FARMVILLE IS NOT CLOSING: RUMOR DEBUNKED!


NOT CLOSING  FARMVILLE IS NOT CLOSING NOR IS ZYNGA AS A COMPANY
Today Zynga the maker of Farmville announced some cost cutting measures and the layoff of 18% of their workforce. Since that  release the web has been awash with RUMORS that Farmville may soon disappear. Rest assured that these are simply sensationalism, trolling and nonsense. The rumors are FALSE. Check out the post below to see how we know that for sure.  Please do like and share with friends if you find the post helpful.

Rumor #1

Zynga is losing money at a rapid rate and is in danger of shutting down completely.

Status : False!

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As a publicly traded company, on the NASDAQ stock exchange, Zynga is required by law to report accurate earnings results to the public and the U.S. Securities and Exchange Commission. Zynga had a series of negative quarters in 2012. That is not because they were not earning money, but because of a heavy investment in development costs and acquisitions for their future. They have now scaled back on some of those and in the first quarter of 2013 they made a 4 Million Dollar PROFIT. The last quarter of 2012 finished well ahead of Wall Street expectations as well. You can read their quarterly earnings report for Q1  here.

Rumor # 2

Zynga is closing or has closed multiple offices and laid off many workers and is going out of business..

Status SEMI TRUE!

While Zynga has closed several offices and laid off workers, this is NOT a sign that they are going out of business. It is very normal restructuring that all companies do. Many of their games are or were under performing and they are eliminating those games and laying off the workers responsible for those games.  They are still actively developing new games but with less of a fast pace and more of a focus. They are NOT GOING OUT OF BUSINESS.  Even within the latest press release announcing layoffs. Zynga has reaffirmed its commitment to Farmville. You can read the press release in its entirety here. 

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They are laying off people in connection with underperforming games that are not profitable. Farmville is profitable, it is not going anywhere.

FARMVILLE IS BASED IN THE SAN FRANCISCO COMPANY HEADQUARTERS AND IS NOT PART OF THESE LAYOFFS!



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Rumor #3

Farmville is closing

Status : FALSE

Nothing could be further from the truth. In fact, Farmville is the jewel in Zynga’s crown.  The Q1 quarterly report included the following highlight

“Zynga continued to demonstrate the power of its franchises, and the combined bookings for FarmVille and FarmVille 2 grew year-over-year.”

Zynga CEO Mark Pincus has also been quoted by numerous news sources as making his strongest commitments for the company to austerity (cost reduction) and to FARMVILLE

“Zynga's bottom-line could be shored up through a more streamlined pipeline, Pincus argued. Since FarmVille first launched, it has gradually honed its development process to reduce the resources and development costs required for each significant update by more than 80 percent, he said.

"As long as our players are interested in farming, we'll offer a Farmville," Pincus said. "It could be the Seinfeld of our era in gaming, a multi-season show that has a quality and a consistency that you can rely on."

Zynga declined to address its game pipeline. Bing Gordon, an investor at venture capital firm Kleiner Perkins Caufield & Byers and a Zynga board member, said he has repeatedly nudged the company to develop FarmVille 3.”

You can read the Yahoo news version of the story here.

CEO Mark Pincus again re-affirmed the commitment to Farmville in a blog post dated the same day as the press release

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You can read the blog post written by Mark Pincus  in its entirety here.


Final Thoughts from our founder Locke Michaels - Restructuring is a positive step to ensure that Zynga AND Farmville will be around for a long time. 

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  1. maybe this is why we no longer have live support so they can save money and leave us floating in the wind with all the problems of the game

    ReplyDelete
    Replies
    1. I stopped spending money on this game, it never works right, you lose stuff, and I burned out on quests and the repeated gifts that I've already mastered...... yawn!!! the game got boring and ridiculous with floating unicorns, pega=crap and stuff that has nothing to do with farming

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