Zynga has been mixed in recent days, with a looming transition

Social gaming maker Zynga has been mixed lately. The new CEO, Tang Matrick, is trying to bring Zynga back to the earnings track, but the company is still losing money, according to the latest quarterly results, which ended September 30. Recently, foreign media alistdaily published a commentary entitled "Zynga: Learning a novel" to analyze the status of Zynga and the possibilities for future development.

The article said Zynga's successful hiring of gaming industry veteran Criff Donny Clive Downie as chief operating officer was the most exciting news of the company's recent time. Criff Donny is shrewd and has been a seasoned manager for years in the gaming industry, and has previously worked for Dena, the American Art Electric Company (EA) and the Japanese mobile social gaming giant. Before joining Zynga, Downey was the CEO of Dena Western Region.

"Zynga will have two positive effects by digging up Downey's position as CEO of Dena Western Region," he said. "the article wrote. "First of all, with his own experience and judgment, Downey will help Zynga become a profitable mobile gaming company." Second, it also means that Zynga is truly a powerful competitor in the mobile gaming world. Donnie is willing to jump from Dena, and Zynga certainly showed him the company's future development plan and persuaded him. ”

The bad news for Zynga is that although the latest fiscal season is close to equilibrium, it is not because of revenue growth but because of lower costs. The company's third-quarter revenue was $203 million, down 36% from a year earlier, down 12% from the second quarter of the year. In terms of user base, Zynga also has its own skeleton: "Daily active users in the third quarter of 2012 (DAU) 60 million, DAU3000 million in the third quarter of this year, the decline of 49%." Compared with 39 million in the last quarter, the Dau fell 23% this season. Which Internet end DAU1600 million, mobile end DAU1400 million. ”

But the upside, the authors say, is that Zynga still has plenty of money available to restore the downturn, with enough flexibility and space to make changes. "While Zynga's users are shrinking, most players are abandoning their social games, which are not happening on the mobile platform," he said. Players seem to be tired of Facebook games, so the decline in social gaming is a trend. In other words, Facebook is no longer the best gaming platform to create a lot of wealth for gaming companies, as it has in the past. Even Facebook is turning its attention to the mobile and advertising businesses. ”

So Zynga's immediate priority is to accelerate the pace and continue to launch mobile games, so that there is a chance to create a masterpiece. The article points out that although the mobile game is still very young, but the replacement speed is very fast. "Angry Birds" can not squeeze into the top 10, in the top 10 list, many are raw faces. One of the advantages of free gaming is giving players more chances to try out new games ... This poses a threat to game publishers. When a game's freshness fades, the player will quickly turn to another newer game. "The article said.

As global mobile device sales continue to grow, there is a huge amount of space available for Zynga in the mobile gaming arena. The author believes that Zynga has many creative talents, a solid technology base, and an experienced management team, and is hopeful to explore more possibilities for mobile platforms. "What Zynga needs to do now is to ensure efficient execution, ensure a steady pace of game development, and strive to build a new masterpiece while maintaining the masterpieces of Zynga Poker and Farmville." ”

Tang Matrick talked about the adjustment of product lines and organizational structure. In the next 1-2 quarters, we'll see if his changes at Zynga are working. Given the rapid development of mobile gaming business, it is too late to have a positive change in Zynga after 1-2 quarters. "the article wrote. "Analysts are optimistic about Zynga's future, but the clock is ticking," he said. Zynga must quickly launch mobile games and investors ' patience is limited. ”