Zynga has seen its stock price drop below $3 after the company reported disappointing earnings in its recent quarterly report. It resulted in the firm stripping COO John Schappert of his responsibility for games. Zynga transferred oversight of games jointly to Chief Mobile Officer David Ko and Executive Vice President Steve Chiang, something Wedbush Securities’ Michael Pachter is practically livid about.
“Pulling a game guy out of the primary responsibility for managing the game effort, and putting a non-game guy, which is Pincus, in charge, I think that’s idiotic,” said Pachter to Bloomberg. “The newer games are doing really quite well and it’s really that the growth of the new stuff isn’t offsetting the decline in the old stuff. So I’m not sure how that’s Schappert’s responsibility or fault, and I think this is probably ultimately going to be a strategic error that bites them in the butt.”
Source: Business Insider
