SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

CHANNEL BY TOPICS


QUICK LINKS




Zynga Picks Up NaturalMotion in Nine Figure Deal

TMCnet Feature

January 31, 2014

Zynga Picks Up NaturalMotion in Nine Figure Deal

Share
Tweet
By Steve Anderson
Contributing TMCnet Writer

Zynga isn't exactly tops on most people's front-of-mind marching order these days, particularly in the gaming department. While the company has had its share of struggles in the recent past, it's likewise clear that the company isn't going anywhere any time soon. In fact, it just made a major purchase—like nine figures' worth of major—of NaturalMotion, a company that's got some big franchises in its stable already.


Reports indicate that Zynga (News - Alert) shelled out $391 million in cash, along with 39.8 million shares of stock for a combined total of around $527 million total to get hands on NaturalMotion, which has previously brought out titles like Clumsy Ninja and CSR (News - Alert) Racing. Beyond that, though, NaturalMotion got its start in 3D animation, backed up by designer Torsten Rell's Ph.D work in Complex Systems in the zoology department at Oxford. Such training allowed Rell to develop software that could provide highly realistic animation in 3D, systems that were used in both games like the Grand Theft Auto series and movies like the Lord of the Rings trilogy. Said work also went into NaturalMotion's own games, and the level of care involved in producing the games has drawn attention from major partners like Apple (News - Alert).

Recent changes in the gaming market have made it much more difficult to draw a crowd, particularly on mobile platforms. Where in the past, a game developer could do well by having several models on hand that could be tossed like handfuls of seed into a field and be assured a decent harvest, now, game developers have to be savvy marketers as well, getting the word out about a product in the face of huge numbers of competitors. That means the steak needs to match the sizzle, so to speak, and the quality of games needs to be high, as is commonly the case with NaturalMotion's portfolio.

Zynga, with that purchase, gets hands on said portfolio, as well as a company with 260 staffers already deeply focused on quality as part of the corporate culture and the so-called middleware business for things like the 3D animation, which is likely to prove valuable as movies turn to 3D animation for special effects work. Of course, this news didn't come without issues of its own, as reports suggest that, right around the same time Zynga sealed this particular deal, it also launched a massive layoff effort that took 314 employees down with it. The move is reportedly set to pull in between $33 and $35 million in savings this year alone, or a fair chunk of the purchase price for NaturalMotion.

This is a very big move for Zynga indeed, the kind of thing that will help the post-Pincus era, as helmed by former Xbox executive Don Mattrick, really distinguish itself. Getting Zynga out of the Farmville-style games on Facebook it was formerly known for and expanding its repertoire is the kind of thing that should not only give Zynga a new image, but also plenty of new products to offer. It's more diversified this way, and while there's a certain case for at least some level of specialization, there's also a value in having eggs in more than one basket, so to speak.

While Zynga is still having a tough time in the new environment, it's clear that Zynga's efforts are likely to give it a real hand up in the ever-changing gaming market. This was a bold move, but also a move that's very likely to pay off in the long term.




Edited by Cassandra Tucker


View all articles


Comments powered by Disqus








Technology Marketing Corporation

2 Trap Falls Road Suite 106, Shelton, CT 06484 USA
Ph: +1-203-852-6800, 800-243-6002

General comments: [email protected].
Comments about this site: [email protected].

STAY CURRENT YOUR WAY

© 2024 Technology Marketing Corporation. All rights reserved | Privacy Policy