I think Zynga might not be a good example, in my opinion it&#x27;s a company that doesn&#x27;t care about their customers enough. Any company takes that road will face the similar results.
I&#x27;m not exactly sure if it&#x27;s a market with low margins also, with mobile phones, cheaper PCs and more accessable consoles the gaming business is getting bigger. In every business there&#x27;re big players, but look at SuperCell, in 3 years they were valued more than 4 Billion, actually SoftBank bouth 51% of Supercell for 2.1B. Wargaming, Riot Games are the other examples. 
I think we still couldn&#x27;t figure out how to iterate quickly and find winning games, like we did in lean startup model.
As an example you can manage to develop a game and do a soft launch to see the retention values for under 50K USD, talking about mobile games. So with a very basic calculation a small studio can iterate through 8-9 games with 500K USD investment, and I think optimizing these iterations are also possible.