Ever since it was announced that Zynga hired a new CEO, many in the industry have been wondering what is next on the agenda for this company.
After the new CEO was announced, several executives left the company in addition to several key employees. In the world of business, it is not uncommon to see key executives leave a company when a new CEO named. This is because in many cases the new CEO wants a new executive team. Although it is also not uncommon for some employees to leave a company upon the arrival of a new CEO, in this case these employee departures really impacted Zynga’s core business. This is because some who left the game had senior positions in the gaming design department. Although these employees can be replaced over time, there will be a learning curve in getting them acclimated to Zynga’s work environment and business model. Hopefully the learning curve time in this instance can be reduced, because Zynga really needs to start launching new projects and generating revenue quickly.
There was also a recent announced that the company had a made a decision not to seek a license for online gambling. This decision surprised many in the industry. Some felt that the company should have at least given online gambling a try just as a way to re-establish the brand and bring in some much needed cash. In addition, some Zynga investors were upset by this decision because they felt venturing into online gaming would help to increase the company’s stock. Despite all this, the current executive team at Zynga doesn’t feel that venturing into online gambling is a good strategic move for the company at this time.
Now that the company has officially stated that it will not get involved in online gaming, investors and others wonder if social gaming is strong enough to generate enough revenue and customers. Investors feel that they have a right to have this concern, since Zynga’s social games are currently under performing.
No one seems to know what Zynga needs to do, but most agree that they need to do something. This includes developing new games that will attract more online gamers. In addition, some industry analysts feel that Zynga needs to work on improving its image if it wants to attract the best industry talent. If this doesn’t happen, the company will start losing talented employees to other tech companies.
It will definitely be interesting to see what happens at Zynga over the next few months. Hopefully it will be something strong enough to help the company regain its place in the online gaming industry.