Zynga Inc., the popular gaming company, which rose to fame with “Farmville” has finally decided to put an end to the litigation charges against it by settling at $23 million or Rs. 146 crore. The company was charged for making false statements to the shareholders about their business prospect during their initial public offering in December 2011, reports Thomson Reuters.
Zynga settles litigation charges
While releasing the quarterly report on Friday, the company said that they have reached the settlement through mediation this week.
The company even mentioned that the settlement will not make any negative impact on the finances of the company as insurers would bear the entire responsibility of the payout. Zynga though initially gained immense success in the online gaming world started struggling after they failed to design games as popular as Farmville.
According to the reports, the company did not mention on how the changes made in Facebook platform would affect their demand, which led to the lawsuit. Though the company has publicly declared about the settlement, it is not recorded in the records of court and it will take a few months to get complete judicial approval in the case. Once the things are sorted, the company may expect to see some rise in the profit. … Read the rest
Zynga has planned to take a plunge into gambling business and not simple online Poker gamble but the real one with cold hard cash. Zynga has filled the paperwork and the process has started to procure the license for gambling in Nevada. Getting license is Nevada is not a cake walk. The state will review the financial condition of the company and see whether it is fit to hold the license .
It was this year that the justice department lifted the ban from online gaming. Nevada is first of the states to allow online poker games.
Zynga is hoping for the best as there are many new openings coming in the zynga market.
“As we’ve said previously, the broader U.S. market is an opportunity that’s further out on the horizon based on legislative developments, but we are preparing for a regulated market,” said Zynga Chief Revenue Officer Barry Cottle in a statement.… Read the rest
Dark clouds seems to be hovering over social gaming giant Zynga with the latest news of resignation and departure of Zynga chief security officer Nils Puhlmann.
Over the last couple of months, Zynga has seen the exit of various top level executives and managers as the firm’s stock plunged around 70 percent after it went public.
This news was reported in Techcrunch, which quoted several sources familiar with the matter.
Puhlmann, joined Zynga three years back in 2009 as CSO until he resigned yesterday. However, details regarding his resignation are still unknown.
The San Francisco-based social game company was trying to keep up its foothold on Facebook network and now laid emphasis on mobile gaming.
Zynga saw departures due to weak earnings report, when many executives decided to leave the firm and venture out on their own.
Various executives who left Zynga over the recent months include John Schappert, Chief Operating Officer, Allan Leinwand, Infrastructure Chief Technology Officer, Mike Verdu, Chief Creative Officer and Jeff Karp, Chief Marketing and Revenue Officer.
Zynga has also seen the departure of various other general managers and vice presidents.… Read the rest
Even as Zynga comes to terms with the round of multiple resignations, the latest one to follow suit is Mike Verdu, Chief Creative Officer of the social gaming company. Other executives who recently left the firm include chief operating officer, John Schappert, and general managers Alan Patmore, Eric Bethke, Ya-Bing Chu, and Jeremy Strauser. Verdu has handed in his resignation and plans to set up his own company. The creators of popular social games such as Farmville, Zynga’s stock prices have tumbled down to 20 percent of its peak value from the first half of the year.
In his parting blog post, Verdu thanks his colleagues at Zynga for all of their support and encouragement, and expressed pride on having seen the company transform into a “vibrant community of game designers, producers and creative leaders”. As Verdu transitions out and tries his hand at being an entrepreneur, his roles will be looked after by a team of three creative leaders from within the firm – Brian Reynlods, Tim LeTourneau, and Bill Jackson.
Although sources within the firm insist that Verdu’s departure is solely because he wished to create his own mobile gaming company, his timing could not be more unfortunate for Zynga. Zynga has blamed Facebook’s recent algorithm modifications for its poor performance in recent times, causing delays in releasing new products to market. The company, which was already battling tumbling stock prices, now finds itself without sufficient senior management, making it even harder to convince the 3000 odd employees to stay on. Even the recently authorized release of 43 million new shares as an incentive might not be adequate to retain employees in these troubled times.
Zynga went public in December 2011 and was initially valued at $8.9 billion. However, after the stocks took a beating, its value dropped down to $2.3 billion, on account of a weak earnings report. For now, the company will have to focus more on bringing out new products to the market after overcoming the delays and work towards maintaining faith among its employees about its future.… Read the rest
Amazon, online retailer and cloud computing company, has today ventured into the first social game studio with Living Classics. Made by the company’s Amazon Game Studios, this free game features a family of foxes roaming into active illustrations of their much preferred books such as Alice in Wonderland, The Wizard of Oz, and King Arthur.
The electronic commerce company offers users a chance to “explore worlds”, “find moving objects”, “help friends” and more through this game that has been released on the social networking site Facebook.
Living Classics is the first title released by Amazon Game Studios. The entire team of this new venture is focused to create innovative, fun, and well-crafted games.
Currently, Amazon is tight lipped as to what they are planning next. Yet, this game seems to aim to entertain families, especially children.
Game Studio gave out an announcement today, stating, “We know that many Amazon customers enjoy playing games – including free-to-play social games – and thanks to Amazon’s know-how, we believe we can deliver a great, accessible gaming experience that gamers and our customers can play any time.”
It looks like Amazon has set off its first rivalry with Zynga that is already a leader in social gaming. Let’s see what Amazon Game Studios offers in the upcoming months, especially if the company chooses to carry on with Zynga’s path. We’ll have to see whether Amazon will be able to strike it right or not in the social gaming market.… Read the rest
The surprising second-quarter stumble of Zynga has created questions about the company’s prospects with the social networking site, Facebook that actually makes up a major portion of revenue through gaming. Posting a plunge of $22.8 million for the quarter Wednesday, there have been concerns whether the gaming business can sustain or not. Zynga has seen a decline in the player engagement and enthusiasm for its games in recent months.
Zynga’s shares opened at $3.06 in Thursday trading from a previous close of $5.08 that is far below its Initial Price Offering (IPO) of $10. The company has failed to demonstrate reasonable earnings on the horizon that has left all investors wishing for another game to play.
In an earnings call Wednesday, the Farmville-maker said that delays in the launch of some games mark the reason behind the company’s loss. Zynga, a social gaming giant also admitted that its high-profile acquisition of OMGPop and its “Draw Something” game has yet to pay off. Shortly after release, the game was a number-one but slipped out of the highest downloads lists on Apple’s iTunes and Google’s Play stores.
The company blamed the changes to Facebook’s Web platform for the lost interest as this platform has been directing users to newer games from other publishers.
But analysts have said that Zynga’s recent performance shows that consumers aren’t sold on the idea of buying virtual goods— a trend that could send ripples across the technology industry.
Facebook’s shares also swung into loss due to the drop in Zynga’s shares, with wary investors likely recalling that, at last count, Zynga itself accounted for 12 percent of Facebook’s total revenue.
Facebook posts its first earnings report as a public company Thursday amid concerns that it will also struggle to prove it knows how to make money off its 900 million users — who give their personal information to the site but use its services for free.
With earnings coming after the closing bell, Facebook shares opened at $27.75, down from a previous close of $29.34.… Read the rest
Everyone would be familiar with Farmville and if you are a Facebook user, one out of your four friends would have played the game or invited you to do the same. Zynga, a company which just wanted you to enjoy gaming with your favorite buddies has now initiated the ultimate in gaming experience. Initiating the first of its kind social network based on the concept of gaming together, Zynga developers have announced the launch of Zynga with Friends. zFriends, as the popular network is known as will help gamers to search for players with similar interests and play styles. Preparing gaming as the basis for forming a connect with other individuals, the platform will also help them to collate all the games that they play on the network. Through this, they can ‘connect’ with fellow gamers on the network through any interface such as Facebook, smartphone or the World Wide Web.
The company has taken on the stronghold of popular social media sites such as Facebook and Twitter, even adopting a service called Social Stream, which will update users about the games being played by others using Zynga and their particular requirements regarding the various games. It would even suggest a list of possible competition which can battle it with you in a game of your choice. There would also be a new chat interface along with a record of status of an individual regarding various games on his own personal profile – a trick similar to Google+. zFriends will also have a ‘lobby’ which would provide all the updates regarding the various games available on Zynga. At one point, the participant would be able to see the challenges put forth to him by other users along with any gifts forwarded by other players and a list of gamers present online. Knowing all these aspects does make one aware that Zynga do take their games seriously and this time around they are ready to get the world involved – a fact well acknowledged by their staff.
Manuel Bronstein, general manager of Zynga asserted this by saying, “Some days you play on Facebook, others on smartphone, but we want to ensure that all your friends, your scores, your achievements follow you wherever you are. You are one player across the entire network.” This does make one sound like the king of ‘his gaming world’. Besides their own games, Zynga would also be connecting to third-party developers through its Zynga API system which would make them a route to access games by other studios such as Konami, 50 Cubes, etc. This may be the tip of the iceberg as Zynga plans to move into more intense formats with ‘sports, first-person shooters, hardcore strategy games, role-playing games’, to mention a few.
For a website which began with the Zynga poker, the enterprise now stands to challenge the popular social networking sites with its unique concept. Even as Facebook notches up an impressible 901 million users on its site, 250 million of them try out Zynga games and as it plans to develop a deeper relationship between the gamers, one can imagine the power of social gaming develop in the coming years.