Wednesday, July 25, 2012

Zynga misses big on earnings

Zynga, maker of games such as Farmville, is down BIG after reporting a $22 million loss. How could this widely successful social gaming company possibly lose money? These games are huge cash cows, they don't require massive servers, complex development etc. In fact the company had nearly $1.2 billion in revenues last year. So what happened? One trip to their Wikipedia page is very telling:

At the company's headquarters in SoMa:
employees enjoy perks such as free gourmet meals, access to an in-house nutritionist, personal training, and insurance coverage for pets. Zynga headquarters features a coffee shop, gaming arcade, gym, basketball court, and wellness center
...the building is only 7 stories tall - are there actually any offices in there??

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