Feeds

Zynga ABANDONS ALL HOPE of opening US gambling operation

Ex-Xbox boss tosses dice on social gaming instead

The Essential Guide to IT Transformation

Zynga has decided to give up on trying to get a gambling licence in the US, the new revenue stream many investors were banking on to lift the gaming firm's fortunes.

The makers of "Farmville" and "Words with Friends", which recently hired former Xbox boss Don Mattrick to replace founder Mark Pincus as CEO, said it now believed that its "biggest opportunity" was in focusing on free to play social games.

"While the company continues to evaluate its real money gaming products in the United Kingdom test, Zynga is making the focused choice not to pursue a license for real money gaming in the United States," the firm said in a statement on its second quarter results.

Zynga's shares had plummeted just over 17 per cent in pre-trading at the time of publication on the news, coupled with another dismal quarter in which it lost 40 per cent of its monthly active users.

New chief Mattrick said that he planned to take the company "back to basics" and told analysts in a conference call that he needed at least three months to review Zynga and figure out a further plan for its future.

He said he expected to see more volatility for the company in the next two to four quarters "as we reset".

Zynga's net loss fell slightly to $15.8m from $22.8m in the same quarter last year, but revenue dropped from $332.5m to $230.7m.

The gaming firm had one of the most hotly anticipated IPOs when it debuted at the end of 2011 at $10 a share, but has only gone downhill from there as it seemed to miss the boat on the shift to mobile devices. Shares are now worth around $3. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.