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.
 
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quiknkoldEZacharyKnight : Lemme ask you a question. We have people who cling to walls, people who fire lasers from their eyes, people who can shapeshift....and yet fabric needs to be upheld to RL physics?09/17/2014 - 6:54pm
james_fudgebody paint?09/17/2014 - 5:33pm
E. Zachary Knightquiknkold, I stand corrected on the buttcrack thing. Still, I know of no fabric that actually does that.09/17/2014 - 5:05pm
Andrew EisenSo... it's unethical to discuss the ethics surrounding public interest vs. personal privacy?09/17/2014 - 4:45pm
prh99The source for the game was just released not long ago, it's at https://github.com/keendreams/keen09/17/2014 - 4:43pm
prh99An Indiegogo champagin bought the rights to the early 90's game Keen Dreams to make it open source and release it on GOG etc. https://www.indiegogo.com/projects/let-s-get-keen-dreams-re-released-legally09/17/2014 - 4:42pm
james_fudgeAlso http://www.breitbart.com/Breitbart-London/2014/09/17/Exposed-the-secret-mailing-list-of-the-gaming-journalism-elite09/17/2014 - 4:29pm
Andrew EisenI read the Kotaku story. Nowhere does it say anything close to "Gamers are white bigoted sexist losers." It's commenting specifically on the crap being slung at people discussing gender issues in games. So, what's the problem?09/17/2014 - 4:06pm
Andrew EisenYeah, I can imagine Spiderwoman posed like in your second link.09/17/2014 - 4:00pm
Andrew EisenThat's not the same pose. Spiderman (who is wearing an actual outfit rather than body paint) is crouched low to the ground. Kinda like a spider! Spiderwoman has her butt up in the air like she's waiting to be mounted.09/17/2014 - 3:59pm
quiknkoldAndrew Eisen : Kotaku did a whiole article on it, as did others http://kotaku.com/we-might-be-witnessing-the-death-of-an-identity-162820307909/17/2014 - 3:59pm
CMinerQuiknkold: Do you think that there are no cases where a piece of art (painting, movie, videogame, comic cover, etc) is unambiguously sexist?09/17/2014 - 3:58pm
quiknkoldand can you imagine if Spiderwoman was posed like this? http://goodcomics.comicbookresources.com/wp-content/uploads/2013/02/spider-man1.jpg09/17/2014 - 3:58pm
Andrew EisenWhat games outlet is writing articles saying "Gamers are white bigoted sexist losers"? What examples have you seen of journalists being paid off for favorable reviews? Who's shaming what now? What's the problem with critiquing the Spiderwoman cover?09/17/2014 - 3:57pm
james_fudgeWell there's def "politics" involved in this issue. The movement was hamstrung by bad behavior and illegal activites here. We would have covered it more if not for those unforutnate happenings.09/17/2014 - 3:56pm
quiknkoldhttp://i.imgur.com/v3p8Bwf.jpg Here you go EZacharyKnight. Spidermans Buttcrack.09/17/2014 - 3:56pm
quiknkoldwhile another person doesnt see it09/17/2014 - 3:56pm
quiknkoldJames_fudge : I feel like the people challenging Games are the same people who Challenge Art because Michaelangelo's David shows Wang. The problem is, alot of things with Games are left to the eye of the beholder. One Person see's Sexist Antiwomen views.09/17/2014 - 3:55pm
E. Zachary Knightquiknkold, I don't recall Spider-man's costume conforming to the contour of his buttcrack.09/17/2014 - 3:54pm
quiknkoldIts the same Agenda Fueled Journalism youd find on Fox News or MSNBC. I appreciate Gamepolitics for just stating the facts.09/17/2014 - 3:54pm
 

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