Zynga to Shut Down 4 More Major Games

by Christopher Freeburn | April 25, 2013 11:27 am

Zynga to Shut Down 4 More Major Games

zynga tshirt 630 300x200 Zynga to Shut Down 4 More Major Games[1]Shares of game developer Zynga (NASDAQ:ZNGA[2]) dropped more than 6% in Thursday morning trading after the company moved to shut down more under-performing games[3].

On Wednesday, the company said it will shutter Empires & Aliens, The Ville, Zynga City and Dream Zoo. The latest closures came after a wave of other game shutdowns in recent months, VentureBeat noted.

During the most recent quarter, Zynga beat analysts’ forecasts by reporting a GAAP profit of $4.1 million on revenue of $263.5 million. In the same period last year, the company lost $85 million. However quarterly revenue was down sharply from $320.9 million last year.

While it closes some games, Zynga is launching others. The company recently unveiled Draw Something 2. It is also developing a new came called Running With Friends.

Zynga is moving to develop more games aimed at mobile devices. Late last year, it shut down almost a dozen Facebook (NASDAQ:FB[4]) games and ended its contract with the social media giant[5].

Earlier this month, video game maker Electronic Arts (NASDAQ:EA[6]) announced that it would shut down three Facebook games[7] – SimCity, Pet Society and The Sims Social – in June.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/12/zynga-tshirt-630.jpg
  2. ZNGA: http://studio-5.financialcontent.com/investplace/quote?Symbol=ZNGA
  3. moved to shut down more under-performing games: http://venturebeat.com/2013/04/24/zynga-to-shut-four-more-weak-games-including-the-ville/
  4. FB: http://studio-5.financialcontent.com/investplace/quote?Symbol=FB
  5. ended its contract with the social media giant: http://investorplace.com/ipo-playbook/its-splits-ville-for-zynga-and-facebook/
  6. EA: http://studio-5.financialcontent.com/investplace/quote?Symbol=EA
  7. would shut down three Facebook games: http://investorplace.com/2013/04/electronic-arts-to-end-three-facebook-games/

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