Zynga Positioning Itself For "Long Term" Profitability


Geekdad News Writer
Jan 5, 2013
Zynga Positioning Itself For "Long Term" Profitability

The ailing company recently saw a return to profitability after big staff cuts and studio closures.

2012 was not a good year for Zynga. Between its <a href=http://www.escapistmagazine.com/news/view/118723-Zynga-Share-Price-Crashes>stock crashing, <a href=http://www.escapistmagazine.com/news/view/120328-Zynga-Suffers-52-7-Million-Net-Loss-in-Third-Quarter-2012>big net losses, charges of <a href=http://www.escapistmagazine.com/news/view/118815-Law-Firm-Accuses-Zynga-Execs-of-Insider-Trading>insider training, and a cycle of <a href=http://www.escapistmagazine.com/news/view/120285-Rumor-Zynga-Hit-With-Big-Layoffs-UPDATED>mass layoffs, it endured the kind of implosion that might have been the end of other companies. That said, Zynga now appears to have stabilized, and COO Dan Ko thinks that lessons learned from its recent tribulations have helped put it back on the course to persistent profitability.

"We're not saying it's always going to go in the net, but we are saying that we want to increase our odds and always make sure we have the best shot on goal," said Ko. "What we're recognizing is that to do that, you have to make some of these tough calls. While it's always hard to shut down games that are in progress or games that are live, those calls are made so we can better position ourselves to win in the long term. We're not playing for the short term right now." The staff that survived the company's 2012 layoffs will likely appreciate this change in attitude. In the days before Zynga's downturn, some employees described it as being <a href=http://www.inc.com/eric-markowitz/inside-zynga-fun-and-games-are-over.html>"extremely mercenary", with its sights set firmly on short-term profits. This lack of a long view was arguably one of the driving factors behind its troubles in 2012.

According to Ko, those days are now in the past. "In the last few quarters, you've seen that we can be more disciplined in how we think about our costs and our expenses. I think we've shown that." Recent earnings reports would suggest that Zynga may, in fact, have turned a corner. Despite a decline in sales, bookings and active users, the company <a href=http://www.gamesindustry.biz/articles/2013-04-24-zynga-profits-USD4-1m-in-q1-but-sales-and-active-users-decline>earned $4.1 million in the first quarter of 2013, substantially better than the $85 million loss it suffered a year earlier. Coupled with this positive news however, was the reveal that it would also be shutting down several more of its games, demonstrating that it may still have a way to go before it's free and clear from danger.

Source: <a href=http://www.gamesindustry.biz/articles/2013-04-26-zynga-closing-games-puts-the-best-talent-in-the-right-places>GamesIndustry


Adam Jensen_v1legacy

I never asked for this
Sep 8, 2011
I can't believe these guys are turning any profit. Those aren't even real video games that they're making. Just copy/paste socially integrated grinding tasks.


Warning! Contains bananas!
Jun 21, 2009
Zynga is still around? Huh, I thought it had wandered off into the wilderness to die, like any disease-wracked, dying mutt would do.

Genocidicles said:
Cant EA just kill these assholes already? I mean they need the good PR right?
I'd rather have EA solve its own truckloads of problems before going all Team EA: Game Police.


New member
Sep 6, 2009
It's a false bubble they are experiencing. Remember how the banks posted a profit right after the government bailouts? It's like this, they have surplus cash because so many people have quit/been fired. This time next year they will be worse or closed entirely.


New member
Jul 24, 2009
To be honest, i forgot they were still around! And to think that at some point they were making more than EA


Swamp Weather Balloon Gas
Apr 11, 2011
Long term plan: get looking good enough to hand off company to somebody who is willing to pay for it, then run for the hills.


Mar 3, 2013
DVS BSTrD said:
Who even works at Zynga anymore?
Very few people at this stage. How do they think they can earn money if they're shutting down all their games?