Feeds

Zynga ABANDONS ALL HOPE of opening US gambling operation

Ex-Xbox boss tosses dice on social gaming instead

Top three mobile application threats

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. ®

Top three mobile application threats

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.