With the social gaming giant teetering on the edge of a cliff, the Mark Pincus explains how he sees things.

This article titled “Zynga CEO Mark Pincus on the future of the company: part one” was written by Keith Stuart, for guardian.co.uk on Wednesday 1st August 2012 09.05 UTC

Zynga is in trouble; at least, that's what the markets tell us. The dominant western force in social gaming, the company that brought us the all-conquering agricultural sim Farmville and its many spin-offs, has just delivered second quarter financial results that fell far short of analyst expectations.

The result: an almost 40% drop in share value, and many leering, gleeful predictions of disaster and decline. For its own part, Zynga has come out and attacked Facebook, which still houses most of the software developer's key games. John Schappert, the company's chief operating officer, claimed to analysts that changes to the social network favoured newer titles, leading to a drop in user engagement for legacy brands such as Zynga's Ville titles. Others argue that the Facebook gaming fad is losing traction, with players swarming to mobile.

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