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With a new CEO at the helm, game maker Zynga is getting back to basics, and will scrap a plan to offer real-money gambling games in the U.S.
In its second quarter earnings release, Zynga said that its biggest growth opportunity is in the free-to-play social gaming market.
“While the company continues to evaluate its real-money gaming products in the United Kingdom test, Zynga is making the focused choice not to pursue a license for real money gambling in the United States,” the company said in a statement(Opens in a new window).
That doesn’t mean all casino-based games are off the table, so to speak; Zynga added that it will “continue to evaluate all of its priorities against the growing market opportunity in free, social gaming, including social casino offerings.”
Former CEO Mark Pincus announced in February(Opens in a new window) that Zynga would bring online gambling to the American masses, via a real-money gaming system. That was several months after Zynga applied for(Opens in a new window) a gaming license with the Nevada Gaming Control Board.
But new boss Don Mattrick appears to be taking a step in a different direction. The company will, however, continue placing its bets on U.K. gambling, which launched in April(Opens in a new window) with ZyngaPlusPoker and ZyngaPlusCasino, boasting more than 160 titles, including a FarmVille slots game.
“The next few years will be a time of phenomenal growth in our space and Zynga has incredible assets to take advantage of the market opportunity,” Mattrick said in a statement. “To do that, we need to get back to basics and take a longer term view on our products and business, develop more efficient processes and tighten up execution all across the company.”
Mattrick has a tough road ahead, following an internal shake-up and recent staff layoffs.
“We have a lot of hard work in front of us and as we reset, we expect to see more volatility in our business than we would like over the next two to four quarters,” Mattrick said. “I’m privileged to lead Zynga and I look forward to spending more time with our players, employees, and shareholders.”
Earlier this month, Mattrick announced plans to leave Microsoft for a position at the head of Zynga. Since joining Redmond in 2007, he took control of Microsoft’s interactive entertainment business in 2010, and was responsible for Xbox 360, Xbox Live, Kinect, Zune Music and Video, and Mediaroom, as well as the PC and mobile interactive entertainment divisions.
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Source link : https://www.pcmag.com/news/zynga-ditches-us-real-money-gambling-plans