Lackluster performance and falling market value have forced Zynga Inc., the creator of the once-phenomenal Facebook game "Farmville" to shut down its Beijing office and lay of all of its 71 employees in China.

The decision to close its Beijing office came as Zynga's shares dropped by 10 percent in extended trading on Friday while shares of rival King Digital Entertainment continues to soar.

Like Us on Facebook

King is the maker of popular games "Candy Crush Saga" and "Bubble Witch Saga", which have both toppled the dominance of "Farmville", resulting to Zynga's market value fall.

Zynga's total gross bookings, an indicator of future revenue, also missed expectations after registering just US$182.4 million, research firm StreetAccount said.

In 2012, Zynga's market value hit more than US$14 billion as players went on a buying spree to decorate their virtual farms and advance their levels.

However, games created by King Digital Entertainment started to eat up Zynga's market share by introducing mobile-focused games. King, which went public last March, has a market value of about $4.6 billion.

Zynga introduced new games but none of them reached the popularity level of "Farmville". The company also failed to produce mobile-focused games. Zynga's market value has since fallen.

Zynga's attempt to capture the Chinese market also failed to live up to expectations, prompting the company to close its Beijing office.

Zynga said on Thursday it would launch six to 10 new mobile titles this year as it tries to reverse its fortunes.

"We will deliver a 100 percent mobile-first new product slate featuring new games, with a goal of ending 2015 with more than 75 percent of our fourth quarter bookings coming from mobile," Chief Executive Don Mattrick said in a statement.

Zynga's shares fell 10 percent while King Digital's soared 18 percent in extended trading on Thursday after the companies reported contrasting fortunes in a key industry metric.

TagsZynga, Farmville, King Digital