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Zynga shutting down four games, OMGPOP site
Zynga's slash and burn to a more manageable and potentially profitable size continues with the closure of four games and the OMGPOP.com site. OMGPOP created former phenomenon Draw Something, earning it the notice of Zynga, which swiftly purchased the company for approximately $200 million just over a year ago. OMGPOP games Cupcake Corner, Gem Rush, Pool World Champ and Snoops will come to a close on August 29; OMGPOP.com will officially cease to exist on September 30, 2013, three months after the studio's closure in June. OMGPOP was impacted by the same cuts that saw Zynga's headcount reduced by 18 percent. Zynga notes: "This decision will not affect Draw Something, Draw Something 2 or Draw My Thing - you will be able to continue playing after OMGPOP.com has closed." The social games giant is currently reinventing itself under the direction of new CEO Don Mattrick, former head of Microsoft's Xbox division.
Zynga closes OMGPOP, the creators of Draw Something
Zynga announced yesterday that it was laying off about 18 percent of its work staff, or about 520 employees, which is bad news for any company. But it turns out that this set of folks includes most of the crew of OMGPOP, the company Zynga acquired for its uber-popular app Draw Something last year. It was only last March that Zynga picked up OMGPOP for $200 million after Draw Something became a big hit, and while the app did both grow and spawn a sequel under Zynga's oversight, OMGPOP's CEO Dan Porter left the company just a few months ago, and now most of the original staff is out of a job. Or at least on to the next one -- one former Zynga staffer says to TechCrunch that most of the team members "had new jobs lined up by the time they left the building anyway." It's true that the OMGPOP acquisition was extremely public, and while Draw Something was always popular, it wasn't hard to see that the audience lost a lot of engagement after that initial acquisition. I don't think this is the death knell for Zynga just yet -- the company has been cutting titles, but still has successful games running, and it's working on more to come. But this is definitely a wakeup call that the once huge social and mobile juggernaut needs to do things a bit differently in the future.
Draw Something 2 available with new words, drawing tools
Zynga's Draw Something, the incredibly popular drawing game for iPhone, now has a follow-up: Draw Something 2. It's available now on the US App Store as an ad-supported free download or premium, ad-free version at US$1.99. It was just in February that Zynga VP and General Manager, Dan Porter, said there were some exciting things in the pipeline for Draw Something, and we now know what he was talking about. Draw Something 2 has many new additions and features, including 5,000 new words, more drawing tools and over a hundred colors, plus a social feed and "Galaxy," where users can store their favorite drawings. Draw Something was originally developed by OMGPOP. It became hugely successful within a very short time and was soon acquired by Zynga. It eventually leveled off in popularity, but we're sure Zynga is hoping to re-ignite its popularity with Draw Something 2. [Via The Verge]
Zynga sees revenues and users decline in Q1, Draw Something 2 out today
Social game publisher Zynga has revealed financial results for the first quarter of 2013. The company posted revenue of $263.5 million, a significant decline from the $320.9 million posted during the first quarter last year. Zynga saw its user numbers decline as well. Daily active, monthly active and monthly unique users fell across the board. Despite these losses, Zynga recorded a net income of $4.1 million, as compared to a $85.3 million loss during the same period last year. The company identified FarmVille 2 as "a breakout hit with daily audience engagement and bookings exceeding the company's expectations." For the second quarter, the publisher is predicting a net loss of $36.5 million to $26.5 million. Zynga posted a huge loss of over $200 million for 2012, and today's results follow a string of rocky news for the company, including high-profile departures, game shutdowns and multiple studio closures or consolidations. Earlier this year, J.P. Morgan sold the majority of its stock in the company. At the very least, Zynga is looking to keep its current stable of executives on board with the promise of larger salaries. Alongside its financials, Zynga announced that Draw Something 2 is launching today. Dan Porter, former CEO of Draw Something studio OMGPOP, left Zynga earlier this month.
Draw Something 2 is coming soon
No, that's not a threat; it's a fact. Just about a year after Zynga bought developer OMGPOP, CEO Dan Porter has confirmed on Twitter that a sequel to Draw Something is coming soon. Porter says the new version of the game will feature "new ways to draw and connect," and TV host Ryan Seacrest has been posting screenshots that reveal new paint swatches and a number of other additions and upgrades. Don't worry: There's also a price-tag button right on the top bar, so the app will undoubtedly feature lots of in-app purchase options. The original Draw Something (which was released on mobile platforms and Facebook) saw its daily users drop quickly after the Zynga acquisition, but OMGPOP recently announced the game has seen over 100 million downloads and 11 billion drawings in the year since release.
