Zynga sheds daily users as it announces $15.8M loss

Social gaming giant announces a $15.8M loss for the second quarter of 2013, losing almost half of its active daily players year-on-year.

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Farmville maker Zynga has announced a $15.8M loss for the second quarter of 2013, as daily users of its social games fell by 45 per cent over the last 12 months.

Thirty-nine million people now play Zynga titles on a daily basis, down from 72M this time last year. Alongside the drop in active daily players, the number of people playing a Zynga game at least once a month also dropped 39 per cent year-on-year to 187M, down from 306M in the second quarter of 2012.

The social gaming giant announced revenues of $231M for the three-month period ending June 30, down from $332M the year before.

Zynga released six new titles in the last quarter: Hidden Shadows, War of the Fallen, Draw Something 2, Battlestone, Solstice Arena, and Running With Friends.

Zynga has had a rough time of late and is embarking on a restructuring process that will remove 520 jobs from the company.

"The next few years will be a time of phenomenal growth in our space and Zynga has incredible assets to take advantage of the market opportunity," said former Xbox boss and now Zynga CEO Don Mattrick.

"To do that, we need to get back to basics and take a longer term view on our products and business, develop more efficient processes and tighten up execution all across the company. We have a lot of hard work in front of us and as we reset, we expect to see more volatility in our business than we would like over the next two to four quarters. I'm privileged to lead Zynga and I look forward to spending more time with our players, employees and shareholders."

Zynga previously announced a profit of $4.1M for the first quarter of the year.

Discussion

176 comments
epichotcheese
epichotcheese

First he screwed the the Xbox one announcement now he joined a company that's destined to fail.

quantumtheo
quantumtheo

I played a lot of Zynga Poker and it's full of bots and rigged games... they also stopped giving away so many chips and I refuse to pay for them.  I'm glad to see that A-Hole Mattrick left M$ to join a sinking ship... didn't he see the rats running away as he walked in?

grasshopper6
grasshopper6

your loosing players cause your F*&^ing games don't work right that's why I'm done with you zynga for good 

yuenyugo
yuenyugo

that is what will happen to x1 if they are going allout casual

AlexFili
AlexFili

Casual gamers aren't loyal gamers.

Paul2004
Paul2004

Thats what happens when you dont improve the products, ppl get bored and leave for better things. If they want to survive then they need to make something original not just a clone of another game, but since they havent did anything like this yet i think their screwed :)

UnrealPro
UnrealPro

Don Mattrick is very depressed right now. lol

jchristenberry
jchristenberry

I was simply commenting on the appeal of those games and that they don't require those kinds of reflexes etc.  Thus the appeal.  The quick fix where anyone can jump in and enjoy in 10-40 minute intervals.  It was not an attempt to boast my own abilities as I am too old and too lazy to bother with competition lol.

ma_hurt
ma_hurt

I have deleted all Zynga games still attached to my Facebook.  Also blocked them from sending any future requests/newsfeeds.

Karchy
Karchy

Error in the MattriX

Monsterkillah
Monsterkillah

Don Matrrick Replacement at Microsoft

Go to youtube type steve balmer going crazy

RAMBOZOx
RAMBOZOx

Adding this guy is like throwing jet fuel on a burning building. Don is on the fast track to managing a Subway.

punksterdaddy
punksterdaddy

This is so typical!

If you remove the workforce that actually do the work, then you have nothing to produce, therefore no profit to gain. It's basic stuff!

At the beginning of the year the announced a profit and the employees must have been feeling fairly safe then?

Now however... In such a short time, they are losing REAL workers?

This must've added salt to their wounds, when they just recently hired a new CEO and what they offered him was mental! To do what exactly, not this?

Then when their wounds were already salty enough as is...

They announced that this new CEO is none other than the head guy from Xbox, after what is arguably the biggest PR disaster in gaming history!

To be honest, I'm not surprised! Well maybe a little surprised, after all I didn't expect to read articles like this so soon after Big Bad Don joined.

I say again... If the company doesn't have the resources to produce a product, then they will not last long paying Don Mattrick 10s of millions, whilst laying off some of the real workers. No chance in hell.

If this is the first of many articles related to Zynga and Don, then I predict more bad news... which isn't much of a stretch I admit. After all Don is CEO and if they are not careful...

He will be CEO of huge pile of nothingness!

(Apart from his millions.) lol

LiquidGold
LiquidGold

The 15.8 million loss must be Don's salary take out.

DamnILoveGames
DamnILoveGames

I read the title, remembered Don had joined, and couldn't help but laugh.

RossRichard
RossRichard

If they think that's bad, just wait till Don Mattrick puts his fingerprint on the company. Better start touching up those resumes, boys.

jd7904
jd7904

To be fair, Zynga was having problems long before Don showed up. I can't shake the thought that maybe Don is some kinda special agent for a secret underground gamers society trying to destroy everything that is wrong with gaming. We may never know his true identity ;-)

willzihang
willzihang

.. aye and that suit-man Mattrick joins for big money pay-offs when they go under.

deth420
deth420

guess they shouldnt have paid that jerk off so much!

mr_squibble
mr_squibble

I don't play Zynga games so I would never have been counted in the first place. I still see Zynga games as annoying Facebook timewasters, and it's going to take a lot to change that perception, probably more effort than Zynga can ever produce.

Mayleene
Mayleene

Zynga has had rough time of late, and is embarking on a restructuring process that will remove 520 jobs from the company.

"The next few years will be a time of phenomenal growth in our space and Zynga has incredible assets to take advantage of the market opportunity," said former Xbox boss and now Zynga CEO Don Mattrick.

ME: So they are removing jobs, expecting phenomenal growth and paying Don Matrick, what was it, 14M or something?  All while revenue is falling.  Sounds like a recipe for disaster.

dmastor
dmastor

Funny it going to seem like Don Matrrick fault but he just got there I'm sure he is smart enough to turn it around 

Don_Mattrick
Don_Mattrick

Man, that Don guy sound like a real CEO, he is just genius...i heard he is handsome too and has a punchable face.

Such a lovely guy.

MooncalfReviews
MooncalfReviews

*Does the "I told you so" dance in Feedbackula's face*

As we all, said, demotion and exile to Zynga.

OldKye
OldKye

@epichotcheese Well to be fair it's a chicken and the egg thing. 

Did Don go to a company that's destined to fail or was the company destined to fail cause they would make someone like Don the CEO?

Shanks_D_Chop
Shanks_D_Chop

@Paul2004 That's what happens when you focus your attention on a consumer group with a very short attention span.

91210user
91210user

@Thanatos2k Dude, don't forget the creator and former CEO took the money and run with it leaving behind zombies who are addicted to those games with no or little option to opted out. That alongside with the workers who are forced to make those games aswell! Who the hell wants Zynga on their CVs? The former CEO doesn't deserve the legacy if Zynga is making money and turns it's rep around! 

arc_salvo
arc_salvo

@RAMBOZOx 

Oh please no!  I don't want to need an online connection to eat my sandwich!  And if it goes down, I only have 1 hour to eat that sandwich before it becomes inedible if Don Mattrick takes over my local subway.

Busta
Busta

@Mayleene Sounds like big business.  When it fails they'll offer "before it's time"  "market wasn't ready".  Become a CEO of some where else maybe only get like 10 mil to start.

Busta
Busta

@MooncalfReviews Well that was all happening before mattrick got there.  This is probably a troll for the next feedbackula.