via gamepro.com
Has the bubble finally burst for the social gaming giant? Gamasutra reports that ahead of the company's initial public offering, Zynga has reported year on year profits that were down by approximately 95% -- $1.3 million for the quarter ending June 30 versus $27.2 million for the previous quarter ending in March.
Zynga attributes its decline in profits to several major factors: the lack of any new game launches in the first half of 2011 prior to Empires and Allies on March 31; a higher than normal spend on hiring, acquisitions and international growth; and Facebook's requirement this summer that all game developers adopt its own Facebook Credits payment system, which takes a 30% cut of revenue.
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