Zynga overextended itself and is cutting costs – something a lot of companies are doing now (or in the near future).. cheap money (artificially low interest rates) encourage overextension. It feels good in the short term but is bad in the long term. Zynga shut down their Japan office.

TechCrunch – games are getting shut down – reminds of when AWABA was shut down when I was a kid. It was sad. It happens. It’s a cycle. We ought to expect it by now.

Zynga Inc. (ZNGA) is at $2.45 right now – still a $1.92B company. But while games make a lot of money, they don’t make THAT much. They support a lifestyle business – not a big company. It’s a hits-based industry. You need to keep your overhead low – ridiculously low – like $0 low.

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