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 :

Shout box

You're not permitted to post shouts.
Andrew EisenWell of course. Girls don't buy figurines and guys don't buy figurines of girls. And no, the girls that buy figurines and the guys that buy figurines of girls don't count. The money belongs on the table, thank you very much!10/21/2014 - 12:43pm
IanCI have 3 of the Disney Infinity figures even though i don't have the game (Rapunzel from Tangled, and Anna & Elsa from Frozen, purely because its the only way to get figures from those two films)10/21/2014 - 12:23pm
Andrew EisenGlad you said "Pokemon." That's the first time I've seen anyone use that abbreviation.10/21/2014 - 12:14pm
MaskedPixelanteGot my demo key for ORAS, hope I get some awesome Pokemon to bring over.10/21/2014 - 12:08pm
E. Zachary KnightNot owning a WiiU helps too.10/21/2014 - 11:39am
E. Zachary KnightI have avoided Skylanders and Disney Infinity so far, so I don't see how Amiibos will get me in their grasp.10/21/2014 - 11:39am
Andrew EisenYes, GamerGate has a lot of fair-weather friends.10/21/2014 - 11:25am
Neo_DrKefkaI'm disheartened we have a group of people in Gamergate such as The Ralph Retort that is using Gamergate to prop themselves up but they are acting just like those they are fighting against. Only gaming site coming out of gamergate that worthy is TechRaptr10/21/2014 - 11:17am
Andrew EisenNot I. I'm not interested in desktop tchotchkes. Don't know what they do in Captain Toad (a game I'll actually be picking up) but I'm not impressed by what they do in Smash Bros.10/21/2014 - 11:10am
quiknkoldso in a change of subject to something much lighter, who here is getting the Amiibos? I have 4 preordered.10/21/2014 - 7:02am
TechnogeekFor a change of pace, here's a story about death threats aimed at games industry employees via Twitter that has nothing whatsoever to do with Gamergate: http://kotaku.com/indie-dev-threatens-gabe-newell-has-game-removed-from-164867886910/21/2014 - 4:38am
MechaCrashThey aren't being held accountable because *this is what GamerGate is really about.* Hatred and harassment under a thin veneer of concern for ethics; it's a rotten movement right down to the core. Related: http://tinyurl.com/o5mamgn10/21/2014 - 1:53am
james_fudgeodd why would they delete pro vita comments?10/21/2014 - 12:50am
Neo_DrKefkaI am a little disturbed that members of #GamerGate are supporting and not holding its same members accountable when they say remarks that are unacceptable!10/20/2014 - 11:39pm
Neo_DrKefkaSome #GamerGate people are defending @kingofpol many are however lashing out at him but if we held Sam Biddle accountable and Gawker so must we hold @kingofpol and #GamerGate10/20/2014 - 11:30pm
Neo_DrKefkaA big name in the Gamergate movement Kingofpol uses a offensive term about autistic people and in turn the entire GamerGate community lashes out at him. We do not need false leaders who think they can say anything https://twitter.com/Kingofpol10/20/2014 - 11:07pm
Papa MidnightMP, honestly, I'm struggling to make heads or tales of the events being outlined in that reddit thread. I've never heard of Siliconera before, either.10/20/2014 - 10:48pm
MaskedPixelantehttp://www.reddit.com/r/vita/comments/2jbn6u/former_siliconera_moderator_leaks_screenshots_of/ Siliconera mods accused of deleting user comments that were pro Vita.10/20/2014 - 9:23pm
quiknkoldhttp://www.diamondbackonline.com/opinion/article_3fbc52ec-57eb-11e4-ba91-0017a43b2370.html10/20/2014 - 9:16pm
Neo_DrKefkaId love to see people come 2gether whether your 4 or against gamergate to gather 2gether and support an anti bullying charity and I would love to see a pro and anti gamegate debate on a neutral platform that promotes discussion and solutions10/20/2014 - 8:33pm
 

Be Heard - Contact Your Politician