GAMES PUBLISHER Zynga announced that it has given up trying to launch real money gambling games in the US.
Zynga recently hired ex-Microsoft Xbox chief Don Mattrick as CEO and one of his first acts as leader of the troubled games publisher was to report the firm's second quarter 2013 financial results. The firm's financials have been heading in the wrong direction for several quarters, and this time Mattick had to report a $15m loss. Possibly more painful, however, was the firm's decision to stop trying to launch real money gambling games in the US.
Zynga had been hoping that running real money gambling games online would help it recover from plummeting revenues and user participation. However the firm said, "Zynga is making the focused choice not to pursue a license for real money gaming in the United States," which sent its shares falling in after hours trading.
Zynga said it is evaluating what the firm terms "social casino games" in the UK, meaning that it isn't certain whether the firm will go down the possibly lucrative route of offering UK gamers the chance to play with real cash.
Mattrick told investors to expect "more volatility" in the next two or three quarters. He said, "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."
Zynga is best known for games such as Farmville and Words with Friends, otherwise known as Scrabble, but the problem with most of its titles is that gamers usually tire of them within a couple of months, if not a couple of minutes.
The firm has also been rocked by a number of scandals including insider trading and, given Mattrick's forecast, it looks like the firm has a lot of work to do in order to stabilise its business. µ
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