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Zynga CEO on its blockchain gaming division and navigating the advertising crisis

Beating the street and its own guidance, Zynga reported record third-quarter revenue of $705 million, up 40% from the same period last year and reaching its largest mobile audience ever of 183 million monthly active users, up 120% year over year. Despite.

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Beating the street and its own guidance, Zynga reported record third-quarter revenue of $705 million, up 40% from the same period last year and reaching its largest mobile audience ever of 183 million monthly active users, up 120% year over year.

Despite warning in the second quarter of a material impact from Apple’s privacy policy changes that caused a dramatic 30% sell off in its stock from August 5 through November 4, Zynga’s share price jumped today on news that it had better than expected user-acquisition performance and is back on track to finish the year strong.

Zynga CEO Frank Gibeau. Image Credits: Zynga

TechCrunch spoke with Zynga CEO Frank Gibeau on how the mobile game giant has been able to navigate the advertising crisis while making moves to expand cross-platform and onto the blockchain.

Weathering the storm

On April 26, when Apple changed its IDFA (Identifier For Advertisers) and required developers to use its ATT (App Tracking Transparency) tool to allow users to opt out of being tracked across iOS apps, it shook the mobile ad ecosystem. New users gained during the lockdown dropped off in droves as pandemic restrictions lifted but as targeting became more difficult, acquisition costs soared. Companies began to report a 15%-20% hit to revenue according to marketing firm Consumer Acquisition. Among those most affected were ad platforms like Snapchat, advertisers like Peloton and Zynga, which is both an ad platform and advertiser.

“The midpoint of this year was tough,” Gibeau told TechCrunch. “We were one of the first ones out of the chute with the combination of IDFA and the great reopening demand issues. To navigate, we pulled back on our ad spend and began to experiment with new tools and techniques, and by September, we started to see yields come back to normal.”

Gibeau said they waited to launch FarmVille 3 until growth rates returned, and he was excited to see the game shoot to the No. 1 and No. 2 spots on the top free iPad and iPhone app store, respectively, after its November 4 launch.

“I’m happy to report that we feel the worst is behind us and we are scaling up our spending for new games as we head into the fourth quarter. The key to navigating this period has been how we use our first-party data with the Chartboost platform,” he said, referencing the ad network Zynga acquired earlier this year.

“We have a lot of data about what happens when players come into our games, the events they play and what advertisers are doing in our existing supply. First-party data allows us to build models that make predictions about the types of returns or auctions that would be beneficial to us,” he said.

Zynga is also partnering with Unity, Google and Iron Source, among others, to find ways to better target players.

“There are a lot of smart people attacking this problem. It’s more a function of time than there’s not going to be a solution,” he said. “Over the long term, Apple is building a capable platform to support a healthy advertising market while protecting player privacy, and we’re happy to work with them on this,” he said.

Rocking hypercasual

Although 80% of Zynga’s business is subscriptions and microtransactions from in-app purchases, a fifth of the company’s revenue is from advertising, a fast-growing segment being driven by the popularity of hypercasual games, which are games with simple interfaces that can typically be played in fewer than 30 seconds.

In the third quarter, Zynga nearly doubled its advertising revenue over the prior-year period, said Gibeau, attributing its success to Rollic, an Istanbul-based game studio that Zynga acquired a year ago that helped it become a top-three publisher in the category.

“If you look at the number of installs on the app stores, hypercausal is the largest category. These are very inexpensive games that reach massive audiences and utilize advertising as its primary means of monetization. It’s a very lucrative place for us to be and a great feeder of users into our network that ties into our ambitions to create an at-scale publishing and advertising platform that will be a growth driver for us into 2022 and beyond,” said Gibeau.

All roads lead to the metaverse

Zynga’s next big game release is Star Wars: Hunters, which is soft launching on Android in select markets next week and testing on iOS and Switch in the New Year, Gibeau said. It’s the company’s first cross-platform game on console and FarmVille 3 was its first cross-platform launch on macOS.

Gibeau explained his interest in making Zynga’s mobile games playable on other platforms.

“FarmVille fans and Star Wars fans are everywhere, so it really behooves us to be platform agnostic and make our experience available as many places as possible,” he said. “At the end of the day, we’re a social game company that believes it’s more fun to play games together than by yourself. So as part of our culture, we like to innovate and try new things.”

Since 2020, Zynga has had games on Snapchat, Google Nest and Amazon Alexa, and just released its first game on TikTok called Disco Loco 3D, which is a free-to-play music and dance challenge.

“In gaming you can get caught out if you miss the next platform. If you get that wrong, it can be pretty painful. So we thought it would be cool to develop experiences on these social platforms to see if there’s any interest. With Snapchat, we partnered with them to help them figure out how to make gaming more a part of their ecosystem, and we’re seeing some good results — but it’s early days,” said Gibeau emphasizing that these games are intended to be proof of concept more than revenue generators.

With Netflix Gaming having launched on November 2 with former Zynga chief creative officer Mike Verdu at the helm, Gibeau said, “For Netflix, there’s a lot to learn in terms of how they want to approach the subscriptions end of the business and how their users interact with the games, so I don’t know if they’re ready yet for third-party content, but it would be great to talk with them at some point in the future.”

He added, “Whether it’s Netflix or Roblox or Epic or Valve, if they have a platform and it makes sense for our content to be there and reach an audience, we’ll definitely investigate it.”

But perhaps Zynga’s biggest venture ahead lies with the hire of former EA executive Matt Wolf to head up its new blockchain gaming division. As the NFT craze sweeps the gaming industry, blockchain startups like Mythical Games, Animoca and Forte have reached billion-dollar valuations in the past few months to help developers create permanent collectible items that can be used across games.

“There’s a lot of capital and talent heading into the space,” said Gibeau, explaining the timing of the decision. “Our founder and chair, Mark Pincus, and longtime board member, Bing Gordon, are very hot on the sector and we believe that blockchain is going to be part of the fabric of gaming long term.”

Gibeau said Wolf is setting up a skunkworks project to identify the best path forward and will be looking at things like how owning a farm in the FarmVille franchise could drive greater engagement and retention.

“We plan to move at Zynga speed so you should start to see some things from us in the coming months,” he said.

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The Coming Of The Police State In America

The Coming Of The Police State In America

Authored by Jeffrey Tucker via The Epoch Times,

The National Guard and the State Police are now…

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The Coming Of The Police State In America

Authored by Jeffrey Tucker via The Epoch Times,

The National Guard and the State Police are now patrolling the New York City subway system in an attempt to do something about the explosion of crime. As part of this, there are bag checks and new surveillance of all passengers. No legislation, no debate, just an edict from the mayor.

Many citizens who rely on this system for transportation might welcome this. It’s a city of strict gun control, and no one knows for sure if they have the right to defend themselves. Merchants have been harassed and even arrested for trying to stop looting and pillaging in their own shops.

The message has been sent: Only the police can do this job. Whether they do it or not is another matter.

Things on the subway system have gotten crazy. If you know it well, you can manage to travel safely, but visitors to the city who take the wrong train at the wrong time are taking grave risks.

In actual fact, it’s guaranteed that this will only end in confiscating knives and other things that people carry in order to protect themselves while leaving the actual criminals even more free to prey on citizens.

The law-abiding will suffer and the criminals will grow more numerous. It will not end well.

When you step back from the details, what we have is the dawning of a genuine police state in the United States. It only starts in New York City. Where is the Guard going to be deployed next? Anywhere is possible.

If the crime is bad enough, citizens will welcome it. It must have been this way in most times and places that when the police state arrives, the people cheer.

We will all have our own stories of how this came to be. Some might begin with the passage of the Patriot Act and the establishment of the Department of Homeland Security in 2001. Some will focus on gun control and the taking away of citizens’ rights to defend themselves.

My own version of events is closer in time. It began four years ago this month with lockdowns. That’s what shattered the capacity of civil society to function in the United States. Everything that has happened since follows like one domino tumbling after another.

It goes like this:

1) lockdown,

2) loss of moral compass and spreading of loneliness and nihilism,

3) rioting resulting from citizen frustration, 4) police absent because of ideological hectoring,

5) a rise in uncontrolled immigration/refugees,

6) an epidemic of ill health from substance abuse and otherwise,

7) businesses flee the city

8) cities fall into decay, and that results in

9) more surveillance and police state.

The 10th stage is the sacking of liberty and civilization itself.

It doesn’t fall out this way at every point in history, but this seems like a solid outline of what happened in this case. Four years is a very short period of time to see all of this unfold. But it is a fact that New York City was more-or-less civilized only four years ago. No one could have predicted that it would come to this so quickly.

But once the lockdowns happened, all bets were off. Here we had a policy that most directly trampled on all freedoms that we had taken for granted. Schools, businesses, and churches were slammed shut, with various levels of enforcement. The entire workforce was divided between essential and nonessential, and there was widespread confusion about who precisely was in charge of designating and enforcing this.

It felt like martial law at the time, as if all normal civilian law had been displaced by something else. That something had to do with public health, but there was clearly more going on, because suddenly our social media posts were censored and we were being asked to do things that made no sense, such as mask up for a virus that evaded mask protection and walk in only one direction in grocery aisles.

Vast amounts of the white-collar workforce stayed home—and their kids, too—until it became too much to bear. The city became a ghost town. Most U.S. cities were the same.

As the months of disaster rolled on, the captives were let out of their houses for the summer in order to protest racism but no other reason. As a way of excusing this, the same public health authorities said that racism was a virus as bad as COVID-19, so therefore it was permitted.

The protests had turned to riots in many cities, and the police were being defunded and discouraged to do anything about the problem. Citizens watched in horror as downtowns burned and drug-crazed freaks took over whole sections of cities. It was like every standard of decency had been zapped out of an entire swath of the population.

Meanwhile, large checks were arriving in people’s bank accounts, defying every normal economic expectation. How could people not be working and get their bank accounts more flush with cash than ever? There was a new law that didn’t even require that people pay rent. How weird was that? Even student loans didn’t need to be paid.

By the fall, recess from lockdown was over and everyone was told to go home again. But this time they had a job to do: They were supposed to vote. Not at the polling places, because going there would only spread germs, or so the media said. When the voting results finally came in, it was the absentee ballots that swung the election in favor of the opposition party that actually wanted more lockdowns and eventually pushed vaccine mandates on the whole population.

The new party in control took note of the large population movements out of cities and states that they controlled. This would have a large effect on voting patterns in the future. But they had a plan. They would open the borders to millions of people in the guise of caring for refugees. These new warm bodies would become voters in time and certainly count on the census when it came time to reapportion political power.

Meanwhile, the native population had begun to swim in ill health from substance abuse, widespread depression, and demoralization, plus vaccine injury. This increased dependency on the very institutions that had caused the problem in the first place: the medical/scientific establishment.

The rise of crime drove the small businesses out of the city. They had barely survived the lockdowns, but they certainly could not survive the crime epidemic. This undermined the tax base of the city and allowed the criminals to take further control.

The same cities became sanctuaries for the waves of migrants sacking the country, and partisan mayors actually used tax dollars to house these invaders in high-end hotels in the name of having compassion for the stranger. Citizens were pushed out to make way for rampaging migrant hordes, as incredible as this seems.

But with that, of course, crime rose ever further, inciting citizen anger and providing a pretext to bring in the police state in the form of the National Guard, now tasked with cracking down on crime in the transportation system.

What’s the next step? It’s probably already here: mass surveillance and censorship, plus ever-expanding police power. This will be accompanied by further population movements, as those with the means to do so flee the city and even the country and leave it for everyone else to suffer.

As I tell the story, all of this seems inevitable. It is not. It could have been stopped at any point. A wise and prudent political leadership could have admitted the error from the beginning and called on the country to rediscover freedom, decency, and the difference between right and wrong. But ego and pride stopped that from happening, and we are left with the consequences.

The government grows ever bigger and civil society ever less capable of managing itself in large urban centers. Disaster is unfolding in real time, mitigated only by a rising stock market and a financial system that has yet to fall apart completely.

Are we at the middle stages of total collapse, or at the point where the population and people in leadership positions wise up and decide to put an end to the downward slide? It’s hard to know. But this much we do know: There is a growing pocket of resistance out there that is fed up and refuses to sit by and watch this great country be sacked and taken over by everything it was set up to prevent.

Tyler Durden Sat, 03/09/2024 - 16:20

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate…

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.

(Shutterstock)

A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.

Long COVID Patients Have Low Iron Levels

Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.

In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.

According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.

But it can jeopardize a person’s recovery.

When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”

The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.

It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”

The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.

1 in 5 Still Affected by Long COVID

COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.

Tyler Durden Sat, 03/09/2024 - 12:50

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Uncategorized

February Employment Situation

By Paul Gomme and Peter Rupert The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000…

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By Paul Gomme and Peter Rupert

The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000 average over the previous 12 months. The payroll data for January and December were revised down by a total of 167,000. The private sector added 223,000 new jobs, the largest gain since May of last year.

Temporary help services employment continues a steep decline after a sharp post-pandemic rise.

Average hours of work increased from 34.2 to 34.3. The increase, along with the 223,000 private employment increase led to a hefty increase in total hours of 5.6% at an annualized rate, also the largest increase since May of last year.

The establishment report, once again, beat “expectations;” the WSJ survey of economists was 198,000. Other than the downward revisions, mentioned above, another bit of negative news was a smallish increase in wage growth, from $34.52 to $34.57.

The household survey shows that the labor force increased 150,000, a drop in employment of 184,000 and an increase in the number of unemployed persons of 334,000. The labor force participation rate held steady at 62.5, the employment to population ratio decreased from 60.2 to 60.1 and the unemployment rate increased from 3.66 to 3.86. Remember that the unemployment rate is the number of unemployed relative to the labor force (the number employed plus the number unemployed). Consequently, the unemployment rate can go up if the number of unemployed rises holding fixed the labor force, or if the labor force shrinks holding the number unemployed unchanged. An increase in the unemployment rate is not necessarily a bad thing: it may reflect a strong labor market drawing “marginally attached” individuals from outside the labor force. Indeed, there was a 96,000 decline in those workers.

Earlier in the week, the BLS announced JOLTS (Job Openings and Labor Turnover Survey) data for January. There isn’t much to report here as the job openings changed little at 8.9 million, the number of hires and total separations were little changed at 5.7 million and 5.3 million, respectively.

As has been the case for the last couple of years, the number of job openings remains higher than the number of unemployed persons.

Also earlier in the week the BLS announced that productivity increased 3.2% in the 4th quarter with output rising 3.5% and hours of work rising 0.3%.

The bottom line is that the labor market continues its surprisingly (to some) strong performance, once again proving stronger than many had expected. This strength makes it difficult to justify any interest rate cuts soon, particularly given the recent inflation spike.

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