Take-Two CEO Questions Zynga's Business Model

November 30, 2011 -

It seems like the Reuters Media Summit is where CEO's of game companies go to say bad things about other game companies. Yesterday it was Activision saying that EA would not make as much as LucasArts would off the new Star Wars MMOG, and today it's Take-Two taking a shot at Zynga.

Take-Two CEO Strauss Zelnick says that he doubts the Zynga business model, and has accused the social gaming company responsible for Mafia Wars and Farmville of having serious "disclosure issues."

"I would argue being the No. 1 player in (social gaming) is complicated, which is why Zynga hasn't gone public yet because their metrics are sketchy," said Zelnick at the Reuters Global Media Summit on yesterday. "Zynga is a direct marketing company, 97 percent of which don't pay them anything, 3 percent who do," he said of Zynga users. "They churn quite quickly and they get new customers. That is their model."

"I think they have disclosure issues," added Zelnick, suggesting that it wasn't being clear to potential investors about user retention and loss.

"I think you are seeing their acquisition costs go up, marketing costs go up and they have very high churn."

Zelnick also revealed that Take-Two is currently in the process of recruiting development staff globally.

Source: Reuters by way of GI.biz


Comments

Re: Take-Two CEO Questions Zynga's Business Model

Considering how untrustworthy Zynga's methods seem to be with regards to customer relations and their behavior in public, I don't expect them to behave any better to investors.
 
Forgot your password?
Username :
Password :

Poll

Should Nintendo have DMCA'd a fan's free Super Mario HD remake?:

Shout box

You're not permitted to post shouts.
ZippyDSMleeWhere is "Yes, if it was monetized." In the questions?04/01/2015 - 9:07pm
E. Zachary Knighthttp://reason.com/blog/2015/04/01/this-anti-gay-pizza-place-got-trashed-on04/01/2015 - 8:17pm
E. Zachary KnightAccording to this link, the pizzeria owner did not actually refuse anyone service. He was ask by a reporter if he would cater to a gay wedding and he answered in the negative. When that was published, the rants came rolling in.04/01/2015 - 8:17pm
Papa MidnightCorrection to my prior note, DiRT 3 Complete Edition does NOT replace DiRT 3 in user's libraries. But existing owners of DiRT 3 do get it for free.04/01/2015 - 8:00pm
Matthew Wilson@AE it could be like pokemo, but the tweet and the site makes it look like 2 different games. tbf I do not know Japanese.04/01/2015 - 7:29pm
MechaCrashInteresting how YouTube comments are universally acknowledged to be cesspits of idiocy where no coherent thought can survive, until a woman closes them. Then it's CENSORSHIP and being AFRAID OF DEBATE.04/01/2015 - 7:29pm
Andrew EisenThat's... weird. The Direct made it sound like this was an organic part of a single game.04/01/2015 - 7:08pm
Matthew Wilsonapparently the 2 sides of the story in the new fire emblem game is 2 difrent games in japan, and we are getting both combined. https://twitter.com/RPGSite/status/583415770744393729/photo/104/01/2015 - 7:00pm
MonteAE: there are pizzaria's that also make italian food which you can order in bulk to cater parties. Also, google pizza wedding; cause it is pretty cool04/01/2015 - 6:50pm
ConsterThe vast majority of (if not all) 1-star reviews are angry rants about its policy. 'Jesus said to love thy neighbor, assholes' (paraphrased) seems very common.04/01/2015 - 6:49pm
Matthew WilsonI did not check it out personaly. I only read a arctlice about it, but it does seem to be in a lets just say a very mean way.04/01/2015 - 6:41pm
Andrew EisenTrashed in a fair way or are people lying about cockroach infestations and stuff?04/01/2015 - 6:24pm
Matthew Wilsonwell they also are getting trashed on yelp too. given the number of people that use it, I suspect they will lose allot of business even if they change their mind.04/01/2015 - 6:19pm
Andrew EisenIt's a pizza joint. It caters weddings? Really? I mean, that's cool. Really cool, even. But seriously?04/01/2015 - 6:02pm
Consterhttp://www.huffingtonpost.com/2015/04/01/indiana-pizza-gay-couples_n_6985208.html04/01/2015 - 5:57pm
Andrew EisenConster - Link?04/01/2015 - 5:55pm
Conster-annnd they are 'temporarily closed' after phone threats. Way to take the moral high ground against bigotry, people. -,-04/01/2015 - 5:51pm
ConsterThe first business to use SB101 to deny service to gay weddings has arisen - let's see if EZK's theory about the free market being sufficient to deal with them holds u-04/01/2015 - 5:50pm
MonteYa i remember when she first started her videos with the comment sections open. There was A LOT of vile harrassment to shift through to get to any REAL debate. Youtube is a TERRIBLE debate forum. Can't blame her for not wanting to deal with harrasment.04/01/2015 - 5:49pm
ConsterWho's this "Anitia Skeeter" person you speak of?04/01/2015 - 5:31pm
 

Be Heard - Contact Your Politician