With so much free-to-play MMO competition, Funcom is feeling the heat
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.