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The unveiling of the iPad Mini
is just what Facebook game creator Zynga needed to divert attention
away from what they have done. Reports claim that Zynga has streamlined
its studios in Boston, Austin, and Chicago, laying off many (if not
all) employees working in it.
A Zynga employee in Austin has confirmed to Joystiq
that at least two of his studio’s teams were let go (particulary The
Ville and Zynga Bingo teams), while The Verge reports that over 100
employees were laid off in Austin.
Meanwhile, TechCrunch is reporting that Zynga’s studio in Boston, which was apparently working on an unannounced title, was shut down completely. Zynga’s headquarters in San Francisco remains unfazed.
We can safely say that Zynga is trying to plug the hemorrhage it has
been getting from its ongoing lawsuit against game publishing colossus
Electronic Arts, claiming that Zynga’s The Ville game looks way to
similar to EA’s The Sim Social. Zynga is also dealing with declining
stock value since its IPO, while its $200 million acquisition of Draw
Something developer OMGPOP remains an inside joke in Wall Street and Silicon Valley.
Not a single word has been uttered from any Zynga official regarding
the issue, as the company is set to release its quarterly earnings
Wednesday and it is expected to be on the red again.
Source: Justin Maxwell, via Engadget
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