Zynga Inc (NASDAQ:ZNGA) Revamps Its Leadership Yet Again

Zynga Inc (NASDAQ:ZNGA) Revamps Its Leadership Yet Again

Zynga Inc (NASDAQ:ZNGA) has made changes in its leadership. Frank Gibeau, who joined as a director in August 2015, after helming Electronic Arts Inc. (NASDAQ:EA) for over two decades will become CEO. Zynga’s founder and present CEO Mark Pincus will step down from his post and assume the role of executive chairman.

In 2014, Mr. Pincus was CEO and his post was taken over by Don Mattrick, former Microsoft Corporation (NASDAQ:MSFT) and EA employee. Two years later, Mr. Mattrick left his post and Mr. Pincus became CEO again.

Doug Creutz, analyst at Cowen and Company commented that Zynga urgently requires a significant transformation. Mr. Gibeau, has experience mainly in consoles/PCs. It’s not certain how much his experience will help Zynga. Other console specialists have found it difficult to adapt to gaming companies.

In an email dispatched to Zynga’s employees Pincus informed them of the decision to make Gibeau CEO. He mentioned that the new CEO is famous for achieving organizational excellence. Pincus admitted to delays to several of the organization’s games. However, he said that the company is set to release as many as ten new titles in 2016.Pincus added that Gibeau will helm strategy and execution while he would concentrate on superior social experience for players.

In a press release, Mr. Pincus described Mr. Gibeau as a veteran leader with the experience to ably handle the types of challenges Zynga encounters regularly.

Since, its introduction, Zynga has found it difficult to maintain the considerable consumer interest in its online games. Zynga relied heavily on Facebook for its games. Players generally played the games on desktop PCs and not on mobile gadgets. This adversely affected the company when more people switched to mobile devices.

The company’s signature game, Farmville hit was mainly because of utilizing Facebook’s notification feature to continuously urge people to play the game. However, after number of other games followed the practice, Facebook Inc (NASDAQ:FB) discouraged the same. Presently, the main growth market for games is standalone apps for smartphones.

Zynga has been lagging in launching big and modern games for the market. Many people are of the opinion that Zynga’s head should be someone with genuine experience and exposure regarding online games.