Executing the cost-reduction plan CEO Mark Pincus announced in November, Zynga has shut down, pulled from the app stores, or stopped accepting new players to 11 games, with some turning off today. The gaming giant will reallocate resources to more successful titles as well as creating new ones. Along with layoffs, the shutdowns are part of the hard road to recovery for Zynga.
The San Francisco-based company had overextended itself. During its heyday on Facebook it built dozens of games, then aggressively launched mobile games as smartphones gained popularity. It didn’t seem like a problem when the company was preparing for a big IPO.
But Zynga’s share price got decimated over the past year. Investors feared it had become bloated, free virality on Facebook had been curtailed, competitors were proliferating, and the shift of Facebook users to mobile from Zynga’s stronghold on the desktop canvas would break the company…
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