Report – Zynga “ruthless”, “not worried about margins”

By Brenna Hillier, Tuesday, 14 June 2011 06:06 GMT

An anonymous executive of a business acquired by social gaming giant Zynga has commented on the company’s atmosphere, giving insight into its Blitzkrieg method of conquering Facebook.

“They’re really ruthless with cutting things that don’t work. If a game doesn’t work, they kill it,” a source told Business Insider.

“They’ll throw those resources somewhere else. I definitely get that.

“They have ‘move at Zynga speed’ written all over the walls. … They don’t always know where they’re going but they’re going fast. I think it’s one of the reasons that they’re ahead of other people. They got that early lead and starting acquiring as many users as possible and cross-promoting.

“… They’re not worried about the margins. If they can buy a user on a Facebook ad for a dollar and the user nets me a dollar and three cents, even, then I’ll keep buying users until that’s positive. Zynga is making way more money than anybody, but they’re also spending more money than anybody.”

Not that Zynga’s tactics always impress insiders.

“They move really fast and they’re good at executing, but they just kind of throw bodies at problems. Not thought,” the source complained.

“… For people who like to have ownership, sometimes it can be a serious headache. [Zynga’s approach is] ‘This game isn’t working? Hire 20 more people.’ [Not] maybe we should fix the game dynamics?”

Zynga has made eleven acquisitions in the last eleven months, including MarketZero, Floodgate Entertainment, Area/Code Bonfire Studios and Newtoy. It is best known for phenomenally successful Facebook games like Mafia Wars, farmville and Frontierville.

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