Zynga loses nearly half its daily users, CEO Don Mattrick warns of 'more volatility'
New Zynga CEO Don Mattrick certainly has an uphill battle ahead of him. The social gaming giant reported significant losses for the previous quarter--and not just the monetary kind.
New Zynga CEO Don Mattrick certainly has an uphill battle ahead of him. The social gaming giant reported significant losses for the previous quarter--and not just the monetary kind.
The company ended the quarter with a net loss of $16 million. However, more distressing for the company is how quickly it is losing active users. Daily active users (DAUs) decreased 45% year-over-year in Q2, from 72 million to 39 million. That's a lot of people that are no longer playing FarmVille.
Monthly unique payers also dropped from 4.1 million to 1.9 million, a drop of over 50 percent.
Mattrick is warning shareholders that "we expect to see more volatility in our business than we would like over the next two to four quarters," a clear indication that the bleeding won't stop for quite some time. However, he's clearly optimistic about his new home. "The next few years will be a time of phenomenal growth in our space and Zynga has incredible assets to take advantage of the market opportunity," he said.
The social gaming giant has been struggling, with significant layoffs not too long ago.
Pledging to "go back to basics," Zynga's focus will remain on free-to-play social games. Although the company is launching real-money gaming products around the world, Zynga is choosing not to do so in the US. "Zynga will continue to evaluate all of its priorities against the growing market opportunity in free, social gaming, including social casino offerings," the company stated in their report.
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Andrew Yoon posted a new article, Zynga loses nearly half its daily users, CEO Don Mattrick warns of 'more volatility'.
New Zynga CEO Don Mattrick certainly has an uphill battle ahead of him. The social gaming giant reported significant losses for the previous quarter--and not just the monetary kind.-
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This sums it up nicely.
http://www.youtube.com/watch?v=48H34ukFe8g -
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Keep in mind this is after the resignation of...
Chief Operating Officer John Schappert (August 9 2012; note that he left EA in 2011 to join Zynga) http://www.shacknews.com/article/75211/zynga-coo-john-schappert-resigns
Chief Creative Officer Mike Verdu (August 29 2012) http://www.shacknews.com/article/75507/zynga-cco-exits-plans-new-company
Chief Game Designer Brian Reynolds (January 2013) http://www.shacknews.com/article/77621/zyngas-chief-game-designer-resigns-wants-to-work-with-smaller
Former OMGPOP CEO Dan Porter (April 2013) http://www.shacknews.com/article/78557/former-draw-something-studio-ceo-leaves-zynga
...as well as Cowen's Doug Kreutz noting an 18% quarterly DAU decline for two years prior to January 2012 ( http://www.gamesindustry.biz/articles/2012-01-18-new-zynga-titles-struggle ), noting that "Zynga will likely need several multiple-million DAU titles per quarter just to keep its overall Facebook DAUs from continued decline." Yeah, I don't think that happened. Zynga acquired OMGPOP in March 2012, and 2 months later it was noted that Draw Something's DAUs were declining: http://www.shacknews.com/article/73622/draw-something-daily-usage-drops-33-percent
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It depends Farmville use to be about spending money to get swag. There was no strategy, and no goal. Just build and grind or spend money to a "better" looking farm. You will eventually have it all. Farmville 2 currently has more strategy and just more to do. You can't even do everything since resources are limit and you can not buy your way into winning. There are daily goals, weekly goals and even an end game. Also you can play the game from Zynga's web site so you no longer need to spam your facebook friends. The only real criticism is the game is constantly advertising "better" stuff that you need to buy with real money. However all of it isn't really any better, mostly cosmetic and doesn't aid in winning the game. If you are easily influenced, you could end up wasting real money.
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Lol...;) He means "0" to date because xbones aren't shipping yet...;) Unfortunately, he isn't talking about the brainless meatheads who have actually pre-ordered this monstrosity...!
It's the same for the PS4 at the moment--0 sales because it isn't shipping yet, with oodles of mindless pre-orders behind it.
Ah, if only folks would magically develop the good sense to go out right now and buy a PC that will handily outperform either console, cost about the same--maybe a bit more, and be unbelievably more useful and handy for a host of other things. A PC they can upgrade and service *themselves*---If only....
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I am beginning to wonder if these fools have ever heard the term
Fad before, you know the thing where stupid piddly little games
or songs or movies are popular for a few years and then fade
into almost utter obscurity because turns out they were really
shallow and had no long term viability......
Their games were generally frustrating and i heard more complaints
about them then i ever did praise, honestly i never could play any
of the ones i tried more than a few minutes.
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