Posted Friday, Oct. 5, 2012, at 1:03 PM
Photo by Justin Sullivan/Getty Images
Farmville is in the dust bowl and the conditions seem to be getting worse. Online game-maker Zynga announced it will post a loss in the third quarter and also cut its revenue forecast, and the company’s stock promptly plunged to all-time lows—down almost 75 percent since Zynga went public last December.
The company’s fortunes are being hurt by people migrating away from Facebook, the primary home of Zynga’s games, and spending more time on mobile devices. But one analyst put it more bluntly, “their bread-and-butter games are not working too well.”
Zynga CEO Mark Pincus says he’s planning “targeted cost reductions.” The company has already lost eight senior managers since August; which has to make some wonder how much longer before it’s time to pack up the plantation.