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EA's Peter Moore: Zynga has "dropped to their knees"

EA's Peter Moore: Zynga has "dropped to their knees"

Thu 02 Aug 2012 2:57pm GMT / 10:57am EDT / 7:57am PDT
BusinessPublishing

The EA COO compares Zynga to a runner "hitting a wall"

Zynga's struggles continue, as the stock can barely manage to hit $3.00 (as of this writing, it's trading at $2.75), and the rapid plunge of the leading social games company certainly isn't bringing any tears to Electronic Arts. If anything, EA COO Peter Moore appears to be relishing the news.

Speaking to Bloomberg in a video interview (via Business Insider), the EA executive commented, "To use, if you will, an Olympic analogy, we're competing in the decathlon and if we miss in one event, we've got nine others we can make up on. Zynga is running a marathon. They just hit the wall and dropped to their knees."

Moore emphasized the point that EA's business is more diversified than Zynga's and the company has a number of top brands across all sorts of platforms in the mobile, social, PC and console sectors. So while there's a slowdown in social growth, it's not hurting EA as much as it is Zynga. Moore added that "diversification into mobile is where we're seeing the real growth."

Finally, Moore touted EA's mobile dominance and noted that Zynga "needs to move quicker to mobile - we've been there for many, many years." He speculated that Zynga's stripping responsibility away from former EA man John Schappert is likely a result of the firm's need to step up its mobile efforts.

4 Comments

Whilst I am no great lover of Zynga and it's tricks, but this does smack of some bitterness from Moore.

Is Zynga the evil of all things social gaming? no it's not. But it's certainly not doing a great deal of things right at the present time to change many "customers" view point that the "customer" is the most important part of it's business model and recent stories emerging that Pincus and his merry band of top executives took to selling stock at $12 per share resulting in giving themselves over $500million. That's over $500million taken out of the company, before an IPO? Just does not sit well with "customers" and more importantly potential investors, even worse, if reports are true [and now filed] this money was taken in a way that suggests insider dealing and is proved right, the consequence could be enormous to Zynga as a company and it's future.

It (Zynga) gives a solid message of "put cash above everything else" with it's mindless, and at times egotistical, approach in acquiring buisness revenues Zynga can blame no-one but itslef that many users just don't believe in any of it's marketing or words coming out of Zynga these days.

Edited 1 times. Last edit by Kevin McLaren on 2nd August 2012 5:29pm

Posted:2 years ago

#1

Bruce Everiss Marketing Consultant

1,692 594 0.4
Selling the stock did not take money out of the company. Not a penny. All it did was to transfer part of the ownership of the company from one group of people to another group of people. And customers do not give a damn who owns the company, they just want compelling gaming experiences, which Zynga are brilliant at providing.

Also, to quote Gamesindustry International "Zynga's monthly active users (MAUs), one of the key metrics that's emerged as a measure of success in the social age, are up 34 per cent year on year, after all - rising from 228 million back in 2011 to 306 million in the same period in 2012."

This is success beyond Peter Moore's wildest dreams.
EA's financial performance has been utterly terrible for some time now and taking a pop at a far more successful competitor is no way to try and deflect attention.

Posted:2 years ago

#2

Carl Silvers Researcher, Electronic Arts

22 25 1.1
"EA's financial performance has been utterly terrible for some time now"

If by "utterly terrible" you mean "making money" Bruce, then I completely agree. :)

Posted:2 years ago

#3

Bruce Everiss Marketing Consultant

1,692 594 0.4
@Carl Shivers

Like a P/E of over 60 isn't terrible.

Posted:2 years ago

#4

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