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. ®

HP ProLiant Gen8: Integrated lifecycle automation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.