Boston, MA 10/21/2013 (wallstreetpr) – Social games services company Zynga Inc (NASDAQ:ZNGA) is losing investors’ confidence rather faster than anticipated. The 2007 company which develops markets and operates social games on platforms such as Facebook has continued to lose its popularity on the market to the chagrin of the investors.
The major losing grounds for ZNGA are Facebook and mobile platforms. In the social games maker’s Q2.13 booking, Facebook as a platform contributed around 70%. This was particularly due to DAU and MAU gaming series. However, fortunes from Facebook platform have assumed a downward trend as reflected in the game maker’s books lately.
The mobile platform has also turned to be a red-hot zone for the social game maker as its standing on mobile games ranking continue to take a slide. An ambitious revamping is obviously needed to reenergize ZNGA if investors are to have any value for their money.
So far, investors have indicated their support for job cuts at the social game maker as a way of helping the company jettison burdens which are causing it to sink in the deep-seas of online gaming market competition. However, this appears complicated as the company also needs to strengthen its technical department with fresh talents to help it rebound.
Layoffs at ZNGA seem to be the most viable option now in the cards for the company, especially considering that its rival King has also done this during its trying moments. Basically, ZNGA whose market capitalization now stands at $2.95 billion after noting a surge of 2.51% in its share value at the close of last week’s trading, Friday, October 18, requires first to stabilize its revenues, after which it should start working on how to grow the same over the next few months.
The exit of the company’s CEO and co-founder Mark Pincus with remarks that he “is now bored with games” hasn’t served well to lift investors’ confidence. However, there are hopes that the new CEO Don Mattrick, formerly in Microsoft, could help revitalize the skinning social games provider.