Creators of drawing app, OMGPOP, out of the picture at ailing game designers, Zynga

Developers of Draw Something find themselves out of work

A little more than a year ago, they were kings of the castle in the world of online gaming applications. Their small studio hit headlines when it was sold for £113million after its most successful game, Draw Something, was downloaded more than 35 million times in only seven weeks.

Today, however, developers at OMGPOP find themselves out of work after a shocking financial slide at Zynga, which bought the US company in March last year. Zynga, the developer of FarmVille and Mafia Wars, was forced to announce large-scale cuts.

Ali Nicolas, a former vice-president of the OMGPOP studio, posted on Twitter she had only learned via Facebook that she was out of work and her office, which became Zynga’s New York HQ after the buyout, was to be closed down. She wrote: “Thanks Zynga for again reminding me how not to operate a business.”

Both companies’ falls from grace are cautionary tales. Martin Bryant, managing editor of technology website The Next Web, said: “Zynga overpaid and that is self-evident in the short lifespan of Draw Something. It is difficult for these companies as social gaming is all about fads and the next hit, and you are only as good as your last hit. It shows how volatile the industry is.”

Mr Bryant said the only game app to buck the trend was Angry Birds, created by the Finnish developer Rovio Entertainment. He added: “That has gone from strength to strength. They have turned it into a huge industry with licensing deals.”

He said he believed Zynga’s strategy in buying OMGPOP was to capitalise on the large audiences for its Draw Something game but could not come up with another hit. Mr Bryant added, it would be “held up as an example of over-confidence in the potential of the social gaming market”. In a statement announcing the cuts, Zynga said its Facebook-based game FarmVille “continues to perform well” but admitted other games were underperforming.

The closure of OMGPOP was among the cuts, which saw 520 Zynga staff – 18 per cent of the workforce – lose their jobs. Zynga said it hoped the job losses and office closures would save it £52m. Even then, the San Francisco-based firm told investors it expected to make a net loss of up to £25m in the second quarter of 2013. About 250 million people play Zynga’s games a month.

Property
pets
Arts and Entertainment
tvGame of Thrones season 5 ep 4, review - WARNING: contains major spoiliers!
Arts and Entertainment
tvThe C-Word, TV review
Arts and Entertainment
The Ridiculous Six has been produced by Adam Sandler, who also stars in it
filmNew controversy after nine Native American actors walked off set
Life and Style
ebookNow available in paperback
ebooks
ebookPart of The Independent’s new eBook series The Great Composers
Sport
Danny Jones was in the Wales squad for the 2013 World Cup
rugby leagueKeighley Cougars half-back was taken off after just four minutes
Life and Style
The original ZX Spectrum was simple to plug into your TV and get playing on
techThirty years on, the ZX Spectrum is back, after a fashion
News
Tiger Woods and Lindsey Vonn are breaking up after nearly three years together
peopleFormer couple announce separation in posts on their websites
Sport
football
Life and Style
Google celebrates Bartolomeo Cristofori's 360th birthday
techGoogle Doodle to the rescue
Arts and Entertainment
Haunted looks: Matthew Macfadyen and Timothy Spall star in ‘The Enfield Haunting’
tvThe Enfield Haunting, TV review
News
news
News
The Mattehorn stands reflected in Leisee lake near Sunnegga station on June 30, 2013 near Zermatt, Switzerland
news
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    Recruitment Genius: Software Developer - C# / ASP.NET / SQL

    £17000 - £30000 per annum: Recruitment Genius: Developer required to join a bu...

    Recruitment Genius: Software Consultant / 1st Line Support

    £15000 - £25000 per annum: Recruitment Genius: As your knowledge grows you wil...

    Ashdown Group: Systems Engineer - Linux - Central London

    £40000 - £48000 per annum + Benefits: Ashdown Group: Systems Engineer - Linux ...

    Recruitment Genius: Technical Support and Sales Engineer - UC / M2M / IoT

    £20000 - £30000 per annum: Recruitment Genius: This leading provider of Cloud ...

    Day In a Page

    Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

    Fishing is on Nigel Farage's mind

    Ukip leader casts a line to the disaffected
    Who is bombing whom in the Middle East? It's amazing they don't all hit each other

    Who is bombing whom in the Middle East?

    Robert Fisk untangles the countries and factions
    China's influence on fashion: At the top of the game both creatively and commercially

    China's influence on fashion

    At the top of the game both creatively and commercially
    Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

    The man known as GOD has a reputation for getting the job done

    Lord O'Donnell's three principles of rule
    Rainbow shades: It's all bright on the night

    Rainbow shades

    It's all bright on the night
    'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

    Bread from heaven

    Dutch survivors thank RAF for World War II drop that saved millions
    Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

    How 'the Axe' helped Labour

    UK will be 'run for the wealthy and powerful' if Tories retain power
    Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

    The price to be paid for challenging the rule of extremists

    A revolution now 'consuming its own children'
    Welcome to the world of Megagames

    Welcome to the world of Megagames

    300 players take part in Watch the Skies! board game in London
    'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

    Charlotte Gainsbourg on 'Nymphomaniac'

    Starring in one of the most explicit films ever
    Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

    Robert Fisk in Abu Dhabi

    The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
    Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

    Vince Cable exclusive interview

    Charging fees for employment tribunals was 'a very bad move'
    Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

    Iwan Rheon is returning to his Welsh roots

    Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
    Russell Brand's interview with Ed Miliband has got everyone talking about The Trews

    Everyone is talking about The Trews

    Russell Brand's 'true news' videos attract millions of viewers. But today's 'Milibrand' interview introduced his resolutely amateurish style to a whole new crowd
    Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

    It's time for my close-up

    Meet the man who films great whites for a living