Zynga Will Concentrate on Online Gambling

Published Tuesday, June 04, 2013 - Online-Casinos.com
Zynga Will Concentrate on Online Gambling

Business is business and sometimes the scaling back of original plans and reconstructing the infrastructure is necessary to stay afloat. Once back on an even keel a business can rehire and build a bigger or maybe more effective team.

It looks like the game developer and social networking entertainment firm Zynga is going with this strategy for now. Zynga recently announced that it would eliminate about 18 percent of its workforce, which will result in around 520 people cut from the pay role saving the firm $70-$80 million pre-tax. This figure coincidently is about the same as the decline in revenues of 18 percent in the first quarter of this year.

The restructuring of Zynga to a for real money game provider on social networks the company has decided to cross four or its games off the list and concentrate on the mid-core games, real-money gaming and franchises that have demonstrated success in the recent last few quarters. Zynga has high hopes for its mid-core games. This genre keeps users engaged for longer periods of time. The target of the mid core game is to attract a larger user base thus the social aspect potentially driving some advertizing to the customer while engaging the casual and more serious players.

This company can make a big difference to its business if it can tap the $32 billion dollar online gambling market successfully. The strategy has been deployed already with Zynga’s online poker for real money and The Zynga plus casino offering in the regulated gambling environment of the United Kingdom.

Mark Pincus, Zynga’s CEO said in a letter that Zynga was "making these moves proactively and from a position of financial strength." This refers to the amount of cash on hand $426 million after the initial public offering that’s less than half its total take from the IPO. The move hasn’t impressed investors as the Zynga value still declined further on the news.

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