Feeds

Zynga ABANDONS ALL HOPE of opening US gambling operation

Ex-Xbox boss tosses dice on social gaming instead

Secure remote control for conventional and virtual desktops

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
Inside the EYE of the TORnado: From Navy spooks to Silk Road
It's hard enough to peel the onion, are you hard enough to eat the core?
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.