Don Mattrick Can’t Save Zynga Inc (ZNGA) From Itself

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Game consoles are usually sold at a loss in the early years, with console manufacturers making up for it with hefty licensing fees from developers. This model has always favored larger companies. In contrast, mobile is different in that platform operators simply take a 30% cut of sales, giving the smaller developers a better chance at releasing the next Angry Birds or Temple Run. That’s far more competitive, and levels the playing field in many ways as it rewards greater creativity and innovation — two qualities that Zynga Inc (NASDAQ:ZNGA) has never demonstrated.

Mattrick will be moving from managing a gaming console platform to directly competing within a mobile platform, all while Pincus still calls the shots with products. That doesn’t sound like a recipe for success.

The article Don Mattrick Can’t Save Zynga From Itself originally appeared on Fool.com.

Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool recommends Facebook Inc (NASDAQ:FB) and owns shares of Facebook Inc (NASDAQ:FB) and Microsoft Corporation (NASDAQ:MSFT).

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