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 seen, 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

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!