Following on from the mass layoffs at casual gaming company/addiction farm Zynga, a disgruntled former employee has taken to Reddit to reveal the truth behind the company. "former_zyngite" – who posted a picture of a letter addressed to "departing employee" as proof they are who they say they are – offered themselves up for an AMA. Here's a selection of their answers:
What percent of users actually pay real money in Zynga games?
Depends on the game, but on average I think it's about 5%. Maybe less.
Thinking about it though, that's a lot of people and a lot of money.
The big games deal in Millions of DAU (Daily Average Users). If 3 million users pay an average of $0.20 you're getting $600k a day!
That's huge numbers!!
Do you think they have a sound business strategy? i mean its doubtful if they are laying off so many people but i just assumed they would be making a killing. edit removed second question because i all of a sudden learned to read haha.
Oh hell no. Their business strategy is terrible.
Their major issues are the inability to adjust to the changing market. They did great when Facebook gaming was on the rise, but now it's declining and Mobile is on the rise. They're trying to change over, but employ too many of the same game development "best practices" that were developed for Facebook games. These just don't translate to the mobile market, which is why they're suffering in that market.
There's also lots of other issues internally.
A lot of micro-management from the top down that stifles the creativity and hinders the production of many games.
An over reliance on every game being a blockbuster hit which makes the fun aspect of games suffer while making the money grabbing tactics all too transparent to the users.
And a serious lack of foresight over all. Too many major decisions are quick reactions to sudden changes in the market. If some games jumps to the top of the Top Grossing charts then everyone need to drop everything and change to follow it. Which wastes time, makes for bad design and ultimately puts projects behind schedule. It just means they're always late to the party, and whatever game they're trying to compete with has already faded away by the time their own version hits the market.
They rely too much on reacting to what is making money now, and too much on their own data. They don't strive to make anything new or innovative and that's no way to excel in the games market. You need to lead the pack, not try emulate the best practices of top games with the hopes that you can out perform and already established IP.
Do you know any dirty secrets or scandals about the company ?
Nothing that probably hasn't already been reported. I think the worst during my time was the law suit against the c-staff for insider knowledge. When the company went public the shares were $10. At their peak they were $15 and the c-staff had a special clause that allowed them to sell early. They sold something like 15 or 20% of their shares when the stocks were at their highest. By the time employees could sell for the first time it had dropped to $8 a share. After that window closed, the stock price had dropped to $4 or $5 by the next time employees could sell. I guess the investors were pissed that the top brass made out like bandits and everyone else got screwed.
How much longer will Zynga be around for?
Hard to say. At this rate, I'd give them another 2 to 3 years. They make money and have a lot in the bank. But they also throw away money like you wouldn't believe.
If they actually manage to change their strategy and start putting out some big hits, they could be around a lot longer.
What do you think the odds are that they do change their strategy and end up staying around longer?
I'd give them 10:1. The CEO is hellbent on believing that their current course is the correct course.