I am surprised Don Mattrick would be let go, especially since most of the projects he oversaw have not been released yet. But given that we're dealing with Mark Pincus, the founder famous for wanting control, I guess this was expected.
To those who are unaware, Mattrick was primarily let go for his failure with Zynga Poker. The updated version killed user engagement so badly, the game may never recover. Zynga Poker is one of the company's most interesting assets, given that online gambling will be legalized in the next few years.
Mattrick represented a shift in Zynga: instead of low-brow clones of competitors, Zynga would focus on high-polish triple AAA games. It was a daring strategy, since Zynga's reputation single handedly scared away many amazing game designers. You can copy a farming game easily and get decent results if you have a team of data analysts. It is quite difficult to copy a great hardcore RTS and get good results. Zynga spent 500 million USD to buy NaturalMotion, an excellent game developer in this space. They spent a ton of money on their slots game, acquiring valuable IP licenses + great slot designers. They spent a ton of money getting the Tiger Woods license. Etc etc.
Pincus has never shown the ability to manage high quality game designers. He has only showed the ability to manage MBA-types, who aren't considered the most creative of the bunch. Mattrick would have been a better leader in this vertical. Any midcore/hardcore gamer would rather want the XBOX CEO over Pincus.
What does this signal for Zynga's future?
1) All of Mattrick's high-polish products are now under the leadership of someone who isn't as geared towards this vertical.
2) Increased importance for social casino and real money gambling for the company- The fact that this is the main reason why Mattrick got fired highlights Pincus' goal of dominating real money gambling.
#1 is a negative signal, #2 is a positive signal. I'd agree with the rest of the market and say this is a net-loss for Zynga.
I take this as another example of a pivot that never made sense. It's like Mc Donalds trying to sell high end food under their brand. Why not start a separate daughter company for that? In most industries this is a common practise, it seems like Gaming still has to learn that.
I seem to remember seeing this someplace before, where an executive on the upslope is fired and the new guy gets the credit for good new projects soon to release.
Exactly. If I were Pincus and was a rational self-interested agent, I would've gotten rid of Mattrick at this time, and then reap the benefits of Mattrick's game end of the year. If they succeed? Pincus is a genius. If they fail? Mattrick was an idiot. Can't lose.
To those who are unaware, Mattrick was primarily let go for his failure with Zynga Poker. The updated version killed user engagement so badly, the game may never recover. Zynga Poker is one of the company's most interesting assets, given that online gambling will be legalized in the next few years.
Mattrick represented a shift in Zynga: instead of low-brow clones of competitors, Zynga would focus on high-polish triple AAA games. It was a daring strategy, since Zynga's reputation single handedly scared away many amazing game designers. You can copy a farming game easily and get decent results if you have a team of data analysts. It is quite difficult to copy a great hardcore RTS and get good results. Zynga spent 500 million USD to buy NaturalMotion, an excellent game developer in this space. They spent a ton of money on their slots game, acquiring valuable IP licenses + great slot designers. They spent a ton of money getting the Tiger Woods license. Etc etc.
Pincus has never shown the ability to manage high quality game designers. He has only showed the ability to manage MBA-types, who aren't considered the most creative of the bunch. Mattrick would have been a better leader in this vertical. Any midcore/hardcore gamer would rather want the XBOX CEO over Pincus.
What does this signal for Zynga's future?
1) All of Mattrick's high-polish products are now under the leadership of someone who isn't as geared towards this vertical.
2) Increased importance for social casino and real money gambling for the company- The fact that this is the main reason why Mattrick got fired highlights Pincus' goal of dominating real money gambling.
#1 is a negative signal, #2 is a positive signal. I'd agree with the rest of the market and say this is a net-loss for Zynga.