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EA’s Peter Moore: ‘Zynga is like a runner hitting a wall’

Thursday, 2nd August 2012 17:56 GMT By Dave Cook

EA’s Peter Moore has spoken out regarding plummeting Zynga stock, stating that the company is running a marathon, but has ‘hit a wall’.

In a Bloomberg interview, EA COO Peter Moore has expressed concern over Zynga’s unfortunate circumstances.

“To use, if you will, an Olympic analogy,” Moore stated, “we’re competing in the decathlon and if we miss in one event, we’ve got nine others we can make up on. Zynga is running a marathon. They just hit the wall and dropped to their knees.”

Moore’s analogy explains that EA performs well due to having IP across multiple formats, aimed at a diverse range of markets, and suggests that Zynga has boxed itself in too tight.

Zynga’s stock dropped as low as $2.75 today, and has struggled to surpass the $3.00 mark.

Watch the full Peter Moore interview at Bloomberg here.

Thanks GI.biz

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13 Comments

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  1. GrimRita

    And how is EAs stock Pete?

    #1 2 years ago
  2. DSB

    EA is like a long distance runner who can’t find the finish line.

    They’ve sunk so many millions (Well, billions really) into social, fired so many people as a result, and they’re still practically nowhere.

    Popcap was an act of desperation. If you can’t beat ‘em, buy ‘em.

    Not that Zynga isn’t the world’s most awful company, and that I shan’t rejoice when we’re finally rid of their pestilent existence, but EA have been chasing the same white elephant for the better part of a decade, without ever stopping to ask themselves whether it actually exists.

    It’s a fuck-up of uDraw’esque porportions. They should be trying to bury it, instead of forcing comparisons to the guys who actually have made some money.

    #2 2 years ago
  3. GrimRita

    Zyngas only problem was that it put all its focus on Facebook. Now that Facebook users are mostly using mobile, bang goes their player base. They need to shift their focus to mobile and bring it all back.

    #3 2 years ago
  4. DSB

    Or just go to Hell, where they came from.

    A company that does nothing but steal other peoples ideas doesn’t deserve to exist. They’re common scum.

    You can say a lot about EA, but at least they’re not Zynga.

    #4 2 years ago
  5. freedoms_stain

    I played a Zynga game once, it was so horribly coded I never played it or any other ever again.

    #5 2 years ago
  6. Ireland Michael

    @2 Hasn’t their Playfish acquisition been a huge success though?

    #6 2 years ago
  7. DSB

    @6 Not even a little bit.

    http://www.businessinsider.com/the-final-sign-that-eas-400-million-acquisition-playfish-is-the-next-myspace-2012-6

    http://www.businessinsider.com/as-playfish-crumbles-ea-is-hands-off-for-its-other-gigantic-13-billion-acquisition-2012-6

    They basically bought the company for twice what it was worth, when EA were already in trouble, and literally the next day they made it clear that they would be slashing and burning 1500 positions across the company, including Playfish!

    When you hold that up against making a half a billion dollar acquisition only 24 hours in advance, I think you have a pretty complete answer for why no one believes in EA at the moment.

    A company that stares itself blind at a market that they don’t have, and then fails to capture it just isn’t worth investing in. If something’s bad for you, just let it go. Instead they’ve dug a deeper hole.

    #7 2 years ago
  8. Ireland Michael

    Both of those links have a serious tone of fatalistic assumptions founded on some very strenuous observations, with very little in the way of solid numbers to back up the problems.

    Last time I checked, The Sims Social was raking in a tonne of money, and I distinctly recall EA themselves pointing out that their profits in the social sector have been going through the roof. I’m fairly positve they’ve already made the money back on their investment.

    SimCity Social seems to be doing pretty well for itself to.

    Even if they’re not the top of the leaderboard, they’re still going bloody well for themselves.

    #8 2 years ago
  9. DSB

    @8 The Sims Social has been a rare and outstanding hit for them, but if you look at the latest games from Popcap, they really aren’t generating anything.

    http://venturebeat.com/2012/07/31/ea-bullish-on-mobile-as-social-games-slow-down/

    They are making money on social, and getting in on Popcap won’t hurt their revenue there, but it still doesn’t compare to how much they’ve thrown away to get there, and it still isn’t a major source of profit for them.

    Why spend so much to make so little? There’s a reason why people aren’t confident in what Ricitiello is saying right now. The growth is slowing, people are getting bored, and he’s saying they just have to expand.

    #9 2 years ago
  10. Ireland Michael

    @9 Social games always have a limited lifespan. The free-loaders (literally =P ) move on after getting tired of chasing the carrot on the stick, while the payers tend to stick around a little longer.

    I would imagine they have other properties already in the works.

    #10 2 years ago
  11. DSB

    @10 I don’t understand the gamble. EA have practically been betting the farm on this stuff.

    How does that make sense, when a Finnish startup with 4 people in it has just as big a chance of striking it large, as your huge American megacorp with investors breathing down its neck, which will be punished every single time they deliver less than expected.

    Rovio went through 50+ different failures before they struck it big with Angry Birds. They can do that, because they aren’t weighed down.

    Angry Birds itself was done by four people, and the story of Popcap is largely the same.

    In comparison, EA are quite literally a bull in a chinashop.

    I just simply don’t get it. Why is that big fat corporate elephant, who has everything to lose, trying to squeeze itself into a little Volkswagen Beetle full of indie college kids, with nothing to lose?

    #11 2 years ago
  12. magnumfinger

    Zynga’s fall can also be associated with the continuous decline of Facebook stocks.

    Make no mistake, we’ll hear a statement from Pincus soon especially now that he and his bafoons are getting investigated for ‘insider trading’ after Zynga’s financial call last week. Via: http://pinoytutorial.com/techtorial/zynga-ceo-executives-might-be-sued-for-insider-trading/

    #12 2 years ago
  13. roadkill

    Zynga sucks! They should all perish in the most gruesome way possible for stealing from other game developers. At least those who took the decision to steal should.

    EA was OK at some point in time. Now it’s barely decent. I guess.

    #13 2 years ago