu generates their income from the sales of the games to individuals who download from digital storefronts like Google Play Store. On the other hand, Zynga does not generate income from the sale of the game, but they provide the games for free. Glue also provides or creates games using third party licenses like Robocop while Zynga creates the game using their license only. Glu is concerned more with the partnership in order to make sales and creation of games. Zynga does not work with partners in bringing up new games. Zynga has expanded his market due to investment on brand, people, and infrastructure but Glue tries to use third party and partnership in production. The similarity between the two companies is that they provide games to mobile users regardless of the location (Form 10-K, 2014).
In the 2013 Form 10-K, Zynga includes the SEC’s comments which are related to revenue recognition in their 2014 Form 10-K. those comments included areas covering effectiveness of procedure and control limitation, changes in financial reporting over the internal control and management reporting. The management of the company is given the mandate of maintaining and establishing effective internal control on issues of financial reporting as elaborated in the Exchange Act, Rule 13a-15(f). . Zynga and Glu.
ReferenceForm 10-K (2014). United States Securities and Exchange Commission. Retrieved December 31, 2014, from http://www.sec.gov/Archives/edgar/data/1439404/000119312515060187/d833276d10k.htm#toc833276_15
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