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Zynga appoints former Best Buy strategist as CFO
Social-turning-mobile game studio Zynga has brought on David Lee, Best Buy's former senior vice president of enterprise finance, to serve as its Chief Financial Officer and Chief Accounting Officer. Lee will work with Mark Vranesh, Zynga's existing CFO and CAO, over the next month to help the transition go smoothly. In a comment on Lee's move, Zynga CEO Don Mattrick said that "David has a deep understanding of business management and a sharp financial acumen that will be invaluable to Zynga's long term growth and success." Lee will report directly to Mattrick, who left his role as Microsoft's interactive entertainment business president in July 2013. Mattrick's shift was followed by the departure of several Zynga executives, as well as studio co-founder Justin Waldron. With last year's closure of OMGPOP and several Zynga studios, Lee's talents certainly seem needed at the troubled development house. [Image: Zynga]
Zynga rolling out new Farmville, Poker, Words With Friends games this year
You'd better scrounge up another soul, because you will soon owe it to Zynga, which plans to release new mobile versions of FarmVille, Poker and Words with Friends "in the coming months." Specifically, the company will launch FarmVille 2: Country Escape, New Zynga Poker and New Words with Friends. FarmVille 2: Country Escape will serve as a mobile extension of the web version of FarmVille 2. Players will be able to connect the two games, allowing them to transfer items from one to the other. Country Escape will also allow for offline play. New Poker, meanwhile, adds new social features that will simplify playing directly with friends. It will also feature adaptive difficulty, monitoring player skill levels and placing them at appropriately challenging tables. Finally, New Words with Friends updates the original formula with a built-in dictionary and detailed player profiles. And fear not if you already have a few nail-biters in progress, as current games will automatically transfer to New Words with Friends. Sadly, our request to implement lasers and random loot drops seems to have been ignored. Zynga didn't specify which mobile platforms can expect its new lineup, though promotional images (like the one above), show the games running on Apple devices. Given Zynga's prolific nature, Android ports wouldn't be surprising. [Image: Zynga]
Zynga IPO fraud lawsuit dismissed, plaintiffs plan to amend complaint
A US judge dismissed a lawsuit filed by shareholders against Zynga today. The lawsuit alleged that Zynga purposely misled shareholders about the financial state of the company, its active user count and potential business prospects in the run-up to, and after, Zynga's initial stock offering in late 2011. US District Judge Jeffrey White said the 110-page complaint failed to offer "relevant, basic factual details" worthy of the indictment against Zynga, Reuters reports. White also threw out a complaint filed against Zynga's secondary stock offering in April 2012, citing the plaintiffs in the case had no standing due to the fact none of them had purchased any of that stock. White has given the plaintiffs an opportunity to amend their complaint and re-file. Months after Zynga's initial public offering, the company was hit with an insider trading lawsuit. While all Zynga stock holders were "locked up" and prevented from selling their stock until May 28, 2012 – months after Zynga's IPO in December, 2011 – executives within Zynga's ranks used underwriters to sell their stock at $12 a share. This loophole allowed executives to profit from the stock, which made its debut at $10 a share but quickly fell. Currently, Zynga stock prices hover at $5.29 a share on the NASDAQ. [Image: Zynga]
Makers of 'Clumsy Ninja' app acquired by Zynga for $527 million, and other news for January 31
Zynga has acquired the makers behind the popular Clumsy Ninja app for a reported US$527 million, according to MacRumors. Clumsy Ninja by NaturalMotion was spotlighted by Apple at the iPhone 5 launch event back in 2012 and released a little more than a year later in November 2013. The game allows users to manipulate a ninja who responds with life-like motion and movement. It has been widely praised for its level of interactive animation and motion capabilities. Announcing the buyout, Zynga CEO Don Mattrick said: NaturalMotion expands Zynga's creative pipeline, accelerates our mobile growth, and brings next-generation technology and tools to Zynga that will fast-track our ability to deliver consumers more hit games. Bringing Zynga and NaturalMotion together is a bold step in the right direction at the right time. Combining NaturalMotion's strengths with Zynga's ability to develop breakthrough social features while sustaining live games over time, offers us a huge opportunity to redefine the gaming industry and deliver consumers blockbuster entertainment experiences. Zynga also laid off 15 percent of its workforce. In other news: The NFL has announced it is launching a new streaming-video service called NFL Now for mobile devices ahead of the 2014 season. The service will only be available in the US on Verizon due to its partnership with the NFL. In what is sure to annoy users, The New York Times iOS app now limits non-paying subscribers to 10 articles per month. However, quality content means a publication needs to make revenue through subscription fees or ads, or else there will be no article to read, so hopefully more publications will follow the NYT's example. OWC has announced that it is now selling 32 GB and 64 GB memory upgrade kits for Apple's new Mac Pro. The 32 GB kit costs US$449 and the 64 GB kit costs $859 -- a 10 percent and 31 percent savings over Apple's prices, respectively.
Zynga acquires Backbreaker football developer NaturalMotion
Social gaming giant Zynga announced the purchase of mobile game developer NaturalMotion today, TechCrunch reports. Zynga purchased the Oxford-based company for $527 million, composed of $391 million in cash and roughly 39.8 million shares of Zynga's stock. NaturalMotion's body of work includes mobile games like Clumsy Ninja and CSR Racing as well as Backbreaker, the developer's unlicensed football game based on its Euphoria engine. Published by 505 Games, Backbreaker launched in June 2010 on Xbox 360 and PS3 after its iOS and Android counterparts. The game received a sequel in Backbreaker 2: Vengeance, which was one of the first games to come from NaturalMotion's publishing division. The developer announced its move to publish digital games in November 2010. The acquisition is accompanied by news that Zynga is also laying off 15 percent of its workforce, which amounts to about 314 employees.
Captain's Log: Star Trek Online's Season 8.5 changes
Last week I wrote about a few of the revamped Federation-Klingon war missions in Star Trek Online's upcoming Season 8.5. This week a few more notable changes and teasers were released, including the news that Star Trek Online has a new Executive Producer and a Star Trek actor's voice will be featured in during the upcoming anniversary event! Pardon me sir, but haven't we met before? The game's new (and returning) EP, Stephen D'Angelo, posted a blog last week announcing his return to the command chair, along with the news that former EP, Daniel Stahl, has been reassigned to another top-secret project. Many of us had already heard about the existence of another game in development at Cryptic, so it's not so much of a surprise to hear of personnel shifts in this regard.
Zynga adds Bitcoin to payment options, Bitcoin value soars
Casual games publisher Zynga is now testing the use of Bitcoin in its games, a decision that has had a drastic (if temporary) impact on the overall value of the virtual currency. "In response to Bitcoin's rise in popularity around the world, Zynga, with help from BitPay, is testing expanded payment options for players to make in-game purchases using Bitcoin," Zynga representatives wrote on Reddit. "The Bitcoin test is only available to Zynga.com players playing FarmVille 2, CastleVille, ChefVille, CoasterVille, Hidden Chronicles, Hidden Shadows and CityVille." Despite that relatively short list, the games mentioned are Zynga's most popular, flagship offerings, demonstrating that the company has quite a bit of faith in Bitcoin, an open-source, peer-to-peer substitute for real-world cash that has achieved impressive fame in the wake of numerous international economic catastrophes. Following Zynga's announcement, the value of Bitcoin immediately jumped to a high of $1,093 per Bitcoin, according to the Los Angeles Times. It has since receded to $955.60, and continues to drop, though overall Bitcoin value remains about $50 higher than it was immediately prior to Zynga's revelation. (Image: Coin Desk)
Zynga wins in copyright suit against Mattel over Scramble with Friends
Zynga has emerged victorious from a round of battle in the High Court after Mattel claimed Zynga's Scramble With Friends app infringed on the toy maker's trademark for Scrabble. Mattel argued that the app's name was too similar to their classic boardgame, Scrabble, which is known as one of the best ways to turn the action of forming of words into a passive-aggressive, violent affair. Although the judge ruled in favor of Zynga concerning the name dispute, he did side with Mattel concerning the app's logo, stating that it "gives the impression that the word is Scrabble when one looks at it quickly." Mattel spokesperson Alan Hilowitz said the company is "disappointed that the court did not rule that Zynga should cease using the Scramble name, which Mattel intends to appeal." The ruling follows the departure of several Zynga executives, including co-founder Justin Waldron. The company also recently shut down four of its games and the website for Draw Something creator OMGPOP.
Zynga co-founder Justin Waldron strikes out on his own again
Zynga, formed in 2007, lost one of its eight co-founders today. In a post on Facebook, Justin Waldron says he'll once again pursue personal projects. "It's incredibly humbling to have worked with such a talented team. I am grateful to have had the chance to help build a company that touched so many people," Waldron writes. "Thank you to everyone who has been a part of it- both in the trenches and for playing the games." It's been a tumultuous few months for Zynga. The San Francisco-based mobile and casual games publisher closed several studios in June, then brought on former Microsoft executive Don Mattrick as new CEO. Mattrick's addition didn't quell the departures, as more executives left Zynga in July, followed by additional executive exits in August.
Solstice Arena comes to Steam
Growing older has two distinct disadvantages: responsibility and less free (game) time. This is where Zynga's mobile MOBA, Solstice Arena, really shines with its cross-platform access and average ten-minute match duration. It's the perfect answer for MOBA diehards who find themselves a little too busy for complexity and match length of the genre's bigger titles. And now the game is available and free-to-play on Steam. With the latest game updates, Solstice Arena comes to the PC today, opening up the game to a new branch of players and allowing their existing PC fans to play at the desktop. Despite its mobile roots, Solstice Arena boasts a lot of depth with its large selection of items and power ups, and the consistently (every two weeks) expanding hero selection. Each hero has multiple skills to utilize, as well as a variety of skins purchasable through the game. For those players more interested in quick games rather than depth, Solstice Arena provides a unique auto-buy feature that lets the player focus on the match instead of which items to purchase. The MOBA may not replace genre-fan favorites like League of Legends and SMITE, but Solstice does something well that other MOBAs haven't: gives players the power to take the game with them regardless of platform.
Zynga co-founder Pincus 'pretty bored with all games'
When asked what his favorite game was during a recent rooftop Q&A event in Tel Aviv, Israel, Zynga co-founder Mark Pincus declined to answer, instead noting that he is "pretty bored with all games." Asked to clarify, Pincus noted that he was previously addicted to Zynga-published social games like CityVille and FarmVille, but hasn't found a suitable replacement in recent months. "I want that addiction again," he said. Pincus stepped down from his role as CEO at Zynga in July, handing over the position to former Microsoft Interactive Entertainment Business president Don Mattrick. Pincus currently serves as the company's Chairman and Chief Product Officer. Zynga has weathered a number of setbacks recently, shutting down several games and shedding executives as it recovers from last quarter's financial losses.
Zynga settles data theft suit with former employee
Social game publisher Zynga has settled its lawsuit against former Cityville general manager Alan Patmore over alleged theft of company secrets. The terms of the settlement were not disclosed. Zynga filed the suit in October of last year, accusing Patmore of copying more than 760 files containing "confidential game designs from teams around the company" to his Dropbox account before departing for his current position as the vice president of product at rival online game producer Kixeye. "I accept responsibility for making a serious mistake by copying and taking Zynga confidential information when I resigned from Zynga," Patmore said in a statement today. "I understand the consequences of my actions and I sincerely apologize to Zynga and my former colleagues." TechCrunch reports that the two companies issued a joint statement yesterday: "Zynga Inc. and KIXEYE Inc. have reached a mutually agreeable settlement of their litigation involving Alan Patmore in San Francisco Superior Court."
Report: Three more executives exit Zynga
AllThingsD reports that three high-level executives have left social game company Zynga in the wake of changes implemented by newly appointed CEO Don Mattrick. According to unnamed sources, Zynga's chief operating officer David Ko, chief technology officer Cadir Lee, and chief people officer Colleen McCreary "will step down from their positions and leave the company as a result" of the changes. Following his departure as Microsoft's Interactive Entertainment Business on July 1, Mattrick said he was bringing the fledgling social game company "back to basics" in its attempt to recover from sweeping layoffs and other executive-level departures. Shares of Zynga were trading down 0.69% in after hours to $2.89.
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 to shutter OMGPOP website on September 30th
OMGPOP has had a rough life under Zynga's wing -- the startup fell from grace as it became clear that Draw Something was more a one-hit wonder than a sustainable profit engine. It makes sense, then, that Zynga is continuing its cost-cutting spree with plans to close OMGPOP's less successful web portal. The shutdown will start with four of OMGPOP's web games, which stop running on August 29th. OMGPOP.com will go dark a month later, on September 30th. Only mobile apps will remain after the closure, including Draw Something, Draw Something 2 and Draw My Thing. The move isn't surprising given Zynga's strengthened mobile focus, but we're still sad to see OMGPOP lose a large part of its remaining identity.
MMObility: Zynga's Solstice Arena is a solid MOBA without a farm in sight
Let's say you're mucking around with your iPad and get the nagging feeling that you'd rather be owning other players in a game of strategical combat. What do you do? Well, one of the solutions is to pick up Zynga's new MOBA Solstice Arena and start hammering away. From what I can tell, the game really isn't showing us anything new and inventive, but it has taken the usual MOBA gameplay, toned it down, tightened it up, and made it a more satisfying mobile, fast-paced experience. I am no huge MOBA fan; I'll leave that up to the experts. But that's only because it's one of many genres that I haven't as much time for as I'd like. Solstice Arena has shown me that these jump-in games can be pretty cool, though your arm might get tired from holding up your iPad!
Zynga loses more execs as it gets 'back to basics'
Zynga said goodbye to three more top executives in July as part of the company's transition under new CEO Don Mattrick. Bloomberg and Tech Crunch report a senior VP of games, VP of games and VP of Zynga's casino division all left (or were escorted out) this month. The latter was the least surprising of all, since the company announced it was getting out of the gambling business. Mattrick, who took over as CEO earlier this month after his departure from Microsoft, recently said the company would get "back to basics" and take a longer term view of products. Laying out that changes were coming he said, "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." Zynga's difficulties have hit Inception levels of problems within problems within problems. The highest profile issue was in early June when the company laid off 18 percent of its employees, while the most awkward element was the closure of OMGPOP, which Zynga had acquired just a year prior for a reported $200 million.
Zynga kills real-money gambling plans amid Q2 financial losses
Zynga has announced its second-quarter financial results for the three-month period ending on June 30, revealing a 31 percent drop in year-over-year earnings. The company reports a $16 million net loss for the second quarter of 2013, with quarterly revenue totaling $231 million. "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 Zynga's newly appointed 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." Mattrick continued: "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." Follwing the release of this quarter's financial results, Zynga announced that it had dropped its plans to build a real-money online gambling business, which was originally set to launch this year. "Zynga is making the focused choice not to pursue a license for real money gaming in the United States," the company said in a statement. "Zynga will continue to evaluate all of its priorities against the growing market opportunity in free, social gaming, including social casino offerings." Zynga laid off 18 percent of its workforce in June, resulting in the closure of its studios in Los Angeles, New York, Austin, and Dallas.
Report: Mattrick tried to buy Zynga while at Microsoft
Former Microsoft executive Don Mattrick was reportedly interested in Zynga many moons ago, not as a company to join but as one to buy. That's according to Bloomberg sources "with knowledge of the matter," who said Mattrick negotiated in 2010 to purchase the then-booming Zynga with the aim of adding social games to Microsoft's Xbox roster. Bloomberg said its sources asked to remain anonymous because the talks in question, which "ultimately fell apart," were private. Bloomberg also noted Zynga spokesperson Dani Dudeck declined to comment on the matter. Weeks after unveiling the Xbox One to the world, Mattrick left his position as president of Microsoft's Interactive Entertainment Business to become Zynga's CEO. If Mattrick chose an intense time to leave Microsoft, times are no less intense at Zynga. The company's endured a year of high-level departures and plenty of layoffs.
Zynga's new CEO reportedly discussed buying the company while still at Microsoft
Don Mattrick might still be arranging his desk stationery and getting his nameplate fitted on his new office door, but the former Microsoft Studios boss was apparently eyeing up Zynga for at least three years prior. According to Bloomberg, Mattrick discussed the idea of buying the company with founder Mark Pincus, bringing Zynga's social games (and hopefully some of its millions of users) to Microsoft's Xbox. People "with knowledge of the matter" say that talks eventually broke down, which is probably why you don't see Farmville taking up acres within Xbox Live. At least, not yet.
