Gamasutra dropped a bombshell reporton Monday that Zynga, just ahead of their planned IPO, had reported a 95% drop in their year-over-year profits from $27.2 million to $1.3 million. The social gaming juggernaut continued to lose momentum in all major categories: its total revenues grew only 15% last quarter versus 24% in the previous quarter. Its virtual goods sales and ad revenues were down 4% from the prior quarter, and their total daily active user count across all games also dropped 4% from 62 million to 59 million. Has Zynga lost the interest of its users, or are market trends eroding Zynga’s core revenue streams? Continue reading →