Zynga’s problem seems to be one that most of America can share in this economy: money. Since filing IPO at $10 a share, the price has been driven down to all new low of $2.33 a share. This isn’t acceptable for any corporation. It’s what is normally called “tanking.” To offset the losses Zynga has had to trim the fat. Fat being the game titles that are not producing. They might bring in some revenue, but the cost to keep the games out there exceeds what they bring in. It makes for fiscal sense, but unhappy customers.
Zynga has had game titles splashed pretty much over every social media site, so nearly anyone who is anyone is familiar with the company. Offering such favorite games as Castleville and Farmville, it’s hard to imagine that they’ve had to lay off 100 employees and close offices. This economy has had no mercy on any individual or company. Drastic measures are needed to try and keep th leaking boat from sinking.
This isn’t the first time a company has found itself in the red by overextending itself. The San Francisco based operation went all out on adding game after game to social media sites to draw in the consumers. It worked, but at the same time thinned out the revenue. Rather than let loose with non or low performing games at the time, they’ve tried to keep them all afloat. It’s understandable to want to keep consumer relations good, but now it’s at the point where many more will be angry for a longer period to come.
Perhaps if measures to trim the fat had been done earlier, there wouldn’t have been a need to cut this many titles. Certainly ongoing business strategies are going to have to be given a lot of scrutiny before moving forward this New Year. It shouldn’t take a stock “tanking” for the personnel that handle the bottom line to know the company is feeling a little ill. Stockholders might want to scrutinize that a little more before investing further.
What are titles that were given the axe?
- Vampire Wars
- Mafia Wars Shakedown
- Mafia Wars 2
- Treasure Isle
- Indiana Jones Adventure World -Closes January 14
- Word Scramble Challenge
All of these titles excepting the Indiana Jones Adventure World became inactive no later than December 30, 2012. The Indiana Jones will stay alive until January 14th. They reassure everyone that it isn’t going to affect a huge amount of people, but what about the ones that it DOES? Who wants to explain to a 5 year old that her pet on Petville had to be “put down” by the economy? It’s probably as bad as having to explain to a kid why your mom or dad worked at Zynga and now has to find another job.
Will Zynga survive?
That’s the plan as they roll out a whole new selection of games for social media gamers. The focus has turned to trying to keep the remaining workforce employed and bringing up the stock prices. Only time will tell if these measures truly worked. Let’s hope that they don’t go overboard on the release of new games. This is what got them in this mess to begin with.
New Year always means out with the old and in with the new. For social media gamers it’s a mixed bag of good and bad. Losing some games that many had devoted untold hours and poured tons of cash into, and then being offered new ones that might be equally time and cash is just not good. Should they get addicted again?
Author Bio: The article has been submitted by Jason Phillips. He has contributed a number of quality articles to many famous websites. At his free time he usually enjoys playing Zombie Games 365 with his 7 year old nephew.