Shares of Zynga closed up 3.8% on Tuesday as traditional video game companies faltered.
NEW YORK (TheStreet) -- Social Shares of social gaming firm Zynga(:ZNGA) continued their ascent on Tuesday, closing up 3.8% to $9.21 as traditional video game companies in turn saw their shares drop.
Zynga shares gained momentum after the FarmVille maker last week nabbed former Electronic Arts(:EA) exec Barry Cottle as its new executive vice president of business and corporate development.
A new report claiming that an increasing amount of corporate bandwith is being taken up by employees playing Zynga games on Facebook's platform may also have lifted Zynga shares. Over 50% of the companies surveyed by network security company Palo Alto Networks reported that employees were playing games like CityVille and Empires & Allies.
Traditional video game rival Electronic Arts, meanwhile, closed down 1.9% to $17.69 on Tuesday, while shares of Activision Blizzard dropped 2% to $11.99 amid a gloomy forecast for video game sales.
Industry tracker NPD said on Friday video game sales during the month of December had decreased 21% to $3.99 billion from $5.07 billion a year prior. During 2011, total video game sales-- including hardware, software and accessories--fell 8% to $17.02 billion.
--Written by Olivia Oran in New York.
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