This 21 year old CEO has a lot to learn. The fact that his first instinct is to rush off to the web to ask strangers how to handle this situation might indicate that he doesn't have the right stuff to lead a company. At least not now.
If they're clocking in at 8, clocking out at 5, and simply playing ping-pong all day, then get rid of the ping pong table and get rid of the devs.<p>If they're working when they need to and getting the job done, then they're capable of managing their time well enough to do what they were hired to do, even if they seem unfocused.<p>But even if it was the latter, I would think that this would distract anyone who was attempting to focus and work.