Social games developer Zynga has fallen on hard time lately, and we thought the company was beginning to see some recovery. Unfortunately, the company has stumbled yet again, as Zynga has posted more losses. This has resulted in the company’s stock dropping and the delay of several new games. Zynga had made plans to release several new titles this year, but drop in profits has delayed them.
One of the new titles was a revamped version of Zynga Poker. Since new social poker apps have entered the market recently, Zynga’s new app would have brought the company in line with the latest trends. Now, this app has been delayed until next year. Another game that will be delayed is Zynga’s first sports title.
The company partnered with the NFL to release a social American football game, but this title will not be released this year as was previously planned. Several mobile games have also seen their release dates pushed back. While it seems like a bad sign that Zynga has delayed the release of new games, CEO Don Mattrick states that it is a wise business decision.
He says that the company “decided that the best choice for the medium and the long term was to move that revenue effectively from 2014 to 2015?. Unfortunately, this has resulted in a significant drop in the company’s price on the stock market. Shares were down 9% after Zynga announced that its games will be delayed until next year. Still, Mattrick is confident that Zynga will be able to recover from its recent financial troubles.
"I feel like we're making progress," he says. "We're doing the heavy lifting right now, and the heavy lifting is investment and being disciplined and finding the right balance of shift dates."
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