What was changed
Zynga's Facebook-era web games faded after 2012, and the company lost money for years; 2016 net loss was $108.2M. Its revenue model was tied to one-off launches on a declining platform.
Under CEO Frank Gibeau, Zynga shut weak titles, concentrated on live-service mobile games such as CSR Racing 2, Zynga Poker and Words With Friends, and bought mobile studios including Peak Games' card unit for $99.7M.
Numbers turned in 2017: net income was $26.6M, the first full-year profit since 2010, mobile revenue grew 29%, Q4 mobile revenue reached $203.6M (up 32%), and daily active users hit 20M, the highest in four years.
What it achieved
2017 net income $26.6M versus a $108.2M loss in 2016; mobile revenue rose 29% and Q4 mobile revenue hit $203.6M, with 20M daily users.
Why it worked
Live mobile games generated recurring revenue instead of one-off launch spikes.
Acquisitions brought proven mobile teams and titles into the portfolio.
Killing underperformers freed cost and attention for the winners.
What can be applied
When a platform-era business matures, pivot the whole portfolio to the new channel and kill the stragglers; recurring live-service games beat one-off launches.
Aftermath
Zynga compounded record mobile revenue and bookings through 2018-2019 and later agreed to be acquired by Take-Two, capping the turnaround.
FOLLOW THE EVIDENCE