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Game maker’s R&D costs weigh on profit

Jeff Chiu/Associated Press/File 2011

Before yesterday, Zynga’s stock had gained 44 percent since its December initial public offering. Above is CEO Mark Pincus.

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Zynga Inc., the biggest developer of games on Facebook, fell the most ever after a report showed product-development costs weighed on quarterly profit. Earnings fell 34 percent to $67.8 million from a year earlier, the San Francisco company said. Research and development costs jumped more than eightfold to $444.7 million last quarter. Sales and marketing expenses almost tripled, to $112.2 million.

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