Latest News
spacer View All spacer
 
November 20, 2009
 
Video Game Watchdog National Institute On Media And The Family Shutting Down [9]
 
GDC 2010's Experimental Gameplay Workshop Calls For Submissions
 
Opinion: Rethinking Player Death [27]
spacer
Latest Features
spacer View All spacer
 
November 20, 2009
 
arrow Upping The Craft: Susan O'Connor On Games Writing [5]
 
arrow Small Developers: Minimizing Risks in Large Productions - Part II [5]
 
arrow iPhone Piracy: The Inside Story [48]
spacer
Latest Blogs
spacer View All     Post     RSS spacer
 
November 20, 2009
 
Planckogenesis, Part II: Song Structure & Gravy Train
 
Designing Games Is About Matching Personalities [1]
 
An Indie Developer’s “Biggest Mistake” [9]
spacer
Latest Jobs
spacer View All     Post a Job     RSS spacer
 
November 20, 2009
 
Sony Computer Entertainment America
Developer Support Account Manager
 
Monolith Productions
Sr. FX Artist - Monolith Productions - 113935
 
Monolith Productions
Sr. Software Engineer, Network - Monolith Productions - #114694
 
Monolith Productions
Sr. Concept Artist - Monolith Productions - #113768
 
Sony Computer Entertainment America
UNIX Systems Administrator
 
Microsoft Game Studios
Animation Director - Halo
 
Microsoft Game Studios
Lead Environment Artist - Halo
 
Radical Entertainment / Activision
Mission Designer (Intermediate)
spacer
About
spacer News Director:
Leigh Alexander
Features Director:
Christian Nutt
Editor At Large:
Chris Remo
Advertising:
John 'Malik' Watson
Recruitment/Education:
Gina Gross
 
News

  Funcom CFO Resigns As Losses Continue
by David Jenkins
4 comments
Share RSS
 
 
February 23, 2009
 
Funcom CFO Resigns As Losses Continue
Advertisement
Norwegian developer Funcom, creator of massively multiplayer online game Age of Conan, has reported a $23.3 million loss in its fourth quarter financial results – causing CFO Olav Sandnes to resign.

The company saw revenues rise from $1.2 million to $8.7 million from the same time last year, but an impairment charge of $22.8 million saw its potential profits take a serious hit.

Although Funcom has not revealed new subscriber figures it recently had to close 31 of its 48 servers due to lower-than-expected user levels. The company claimed a userbase of 415,000 for the game’s launch in May 2008, although it has since admitted that the average subscription period has been lower than expected.

CFO Sandnes announced his departure alongside the results, apparently leaving in order to take up a position in a different industry. His departure follows that of Funcom co-founder Gaute Godager last September, who claimed to be "dissatisfied" with Age of Conan.

"Olav Sandnes has made important contributions in Funcom, particularly in respect of developing the company’s financial reporting, controls and management systems and as a member of the management team", says CEO Trond Aas.

"Funcom is a company with a substantial potential based on a unique combination of skill sets in a fast growing global market. I wish Trond Aas and the rest of the organization all the best in realizing the full potential of the Company," said Sandnes.
 
   
 
Comments

Erik Harg
profile image
This is indeed a negative sign, and although Mr. Sandnes said, according to Norwegian financial web news site E24 (http://e24.no/boers-og-finans/article2942422.ece) it was "mostly due to him, and not the company", this is either very bad timing or, in part at least, due to the poor financial results Funcom have shown as a result of AoC's mediocre ability to keep its players.

Dave Smith
profile image
can't put all your eggs in one basket, especially in the high risk MMO basket.

Ken Nakai
profile image
It's all a load of BS. The CFO has nothing to do with subscriber base and the success of a game. He's just ducking out and maybe trying to help out by taking some of the flak from the investors/shareholders. AoC's mediocrity, buggy launch, and bad timing (WAR probably sucked a lot of people away from AoC right when AoC needed them to stick around) are all at play here. I couldn't believe how unpolished the game was (reminded me of Vanguard).

@Dave
Definitely true...especially when they don't really have a proven track record of strong successes. I know Anarchy Online's still around but it served a niche and they didn't handle customer support/updates very well there either.

The most amazing thing I'd seen in an MMO was what they did at Funcom. They patched the game and REQUIRED you to update to a point release of DirectX. What game does that? It's not like they launched the game with the requirement. They patched it months later and required it. I'll be they lost a bunch of people then who were barely loyal and took that as a sign of just how much Funcom cared about their installed base. Mismanagement through and through.

Mike Shiratti
profile image
AoC is a truly amazing and enjoyable game, I was there for launch, waited a few months, and am now a happy subscriber once again.

I find the game more enjoyable than any MMO I've played "hardcorely" and I've player quite a few.

I would hate to see it die.


none
 
Comment:
 


Submit Comment