Analyst: Zynga Need to Ditch CEO Don Mattrick - News
by William D'Angelo , posted on 16 February 2015 / 3,512 Views
Zynga CEO Don Mattrick, who was the former Xbox head, need to be let go, according to a paper released by BTIG analyst Rich Greenfield and reported by Polygon.
The paper is called "Zynga Needs A New Leader – Time for Don Mattrick To Go." It criticizes Mattrick for purchasing game developers like Natural Motion for $527 million and expanding into new genres.
"Why not dramatically slash overhead, fire the vast majority of Zynga’s employees and milk the substantial underlying profits Zynga generates?" asked Greenfield. "Your core franchises have and continue to generate meaningful earnings, yet that is being completely offset by your attempts to find the next hit games in categories where Zynga has no underlying expertise."
"I think what’s really surprising about the company right now is that they appear to be making the same mistakes," added Greenfield in an interview with CNBC. "Launching games too quickly, not doing enough consumer research on their games and pushing them out — the same mistakes that [former CEO] Mark Pincus was making when he was leading Zynga."
"And Don Mattrick was supposed to be brought in — despite not having any experience in mobile gaming, he had been in the gaming world, certainly at Xbox and has a long history in console gaming. He was supposed to be the one who fixed all this, and yet Zynga seems to be stumbling and making the same mistakes all over again."
Don Mattrick left Microsoft in July 2013 and was hired by Zynga. The company recently reported they lost $2226 million in the fiscal year 2014.
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A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. Outside, in the real world, he has a passion for the outdoors which includes everything from hiking to having received his B.A. in Environmental Studies. You can contact the author at wdangelo@vgchartz.com or on Twitter @TrunksWD.
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$2226 Millions DAFAQ!!
if only there was a different word for 1000 million.... or the writers 2 key wasn't sticking :D
It's very damning but makes complete sense. Making a hit mobile game is as much about luck as anything, and the developers of Angry Birds, cut the rope, fruit ninja,have not made anything else that is anywhere near as popular.
Geez 226 Mil is an ugly number 1/4 of a Billion........
Expanding into new genres is going to be necessary. Farmville isn't going to make money forever.
Don Mattrick and the Chocolate Factory
LOL he just got there less than a year ago xD . He is NOT the problem with Zynga.
