In a sort of warning for the web masters and web publishers, who use excess of SEO instead of quality content, to be penalized for undermining the value of the content, Google’s Matt Cutts has declared that  Google under way for developing a search ranking penalty for sites which are “over-optimized” or “overly SEO’ed.”
Matt declared this during a meet with a panel of Search Engine Land’s Editor-In-Chief, Danny Sullivan and Microsoft’s Senior Product Marketing Manager of Bing at SXSW. The discussion on the panel surfaced Google’s work on the mode and methods of penalties for the website which are over optimized for search engines and progress made by Google during the past few months. 
According to Matt Cutts, the new over optimization penalty will be regulated over search results in the upcoming month or next two-three weeks. Google wishes to make it a “level the playing field,” Cutts said. The entire purpose o this extensive exercise is to give the sites with good content better share over sites which are only good at SEO. It is now level playing field of overly SEO versus Good content. It is an effort on Google’s part to make GoogleBot more efficient in caching sites and reprimand those who use excess of keywords on a page or exchange too many links. There are many engineers in Google campuses who are working on it. Here is an excerpt from one of the Matt’s videos on the topic.

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