Zynga Will Close Its Japan Operation In January 2012

Zynga has confirmed that it will close its Japan operation as a part of consolidation process, which requires cutting less profitable areas of business. The suggestion was raised in October when company cut down 5 % jobs.

Kenji Matsubara, CEO of Japan operation, also confirms the closure on Facebook, a social network that defined Zynga’s rise and fall. Though no reason is given for the closure, but probably poor sales in Japan is the issue.

Serkan Toto spotted this news and shared the screenshot of the status update from CEO:

The Japanese text can be translated as, “Zynga Japan will be shut down at the end of January, that Matsubara thanks users for playing his company’s games, and that service for popular card battle game Ayakashi will be continued.”

Zynga has strong bonding with Japan. Before going public, it was hugely supported by Softbank, which pumped $150 million into the operation in 2010. Zynga also showed interest in the market by buying Unoh in the same year, through spending several billion yen.

Zynga is not only declining in Japan, but everywhere else. Also, it is getting tough competition from GREE, DNA and others. So, company has decided in October to go for closure. In the past month, it has initiated closing process by shutting down three games in market.

UK market is still in question as its closure in October was also suggested, due to poor sales. The company has shut down its games studio in the country. However, UK will also implement company’s newest strategy to get back to profits. Now, the time will reveal if Zynga’s decision for continuing in UK market is right or wrong.

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