[shwash]

Anecdotally I know, but I thought a large percentage of people knew Zynga was way overvalued. That said, how does a company of 3000 people not recognize this and drive forward new revenue? They had the cash, they could and did hire talent. What stopped new revenue sources from being created? I'd love to read a breakdown of what's happened there.

[talmand]

It's likely as simple as a failed company of people from the beginning that got lucky with one or two games because of external forces and thought they could make run of it forever. It's not a new story in the games industry, it happens all the time. The only reason this seems different is because of the extreme overvaluation at the beginning of the hype train that's been failing for the last few years.

Take a look at ION Storm as a somewhat related story.