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Zynga releases Earnings Report

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Breaking News: Don Mattrick leaves Microsoft for Zynga to become its CEO

Don Mattrick has decided to leave Microsoft in favor of Zynga and become its CEO. Mattrick was with Microsoft for 6 years and has been in the middle of the public relations mess Microsoft was involved in after its failed Xbox One reveal and an even bigger mess leading into E3 with its Xbox One requirements of having to log online on the Xbox One and restrictions on video game rentals and so on. Microsoft later backed off on those main two requirements, while having the Kinect 2.0 is still a requirement and one fan boys are still using as bait to bash Microsoft with to this day.

Below is an internal memo to Zynga employees according to an article from Kotaku

To our Zynga employees, players and shareholders,

Today is a big day. I’m excited to announce that Don Mattrick will be joining us as Zynga’s new CEO and member of our Board. I wanted to let you all know why I made the decision to recruit Don and what I think it means for all of us.

Over the last few months I’ve spent a lot of time thinking about all that we have achieved together as a company. We have pioneered social gaming and helped make Play a core part of millions of people’s lives. But Zynga has so much more potential ahead, the opportunity to be an Internet Treasure and deliver on our mission of connecting the world through games.

As I reflect on the past six years, I realize that I’ve had the greatest impact working as an entrepreneur with product teams, developing games that could entertain and connect millions.

I’ve always said to Bing and our Board that if I could find someone who could do a better job as our CEO I’d do all I could to recruit and bring that person in. I’m confident that Don is that leader.

If you’re not familiar with Don, he’s an entertainment and game industry innovator who’s been making products and scaling teams and businesses for the last 30 years. Don’s had major leadership roles at Microsoft, Electronic Arts and Distinctive Software, which he founded when he was 17 years old.

Don is unique in the game business. He can execute in multiple domains – hardware, software and network, and he’s been the person responsible for game franchises like “Need for Speed,” “FIFA” and “The Sims.” He’s one of the top executives in the overall entertainment business and he’s a great coach who has inspired people to do their best work and build strong, productive teams.

He deeply understands the value of a network and the importance of creating lifelong consumer relationships. He turned Xbox into the world’s largest console gaming network, growing its installed base from 10 to 80 million and transformed that business from deep losses to substantial profits. And he has grown the Xbox Live player network from 6 to 50 million active members.

Going forward I’ll continue in my role as Chairman and Chief Product Officer. I’m excited to partner with Don and the rest of our team to return Zynga to its leadership role in inventing and growing Play as a core human experience.

Don officially starts next week; however he’ll be joining me tomorrow to host an All-Hands meeting so you can all have an opportunity to meet him and ask any questions. Please feel free as always to post your questions and vote up questions on our Zyntranet here.

Thanks and see you tomorrow.

Mark

It remains to be seen as to who replaces Mattrick at Microsoft, and also remains to be seen as to how Zynga proceeds from here after having a mess on their hands already with declining stock value.

Zynga lays off 18% of staff

 

Zynga the maker of social media games such as Cityville, Farmville, Mafia Wars, and Words with Friends is laying off 18% of its staff or 520 employees and it will also reportedly close its New York, Dallas and Los Angeles offices. Zynga has been in financial troubles since the summer of 2012 after a disastrous purchase of a game called Draw Something for $210 million and the game never took off like Zynga had hoped. After that they failed to make enough profits off of Facebook games to offset the cost of Draw Something.

Below is a memo by Zynga CEO Mark Pincus that was sent to employees:

To our Zynga Community,

Today is a hard day for Zynga and an emotional one for every employee of our company. We are saying painful goodbyes to about 18% of our Zynga brothers and sisters. The impact of these layoffs will be felt across every group in the company.

None of us ever expected to face a day like today, especially when so much of our culture has been about growth. But I think we all know this is necessary to move forward. The scale that served us so well in building and delivering the leading social gaming service on the Web is now making it hard to successfully lead across mobile and multiplatform, which is where social games are going to be played.

These moves, while hard to face today, represent a proactive commitment to our mission of connecting the world through games. Mobile and touch screens are revolutionizing gaming. Our opportunity is to make mobile gaming truly social by offering people new, fun ways to meet, play and connect. By reducing our cost structure today we will offer our teams the runway they need to take risks and develop these breakthrough new social experiences.

Because we’re making these moves proactively and from a position of financial strength, we can take care of laid off employees. We’re offering generous severance packages that reflect our appreciation for all of their work and we hope this will provide a foundation as they pursue their next professional steps.

Although these are hard decisions, I’m confident that our strategy of building leading franchises and supporting them with the largest network is the right one for the long term. I’m encouraged by our recent progress. Running With Friends is a great example of the quality player experience we can deliver, already receiving an average 4.5 app star rating from 22,000 players in less than one month after launching. Our FarmVille franchise teams continue to innovate and deliver ground breaking new social experiences like County Fair which, despite only being available on the web, is engaging 39 million monthly players.

I want to thank every one of you for the spirit, creativity and energy that you’ve invested in Zynga. You’ve reintroduced a generation of people to gaming and through these games offered them new ways to connect with their families, make new friends and even sometimes find love.

Everyone will be affected by these changes and I’m sure there will be many follow up questions to this email. If you have specific questions relating to your project or team, please talk to your manager. For any other feedback or thoughts feel free to email me directly.

Thoughts? Comments?

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