And you will meet technology that promises to build you custom clothing. You dont even have to leave your home. First, lets get headlines from carol massar. Cbs reporting secondquarter profit topping estimates. Doubling the buyback and boosting the Cash Dividend as it looks to counter a decline in revenue in operating income. Last season, cbs had the largest ratings decline of the four big u. S. Networks. Newscorps reporting losses as it completes its first year as a standalone company. The wall street journal continues to face difficulties, with sales falling 6 . Zynga out with earnings after the closing bell, posting secondquarter results at the low end of the forecasts. Zynga stock is falling in afterhours trading. Those are the top headlines at this hour. Thanks, carol massar. Shares of zynga down 6. 5 . We turn to the gaming industry. I am joined by bloomberg west editor at large cory johnson. Also, a guest from idg. And from bloomberg intelligence, providing context in a variety of industries. What is going on with zynga that is different from other companies . The difference between zynga and its peers is that zynga started as a Gaming Platform on facebook. Of course, the challenge for zynga has been how to manage the shift to mobile devices. Based on numbers we have seen today, there is no clear sign the Company Knows how to get user growth back up on mobile devices. Cory johnson, is this all about the inability to get mobile gamers to use the games . Thats where they need to have success. That is where it is going. It is an arena where no one is really dominant. You dont have Great Success from activision and the like. It is clearly where the focus is. Zynga saying today that 45 of r d, half of r d spending will be on new games. They are clearly focused in this mobile arena. Would you invest in zynga . You know, currently with zyngas performance, what we see with acquisitions, products, its hard to make an investment case. When you think about what would really push zynga out of what it has fallen into, it is an outsized hit game. You are dealing with a company where the dna is optimization, but you will never be able to find a new, exciting product category that is what they need to get to the next level. What do you mean by dna optimization . You are dealing with a company where the ceo is quoted to have said, i dont care about finding new games, this copy what other people do and do it slightly better. Cory johnson, the ceo of zynga, mark pincus, hes been, i dont want to say games, but he has been doing something with the money at zynga that might lend the company a credibility problem, no . I called attention to it before the ipo, but no one seemed to care at the time. They took money from future period by making a legal adjustment, deciding they would count the money now. It is a legal adjustment. If you understood the one paragraph of the filing that described that, you could see what they are doing. The problem is, when the future came, the money was not there anymore. So they created a financial structure that was going to hit an air pocket nine months after the ipo or so. It certainly did that. The inability to replicate the hits of the past, whether they were copied or organically created, the inability to create that success really hurt the company because they took the accounting adjustment to really create an air pocket in the revenues. The chief executive at the time, mark pincus, in that air pocket managed to make 200 million out of the sale of his stock. What does he need to do in this mobile arena . You mentioned facebook is being the original platform to play the zynga games. Why do you need a separate platform if you have a mobile device dont people download apps . Isnt this something you have a relationship with . That is the trap zynga falls into. App usage is almost 80 of total mobile usage, very different from when zynga started. Zynga needs to adapt and have the Smartphone App type of games. Thats the usage shift their dealing with, and they have not been able to get to it yet. Tyler, what do you think about selling the company . Would anybody want to buy zynga now . The most valuable asset zynga has is its user base. So maybe some of the other casual gaming players. The issue is theres not much other companies cannot get directly for user acquisition, so its a tough investment case. Cory johnson, what happens to technology such as the kind used by zynga . It is relatively simple to reproduce . It is pretty difficult. One of the things we know about mobile advertising, some of the most successful advertising is getting people to buy other apps. The most successful pushing other people to buy apps and it downloads. So zynga should know a lot about the gamers, people who play games on their phones. That is a valuable market. We have seen statistics about people who play games on their phones. An enormous number of people. Hes the kind of guy who should be able to find it and manage the Creative Process to make it. What he did at microsoft is fairly impressive. Hes the kind of guy you want leading such an effort, but fundamentally they have to find a great game, whether it is a tiger woods golf or a nonbrand named angry tetris birds pong combination. We are onto something there. Angry birds pong tetris. I see it in our future. I think the clear competitor is king. King has done very well with candy crush. The worrying thing is king has 660 employees and zynga has almost 2000. Their revenue and user base is larger. That does not make a good comparison for zynga. There are competitors out there who might be able to do very well. So it is all about producing hits. That is the point, right . That you never know where the next success is. To do all this acquisition and see candy crush appear as a massive i know you are just waiting to go off and play a game of Kim Kardashian. Isnt it all about celebrities . Celebrities can help, but not necessarily. The Kim Kardashian game on the iphone is supposed to be a lot of fun to play, not only that it has kims name attached to it. Is that the key to success . Its all about the gameplay. The brand can only help to a certain extent. People spending day by day, it comes down to the game. You each get one pick. Favorite online game . For me, candy crush. Cory johnson, how about you . Clash of clans, all the rage. Tyler, what is your favorite . Dota 2. Pc gaming is seriously underappreciated. We see a lot of opportunities there. We want to thank you all very much. Coming up, we will stay with gaming, but where does one go to get an undergraduate degree in gaming . We talk to one of the few schools in the United States where you can study game design. A b. A. In making games. That is next. This is taking stock on bloomberg. How can you get into the videogame industry . How about a bona fide undergraduate program devoted to the videogame design world . Tracy fullerton joins us live from los angeles. Start by explaining to people how the actual gaming curriculum at usc was put together . Actually, it began with a really generous gift from electronic arts. As the medium of games is coming into its own, they wanted to give back. There are so many young people who want to get into the industry, and they came to us with this gift and a lot of insight, to help us set up this program. You are an experimental game designer. You have written books. Tell us about your background. I have been a game designer for just over 15 years now, and i worked on Interactive Television games, multiplayer games, some of the earliest casual games. You name it, i have probably made a game about it. You made a game on the weakest link on nbc. What makes a good game . Games are things that challenge us intellectually and allow us to be creative, to test ourselves, to connect with other people, and great games add to our lives in this way, enrich our lives. We have all had an experience with some game or another, even people who are not gamers, when i push then it turns out there is a game they played that they loved, that changed their life in some way. You helped found a Company Called spiderdance. One of the games that they helped create was history iq. What are some misconceptions for people who dont know a lot about the gaming industry, about game designers . One misconception is that they play games all day. We work for a hard on everything it takes, including programming, visual design, a psychology of players, business management, audio, theres so much that goes into a game. One of the myths is that we sit around and play games. We work very hard. The skills we are teaching kids in game design are really important 21st century skills. They learn to code, to work in teams, visual design, they learn leadership and entrepreneurism, that can leave them not only into games, but many other careers in and around Digital Media and technology. Tell us a little bit about the actual scale of the program, how many students, how many professors, how many teachers and so on there is about 300 students. We are a Multidisciplinary Program that spans the school of cinematic arts, Interactive Media and games division, and the school of engineering and Computer Science division. We have degrees at both the undergraduate and graduate level, so the 300 students work in Interdisciplinary Teams and work collaboratively with students across the school, in business, music, animation, and many other fields, to put together the really amazing student games they have made. The graduates of the program, tell us what happens to some of them. You know, many of them go right into industry, and that is great. Their parents are really happy about that. But recently we have been seeing many of the graduates strike out on their own and start their own companies. For example, some of the most famous graduates of our program formed a Company Called thatgamecompany which created journey, game of the year in 2013. So we see a lot of students interested in doing this. We started an entrepreneurial track so they can create a company that allows them to take the projects out as commercial games in the future. Quickly, does Tracy Fullerton have a favorite game . [laughter] you know, i have so many favorite games, when people ask me it is hard to choose. Its almost always the game i am playing right now. Which is . One of my favorites is called zombies, run. A game you play while you are out running. Zombies in a postapocalyptic world are chasing you while you are running, and you have to help the survivors get resources and keep on surviving. We hope you outrun those zombies. [laughter] Tracy Fullerton, head of the university of southern californias game innovation lab. Next, the business relationship between india and the United States. This is taking stock on bloomberg. This is taking stock on bloomberg. I am pimm fox. Russia retaliates against the u. S. , imposing a ban on food imports from the u. S. And europe. Here to discuss the ban and indias relationship with the u. S. Is karan chanana, chief executive of amira nature foods, a global provider of packaged specialty rice. Thanks for being here. Thank you. Lets talk about this ban the russian government has imposed on imported Food Products from the u. S. And western nations. Have you ever heard of using food as a retaliatory tool . I think a better thought through mechanism would have suited them more, but knowing what the situation is, they would have definitely thought about it. This is giving opportunities to some emerging markets and brands to get a foothold into the russian market, and maybe level the Playing Field for some of the unknown brands and emerging brands. The emerging brands could take advantage of this opportunity, move into this . But there are all kinds of laws and regulations about what can and cannot be imported with and without tariffs. India, for example, having to do with the world trade organization, has put on hold their membership in the wto for certain reasons. I wonder if you can explain what is going on . Indias situation is unique. This is the biggest opportunity for the west to sensitize itself to 1. 3 billion people on the planet in india. India has 1. 2 billion people, two thirds of which live off the land. Off of farming. Meaning the gdp contribution per capita of those individuals is based on that. So if the world will come to recognize that, and india has to be allowed to provide food for their own people. This has to do with stockpiling food. You have a situation where the government pays rice farmers more than the market rate in order to encourage them to grow rice, because then they stockpile some of that rice in order to forestall any future food disaster or food shortages. The way it works, rice is not a commodity. It is a staple that provides nearly a quarter of the calorific value to the population on the planet. You cannot traded on an exchange or buy it hedged. It is all physical. The government of india needs to provide for security. It is less to do with stockpiling and more with sustaining Food Security. As a result, there is a mechanism in place in india and most countries, actually. In the west to collect intervention price. If the price is below a certain threshold, the government supports. It is not unique in india. The same is done in thailand, china, and emerging markets. Unlike the west, emerging markets do not have a Social Security mechanism. This is the only tool available to the government for equitable distribution of income. At the same time, it provides a double benefit of feeding the population. Today, we have a human rights crisis or a crisis in a lot of places that do not do this. Can the world risk 1. 3 billion people not having Food Security . Im glad you mentioned the indian government, because there is a newly, relatively newly elected government in india. I wonder if you could tell me from a business perspective what this means for you. As a matter of fact, i said earlier, india has changed. We have a young population. 100 Million People came into the working age over the last five years. India has given a clear mandate to a single government after nearly 30 years. That has brought about a very clear, strong government with a clear view and an eye on infrastructure development, which is a big opportunity to the west. Sensitize yourself to india, and then ask for market access. Imagine all the Foreign Direct Investment and retail. I think it would have more legs to stand on if the western powers said, you want to secure food for your people, we will help you do that. Work out a mechanism where big retailers like walmart get access to the Indian Consumer as Food Security. We have to leave it there. Thank you very much, karan chanana, chief executive of amira nature foods. This is taking stock on bloomberg. I am pimm fox. Targeted air strikes to protect american personnel and a humanitarian effort to help save thousands of iraqi civilians who are trapped in a mountain without food and water and facing almost certain death. Let me explain the actions we are taking and why. First, i said in june that the isil began anp intense across iraq, that the United States would be prepared to take targeted military action in iraq if and when we determined the situation required it. These terrorists have continued to move across iraq, to where american diplomats and civilians serve at her consulate and American Military personnel advise iraqi forces. To stop the advance, i have directed our military to take targeted strikes against isil military convoys should they moved toward the city. Stay vigilant and take action if these terrorist forces threaten our personnel or facilities anywhere in iraq. Urgentalso providing assistance to the Iraqi Government and Kurdish Forces so they can more effectively fight against isil. Second, at the request of the Iraqi Government, we have begun actions to help save iraqi civilians stranded. As isil has marched across iraq, it has waged a vicious andand against iraqis minorities including christians. Beenntless iraqs have displaced. Chilling reports indicate mass executions and enslaving women. Yazidi women, men and children have fled for their lives in the thousands. They are now hiding high up on the mountain with little but the clothes on their backs. They are without food, without water. People are starving. Children are dying of thirst. Forces belowil have called for the destruction of the entire people, which would constitute genocide. These innocent families are faced with a horrible choice. This end the mountain and the descend the mountain and be slaughtered or die of thirst and hunger. AndUnited States cannot should not intervene every time there is a crisis. Let me be clear about why we must act. When we face a situation like we do on that mountain with innocent people facing the prospect of violence on a horrific scale, when we have a mandate to help in this case a request from the Iraqi Government and when we have the capabilities to help avert a massacre, i believe the United States of america cannot turn a blind eye. We can act to prevent a potential act of genocide. That is what we are doing on that mountain. I have authorized targeted airstrikes if necessary to help forces in iraq as they help to break the siege and protect the civilians trapped. American aircraft have begun conducting humanitarian airdrops to help these desperate people survive. Earlier this week, one iraqi in the world cried, there is no one coming to help. Today, america is coming to help. We are also consulting with other countries and the United Nations who have called for action to address this humanitarian crisis. Many of you are rightly concerned about