Microsoft Corporation (MSFT)’s Loss Will Be Zynga Inc (ZNGA)’s Gain

Microsoft Corporation (NASDAQ:MSFT) has been at the top of the home gaming and entertainment market the last several years with its Xbox franchise, one which just launched its latest hardware edition, the Xbox One. While the latest console is getting mixed reviews – with the main complaint is that it’s too expensive for what the device offers – the Xbox franchise has evolved in dramatic ways over the last several years, and much of the credit for the development of Xbox and its console and services falls on the shoulders of the division chief, Don Mattrick.

Zynga Inc (NASDAQ:ZNGA)Zynga Inc (NASDAQ:ZNGA) has been really struggling the last couple of years, ever since its massive stable of social games on Facebook Inc (NASDAQ:FB) got pushed into the background with Facebook’s overhaul of its pages to the Timeline format. Many popular Zynga games wound up getting buried where they were not difficult for users to find, so the number of players and number of games played dropped precipitously, and Zynga was late to recover and adjust. So where and how does Microsoft Corporation (NASDAQ:MSFT) enter into the picture and try to rescue Zynga?

It starts with Mattrick. And as the latest report circulated on the markets Monday that Mattrick was leaving Microsoft Corporation (NASDAQ:MSFT) to become the new CEO at Zynga Inc (NASDAQ:ZNGA), Zynga stock immediately rallied, at one point more than 12 percent over its opening price, clearing $3.10 a share. While Mattrick is considered the main cog in the Xbox wheel at Microsoft – which means some think his departure will be as big a blow to Microsoft as it could be a win for Zynga – it could be an opportunity for him to establish Zynga on mobile, which has been a bugaboo for Zynga over the last year or so. Whether Mattrick can develop mobile when he has been known as a console gaming guy will remain to be┬áseen, but few question his chops in developing gaming experiences for users.

If the market is any indication, Zynga Inc (NASDAQ:ZNGA) seems to have hit a home run with this news, as it seems to be believed that Mattrick’s arrival may be the first big step to rescuing Zynga from gaming oblivion. What will this ultimately mean for Microsoft Corporation (NASDAQ:MSFT), which had Mattrick as the face of Xbox for the last several years? After all, he was the one who was on stage to introduce Xbox One to the world, not CEO Steve Ballmer.

What are your thoughts about this move? Will it hurt Microsoft Corporation (NASDAQ:MSFT) more than it will help Zynga Inc (NASDAQ:ZNGA)? Do you think this will help Zynga at all, and how much benefit will this be to investors like fund manager Ken Griffin (see his portfolio)? Give us your feedback in the comments section below.

DISCLOSURE: None

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!