EA: Zynga Has "Dropped to Their Knees"

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EA: Zynga Has "Dropped to Their Knees"

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Zynga is struggling because it failed to diversify, according to EA's Peter Moore.

EA's stock price has been sinking steadily since December, 2011, dropping from $23 to $11.37 in less than a year. That hasn't stopped EA exec, Peter Moore, from offering his opinion on Zynga's plunging share value.

"To use, if you will, an Olympic analogy, we're competing in the decathlon and if we miss in one event, we've got nine others we can make up on," he told Bloomberg. " Zynga is running a marathon. They just hit the wall and dropped to their knees."

Zynga is struggling to keep its stock prices above the $2.50 mark as social gaming profits fall across the board. A number of Zynga insiders, including CEO Markus Pincus, sold portions of their holdings for millions of dollars shortly before the share prices plummeted, leading to accusations of insider trading. Zynga employees, on the other hand, can't sell their shares until August 16th, when they will, if the current trend continues, be worth marginally less than a bag of Skittles.

While EA has a lot of money invested in the ailing social gaming market, the company has lots of fingers in lots of different pies. Despite recently agreeing to give up its stranglehold on American football licenses, EA's sports games are still almost guaranteed money spinners. The company also has a lot of money invested in mobile gaming, which according to Moore, "is where [EA] is seeing the real growth."

Source: Bloomberg

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Erm... surprise? There never seems to be a long term market with just one game for the casual audience and yet they try.

They dropped to their knees... in the shower... right in front of our crotch...

I'll stop there. Please excuse me, I have to punch myself in the face.

I'm sorry, but i'm not sure EA is the type of company that can be trusted to give solid advice on things like financial success...

Devoneaux:
I'm sorry, but i'm not sure EA is the type of company that can be trusted to give solid advice on things like financial success...

I'd say that there's nothing wrong with their monetising (they do still make a lot of money) - it's just their long-term overall strategy that's balls, coupled with a PR department run by nihilist monkeys.

I hate commentary by these people because it's always something that is either ridiculously wrong, or painfully obvious.

2K: We need photorealistic graphics to create new genres = ridiculously wrong
EA: They only had one game so when the popularity declines they will lose money fast = Painfully obvious.

EA is doing an Oylmpic decathlon? Well christ, by the 6th/7th event they'll be on their knees begging for mercy aswell. Even Activision'll do better than them and they can only only just scrape a pentathlon team together. At a hilariously large stretch.

Maybe EA is trying to make some hate-powered energy source. It's the only explenation as to why they keep saying shit like this.

Gearhead mk2:
Maybe EA is trying to make some hate-powered energy source. It's the only explenation as to why they keep saying shit like this.

Imagine the CEO with pointy hair. Then, you'll understand why they say this stuff.

This is a joke, right? It's got to be a joke. You just made this up, didn't you?

There's no way that EA thinks they're in any position to laugh at the plight of others right now. Surely no one is that stupid. Or at least that's what I'll keep telling myself over here in my corner....happy place....

WickedFire:
EA is doing an Oylmpic decathlon? Well christ, by the 6th/7th event they'll be on their knees begging for mercy aswell. Even Activision'll do better than them and they can only only just scrape a pentathlon team together. At a hilariously large stretch.

Aaaaand Valve is the winner! Closely followed by indie devs GO PLAY BASTION!

So they are done picking on Valve and moved onto a company less popular with gamers?

Are they planning on working their way back up?

EA its a bit soon to be talking smack when you just reported a huge loss and are circling the drain slightly above zynga.

The title does not elicit a pretty image.

Still, funny to see this happen to Zynga. All those months of churning out crappy knock-offs, and now it's about to go all away.

Casual audiences are fickle. Go figure, since they don't really have a love for gaming other than something to waste time with while they're supposed to be working (note that some of that is sarcasm, but I won't say which part). I feel that anyone who thinks investing in casual dev's long term is smart is actually in for a massive fail and loss of money.
People seem to forget the .com bubble burst of 2000 and other flash-in-the-pan markets, which is why learning history is a smart thing to do, especially when investing.

Zynga set itself up to fail intentionally so that the overinflated wallets of its owners could become even more overinflated.

How do people not understand this?

I really fell bad for those Zynga employees forced to copy paste FarmVille month after month. Now they are not only out of a job but also all their savings...

Oh Zynga, the one gaming company that makes EA look good. Of course they won't wait to say "Hey you might hate us but at least we're not Zynga!... Now who wants another bland modern military first person shooter in an already saturated market?!"

Foolish Z'rick! Your robbing of the graves of the dead has begun to fail, now that the villagers have begun posting guards at the resting places of their loved ones! But I, Lord Dreadmort, with my endeavors in necromancy, diabolic pacts, blood sacrifices, unnatural gene splicing, and toxic waste dumping shall make my evil will felt for centuries to come! Muh ha ha HA HA HA....!

Baresark:
I hate commentary by these people because it's always something that is either ridiculously wrong, or painfully obvious.

2K: We need photorealistic graphics to create new genres = ridiculously wrong
EA: They only had one game so when the popularity declines they will lose money fast = Painfully obvious.

truth. everytime i read something it is one of these extremes, there are very few times you read something level headed, if you do it's probably from someone in indie or with some kind of kickstarter group, because they realized how retarded most publishers are and went rogue/independent.

Zynga should be more like EA: sucking out originality and diversity across ALL platforms!

...Why is there a wall in the middle of the marathon track?

Evil Smurf:

WickedFire:
EA is doing an Oylmpic decathlon? Well christ, by the 6th/7th event they'll be on their knees begging for mercy aswell. Even Activision'll do better than them and they can only only just scrape a pentathlon team together. At a hilariously large stretch.

Aaaaand Valve is the winner! Closely followed by indie devs GO PLAY BASTION!

It only looks that way because Valve is almost an entire lap behind the indies.

And EA is diversifying by making everything an FPS or third person shooter?

I don't even care anymore. I should care that this is still a company that employs workers, who will get the shaft.. but all I can muster is "Bring your experience to a more fruitful endeavor this time."

Zynga games are well and truly evil. Just like Facebook. They're designed to be extremely anti-social, and you are encouraged to use your "friends" as mere resources to continue playing. Not even MMOs go so far, MMO's are typically people that agree to work together until you decide you've had your fun and stop. Zynga games just exploit the "resource" indefinitely, because it's tied in with the stupid Orwellian Facebook nonsense that never goes away and wishes to integrate into everything you do.

Hint:

YouTube, Twitter, Facebook

You - Twit - Face

"Hello Kettle? Yes, this is Pot. YOU'RE BLACK!"

Meanwhile, the rest of the gaming world is trying to hold in the laughter. It's quite hard.

Yes... Social networked based gaming is going to die a horrible, miserable death, alone in a dark room at the bottom of the ocean. Welcome to 2008, Its ok that your tardy to the party but its nice you finally arrived.

ResonanceSD:
"Hello Kettle? Yes, this is Pot. YOU'RE BLACK!"...

Meanwhile I am trying to hold by my laughter at that win. This is why this forum needs a "like" feature!

On topic: Credit where it's due: At least EA is right this time!

I make it a point never to trust words filtered through the speaker's own foot.

Devoneaux:
I'm sorry, but i'm not sure EA is the type of company that can be trusted to give solid advice on things like financial success...

Exactly why is a company that's seen massive financial success not be trusted to give solid advice on financial success?

It's easy to see why he says this. To make sure everybody who has little knowledge about those vidja games know that just because zynga stock is dropping, EA stock won't drop.

To translate his message so that gamers understand: "Zynga is a near empty-product and you never know when players realize the nihilism of playing such a bad game. We at EA pride ourselves on carrying multiple of those near empty-products so that our customers are always suckered into playing one of them."

Your smugness is not becoming of you EA.

You are not far behind.

The problem with Zynga and EA, is they see everything as a potential market - every aspect of life is a potential market to them. Social gaming should have stuck with advertising for revenue, and mobile gaming is going to suffer soon too, because expecting people to buy a game, then spend money on it to get anything decent, that can't last long.

The bottom line is that gamers tastes change, gaming addictions are very temporary when there are so many options out there. Most recently I'm addicted to Ski Safari on the iPad - it cost 0.69 and it doesn't expect me to pay any more money for gadgets or gameplay features. That's why it's awesome, the upgrades/powerups have to be earned, not held to ransom by the publishers. The people who play Farmville, well there's no reason why they wouldn't enjoy about a million other games, games that are cheap or free, games that don't rely on constant funding, games that aren't shallow. It was bound to happen eventually, there will always be an alternative that's better and cheaper, constantly, the trick is to maximise the time when your product is popular and make the most of it - instead, Zynga went and assumed they owned the gaming world, could do what they like, could take other peoples designs without concern, could sell shares when it benefitted them the most. Zynga is a husk of a company now, I feel bad for the developers who put their faith in a bunch of dickheads who I'd happily see locked up.

It's a good thing for indi developers, that's for sure - Zynga was damaging the industry, and now there is that space for another flyaway success, maybe several, indi developers will start to trust the iOS platform with their ideas, and the Facebook platform has a lot of space for innovation now. Ideas might center around providing good gamplay, rather than mugging us. Whether Zynga is gone for good, or just severely struggling, it's a good thing. Maybe some of Zynga's developers should break away and start their own proper game company, with proper games that you only have to pay for once, or are paid for through advertising.
Zynga dug too deeply, and too greedily, into the wallets of single moms, the unemployed and high-school kids.

I wonder if Zynga's style of games hasn't been a huge benefit to the gaming community by acting as a footboard for people who weren't gamers (but were social) previously to discover gaming and the wide variety of frankly better games out there. I mean, is this just the pool of new gamers introduced through social media drying up as they graduate onto bigger better things? people could be getting bored I suppose, but I believe in conservation of gamerism. :D

EA says something right: "Duh, obvious!
Anyone else says something right: "Yup, that's correct."

Jesus, people, give them due credit.
He is absolutely right there, and I am still somewhat happy that Zynga goes down. I feel for all those people losing their jobs but it's good to show the world that microtransaction-based games won't work on a long-term basis. I just hope those losing jobs can find some new work, maybe at other game companies.
Then again, Zynga did introduce many people to gaming...so yeah, it wasn't all bad.

And I hope EA takes the road of improvement after all that hatred towards them lest they become another failing company in a few years. EA can do good things, it's just that bad things made them a lot of money thus far -- and no businessman in his right mind would take risks if what they're doing right now is already making money. But since that changed somewhat, they may go in good and new directions.

WhiteTigerShiro:

Devoneaux:
I'm sorry, but i'm not sure EA is the type of company that can be trusted to give solid advice on things like financial success...

Exactly why is a company that's seen massive financial success not be trusted to give solid advice on financial success?

EA's strategy seems to be geared towards making fast money quickly. It works in the short term yes, but over the long term, their horrible policies can and have caught up with them, I just don't think EA is someone you'd want advice from when it comes to having a sound long term business plan.

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