includes this amazing statement: "The company blamed the poor performance of its established, money-making games - Facebook-based titles like 'Cityville' - on changes to Facebook's algorithm, which Zynga said spurred users to discover new games rather than repeatedly play existing Zynga offerings." So Zynga is saying it was hosed by the algorithms of the site that made its games famous--the site that derives a lot of its own revenue from a cut of Zynga's revenue. It looks like Facebook has a rather odd idea of how to be a "partner" with another business that uses its platform. No wonder the stock of both companies went down when Zynga's results were announced. This should increase interest in Facebook's results and Facebook's spin on its results, including any response Facebook has to what Zynga's excuse for its performance is.
http://www.nytimes.com/reuters/2012/07/25/business/25reuters...
kindly shared to HN by iProject,
http://news.ycombinator.com/item?id=4293713
includes this amazing statement: "The company blamed the poor performance of its established, money-making games - Facebook-based titles like 'Cityville' - on changes to Facebook's algorithm, which Zynga said spurred users to discover new games rather than repeatedly play existing Zynga offerings." So Zynga is saying it was hosed by the algorithms of the site that made its games famous--the site that derives a lot of its own revenue from a cut of Zynga's revenue. It looks like Facebook has a rather odd idea of how to be a "partner" with another business that uses its platform. No wonder the stock of both companies went down when Zynga's results were announced. This should increase interest in Facebook's results and Facebook's spin on its results, including any response Facebook has to what Zynga's excuse for its performance is.