In the months preceding its 2011 IPO, some analysts estimated the company to have a market cap of $15 billion to $20 billion. At the last minute, that was dropped to $7 billion. And the company’s shares quickly took a dive after trading commenced. Today, the company’s market cap sits at less than $3 billion.
As the company continues to see users abandon its games at an alarming rate, it has reversed course on its plan to pursue real-money casino games in the U.S., a combination that led to investors punishing the stock Friday.
That’s what made Microsoft’s decision to replace Don Mattrick with Julie Larson-Green so frustrating for some. She was, to many, an unknown. And that quickly led some to question her qualifications, which eventually led to prophecies of doom for the Xbox in some forums.
Steve Ballmer’s massive overhaul of Microsoft’s executive office and business practices has cleared up the mystery of who will take over the Xbox division after the shocking departure of Don Mattrick.
The reorganization, announced Thursday, will put two long-time veterans of the company in charge of its console division, with different areas of focus.
As the gaming world struggles to comprehend the move by the one-time head of Microsoft’s Xbox division to the CEO’s office of the struggling social and mobile gaming giant, details are coming to light that could explain not only why Mattrick made the move, but that it was a long time coming.
There aren’t a lot of genuine surprises in the video game world these days, but Don Mattrick’s jump from Microsoft to Zynga Monday certainly qualifies as one.
Zynga has been struggling mightily since its debut as a public company, and many people felt Mark Pincus would never relinquish the CEO spot. But will Mattrick taking those reins be enough to turn the company around? And who’s taking over Xbox at Microsoft?
Now, he’s hoping to pull of a similar miracle at Zynga—but it’s a move that has left investors, Microsoft and the gaming world baffled.
All Things D reports Mattrick is close to taking the CEO position at struggling social game maker Zynga. An announcement may come as early as the end of the day.
But the man in charge of Xbox maintains Microsoft is offering an incredible deal.
With gamers still smarting over the company’s $499 pricing announcement for the Xbox One, the head of the Xbox division has ruffled more feathers in addressing concerns about the system’s demand for a internet connection.