Quantcast
Zynga shares plummet, lawsuit coming, gravy train crashes - Destructoid




Game database:   #ABCDEFGHIJKLMNOPQRSTUVWXYZ         ALL     Xbox One     PS4     360     PS3     WiiU     Wii     PC     3DS     DS     PS Vita     PSP     iOS     Android


Zynga shares plummet, lawsuit coming, gravy train crashes


10:00 AM on 08.01.2012
Zynga shares plummet, lawsuit coming, gravy train crashes photo



Farmville creator Zynga is ... buggered. After a few years of living large and sucking as much cash as it could from Facebook users, the proudly "evil" company's bottom is well and truly falling out. Share prices have been falling for the past few weeks, today plummeting to a new low of $2.95.

Taking the fall is former Xbox man and current COO John Schappert, who has been stripped of his authority over Zynga's game business, having to hand the reigns over to David Ko and Steve Chiang. 

Oh, but it doesn't end there. The company is also facing a class-action lawsuit, where it's alleged that higher-ups were insider trading. Zynga bigwigs, including CEO Marc Pinkus, are said to have sold over $500 million in stock three months before the crash. Five legal firms are investigating, and "hundreds" of investors may be included in the suit. 

This was pretty much bound to happen, really. Zynga poured all of its efforts into exploiting an audience that, at best, has the attention span of a magpies with ADD. While casual gamers are an important demographic, they're not reliable in the long term -- especially Facebook users, who by nature are bored of everything and require constant fresh stimulation.

When all your money is made from optional purchases by faddy consumers ... well, you're asking for trouble.






Comments not appearing? Anti-virus apps like Avast or some browser extensions can cause this.
Easy fix: Add   [*].disqus.com   to your software's white list. Tada! Happy comments time again.

Did you know? You can now get daily or weekly email notifications when humans reply to your comments.






Facebook

10:00 PM on 07.15.2014
Grift: Oculus cancels Rift pre-orders for people trying to sell them

The second version of the Oculus Rift is shipping, albeit not quick enough to meet demand. Over 45,000 have been pre-ordered. Only 10,000 of those are expected to ship this month. Meanwhile, enterprising capitalists who got a...more



6:30 PM on 07.01.2014
The Legend of Heroes: Trails in the Sky SC 'delayed a bit'

The Legend of Heroes: Trails in the Sky SC gets delay news in the form of a Facebook response to a fan. When asked about the release date, XSEED responded:  Nobody wants that game released ASAP more than us, but afraid ...more



5:00 PM on 05.23.2014
Looks like Samsung wants to get into the VR headset space

Engadget is reporting that Samsung is getting into the virtual reality headset business. The VR headset is being developed by Samsung's mobile division, and it's set to be announced sometime this year. Apparently there's some...more



View all Facebook






Back to Top




All content is yours to recycle through our Creative Commons License permitting non-commercial sharing requiring attribution. Our communities are obsessed with videoGames, movies, anime, and toys.

Living the dream since March 16, 2006

Advertising on destructoid is available: Please contact them to learn more