In an unfortunate turn of events, social games developer Zynga has filed for chapter 11, a state of reorganization that usually prompts heavy cutbacks and asset solvency.
"The free-to-play market is saturated and unfortunately this means our prospects have been diluted" says Chief Engineer Kostadis Rousso, but he adds "We see huge potential in the downloadable content segment, and we will be bringing our magic touch to properties from EA, Activision, and Nintendo." There is no news on how this is affecting Zynga's share price, as the flailing company has been dropped from the NASDAQ, resulting in Don Mattrick stepping down from his CEO position.
While we could not reach him for a comment, one employee has shared a photo when Mattrick was last seen walking away from the Zynga campus earlier this morning. More updates will follow as the story develops.
