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With so much free-to-play MMO competition, Funcom is feeling the heat
With so much free-to-play MMO competition, Funcom is feeling the heat
March 5, 2014 | By Mike Rose

March 5, 2014 | By Mike Rose
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    4 comments
More: Console/PC, Smartphone/Tablet, Business/Marketing



In the wake of financial troubles and clashes with the Norwegian authorities, The Secret World developer Funcom has recorded decreased revenues and notable losses for the 2013 fiscal year.

The company says that while The Secret World and Age of Conan are still its main sources of revenue, the drop in revenue is down to increased competition in the MMO space.

"The activity level decreased leading up to the November and December sale, resulting in lower revenue as expected," reads the report. However, the company was keen to stress that "Player numbers and revenues from Age of Conan and Anarchy Online were relatively stable in the fourth quarter considering the competitive pressure."

Funcom is currently working on free-to-play MMO Lego Minifigures Online, and says that continued investment in this game is also causing a decrease in cash for the company -- it's hoping that when the game launches, this will turn around. An open beta is scheduled for summer 2014.

The company also highlighted the suspicions that have been brought against it by the Okokrim, stating that "No employees of the company have been charged."

For the 2013 fiscal year, Funcom posted revenues of $21.4 million, down from $23.6 million year-over-year, and losses of $4.5 million, compared to losses of $62.2 million (after special write-offs) last year.


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Comments


Rodolfo Rosini
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Not trying to be a troll here but the issue of Funcom was never F2P. It's just that for the resources invested their games underperformed because they sucked and appealed to a small audience.

Diana Hsu
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That's too bad. I'm a big fan of The Secret World, and have been bugging my friends to play with me ever since it came out. But it wasn't a game built to be free-to-play, which makes some of the free-to-play mechanics feel tacked-on.

William Johnson
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I'm a big fan of the secret world. It doesn't have elves, it's dark, and it doesn't hold your hand when it comes to quests and figuring stuff out. I want it to do well because I want to see more stuff like this out there. The lengths that they went to to make some of the quests where you have to go check fake blogs they created for clues to solving the quests is just amazing and should be praised. The game has its faults but I think it was a good step in the right direction. Keep em coming, funcom!

Jim Thompson
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The more players in the game, the more winners.

Here's hoping FunCom finds a revenue stream with Legos.


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