Mark Pincus On Zynga Revenue: "I need revenue right f*ing now"... "I did every horrible thing in the book"
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Zynga Pulls Plug on YoVille - Million$ in YoCash evaporate!
Mark Pincus On Zynga Revenue: "I need revenue right f*ing now"... "I did every horrible thing in the book"
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That's from five years ago, and that five year old video is him talking about events even years earlier.
While still valid about the mindset of Zynga, it's important to note that that's a tiny snippet of a whole talk about events that happened in 2007 (seven years ago).
At least Zynga is honest about being deceitful and greedy. Most companies that you trust every day are just as bad, and are stabbing you in the back, but hide it behind a smile and a handshake.
Author
Why Zynga Stock Is Sinking?
"First of all, ZNGA has shut down its YoVille game. YoVille was once a top title but was not able to keep up the momentum. And unfortunately, the company has had a tough time coming up with new games to make up for these types of losses"
by Dan Caplinger, The Motley Fool Jan 16th 2014 8:30PM
Updated Jan 16th 2014 8:32PM
<<<Zynga dropped 12% after analysts at Sterne Agee argued that the online video game specialist could disappoint investors when it reports its earnings early next month. The company recently irritated fans of its longest-running video game by deciding to shut down the offering, giving investors another reason to fear that Zynga's management isn't in touch with the wishes of its most dedicated users.>>>
http://www.dailyfinance.com/2014/01/16/why-zynga-herbalife-and-best-buy-tumbled-today/
http://mwap.me.uk/game-industry-news/the-future-of-yoville.html
http://recode.net/2014/01/16/zynga-stock-drops-12-percent-after-pessimistic-analyst-note/
http://www.thestreet.com/story/12242965/1/why-zynga-znga-is-downtoday.html
http://www.cnbc.com/id/101342733
http://localuknews.co.uk/london/news/localnews/london-company-wants-to-save-virtual-yoville-world
...I am a gamer. Not because I have no life. I just choose to have many!...
Zynga dropped 12% after analysts at Sterne Agee argued that the online video game specialist could disappoint investors when it reports its earnings early next month.
One analyst (Arvind Bhatia). Behold my prediction becoming true. 
Who is Arvind Bhatia anyway, and who is Sterne Agee? It's always stunning to see how stupid investors are, and how fast the word "analysts say" spreads. Investors are already panic-selling stocks because some entirely meaningless person at some meaningless private broker company which claims to exist for over 100 years (and which I've never heard of before!) says... something. In particular, he says something and doesn't tell anything. Might, could, let's not commit to something.
It's that same Arvind Bhatia who expected Grand Theft Auto V would be a success. Oh wow, what an insight, who would have thought.
Except his highly qualified and detailed analysis was complete bullshit and in absolutely no relation to the actual sales. The only thing he was right about was that GTA5 was a success. I herewith predict that the sun will rise tomorrow. Is that worth anything, too?
Bhatia's prediction of $700M for the first quarter was surpassed before the end of the first day, and the actual sales surpassed twice the predicted numbers within a week.
This entire thread proves how game mechanics affects the popularity of games, and how gaming companies have used game mechanics to trap people into a system and even mind set.
It's extortion really.
It's the same way the advertisment of fear in the media can control the stocks.
Except this type of gameplay isn't done to affect a video game, it's done to affect you life, and sometimes (more than likely) your wallet.
It's not just Zynga, it's every business owner whoose main objective is "get money at all costs."
Perhaps Embezzlement is a better term? Yeah, embezzlement sounds better.
It's extortion really.
It's the same way the advertisment of fear in the media can control the stocks.
Except this type of gameplay isn't done to affect a video game, it's done to affect you life, and sometimes (more than likely) your wallet.
It's not just Zynga, it's every business owner whoose main objective is "get money at all costs."
Perhaps Embezzlement is a better term? Yeah, embezzlement sounds better.
What do you think about Zynga de-funding and killing a project that holds paid consumer assets in its servers? It may be legal according to the games EULA & TOS, however is it right? Some folks have not even spent their yocash holdings and others have not explored all their achievements.
Knowing some of the actual hosting requirements and costs for some of their games, and given the volumes, I believe its perfectly possible that the game is no longer profitable for them. You have to realize that having a "lot of active/paying users" isn't nearly enough to field a financially-viable model. If they're shutting down the game, its more than probably because they don't turn up a profit. This is a business, not a charity, after-all.
I agree that it's probably not profitable right now. I believe that is poor management. They did have 6M members at one point until everything started breaking. They have continually ignored all these issues and concentrated instead on all the gambling games they own which no doubt are more profitable. However, an ounce of prevention is worth a pound of cure. Had they addressed the issues as they arose instead of putting Yoville on the back burner, it would have remained profitable.
6M users does not guarantee profitability even with stellar management. It is quite possible that the core game loop or MVP features of the game simply require more resources (server costs etc) or do not provide a sustainable game model. Some key metrics such as engagement and user conversion may not be up to standards, regardless of how "fun" the game is. This is the key difference between a hobbyist and a business. Zynga cannot afford such a liability just for the sake of "having a good game" out there. Many employees' jobs depend on it. I rarely come in defense of Zynga, but I believe it is the right call for their sake.
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