Funcom financials trend downward, new CEO appointed

    
55

While it could have been worse, Funcom’s Q1 2015 financials could have been a heck of a lot better, too. In yesterday’s financial report, the company announced that its revenues dropped $144,000 from the previous quarter, bringing in $2.77M since the start of the year. Its main money makers are still Age of Conan and The Secret World.

However, not all is doom and gloom in Funcom’s world. Operating costs are down significantly for the studio, and it just appointed a new CEO, Rui Casais, who took up the position on May 13th.

A big portion of the report was devoted to the upcoming business model shift to buy-to-play for LEGO Minifigures Online. Funcom admitted that “monetizing the game has proven challenging” but has hopes that the new model plus the game’s summer release on tablets will help its outlook significantly.

Source: Q1 2015 financial report. Thanks, Nordavind.
newest oldest most liked
Subscribe to:
luxundae
Guest
luxundae

“However, not all is doom and gloom in Funcom’s world. Operating costs
are down significantly for the studio, and it just appointed a new CEO, Samuel Chandra . . .”
Fixed that up.  I think they could do with some long term vision.

tenfootgoatman
Guest
tenfootgoatman

SwobyJ tenfootgoatman When a game is changed for the worse you can expect it to be talked about for years in forums . Just look at Star Wars Galaxies NGE I never played that now defunct game but even I know that the new game experience was terrible given the amount of people who still mention it . TSWs EPE is very similar .

Project54
Guest
Project54

Oh Funcom, I love what you do but you always just slightly miss the mark, both with the games and the business model. Let’s compare two examples.

TSW – Love the game, bought the grandmaster pack on release (taking a gamble you would go buy to play and it would be beneficial – it worked out). I return to and play the game all the time, but you’ve not had a penny out of me since 2012. I feel slightly guilty about that, I mean it’s great I’m set for ‘life’ but I can’t shake the feeling that the money from 2012 is long gone and despite being a huge supporter and fan of the game you get nothing from me now, I’m just a cost.

SWTOR – Middle ground feelings about this game, you got a collectors edition purchase out of me at release, and continue to get a on/off trickle of money out of me since, probably around £50 a year, but I don’t enjoy giving you money. 

As a consumer the TSW model is great, I paid a lump sum (similar to the cost of SWTOR collector’s edition) at release and I’m set for life, get monthly points and don’t need to spend another penny. Far better than the SWTOR system where I have to continue to pay to play. It’s sad though the end result is I end up continuing to give money to a company I don’t really like, that makes a lot of money, while not giving any money to a company I really do like, that doesn’t make a lot of money.

For all the hate that EA deservedly gets, it knows how to extract money from consumers. As much as I hate to say it, Funcom on the other hand is just too consumer friendly, they don’t give me any incentive or reason to give them any money. Any business model that means your biggest and most loyal fans stop giving you money has got to be broken. It might explain why your financials never look healthy.

CasualSlacks
Guest
CasualSlacks

Putting the LEGO game out on tablets might prove to be an excellent idea IF they can optimize performance. On PC, I haven’t checked it out because I still have Diablo 3, Path of Exile, and Marvel Heroes to someday get through. I’m far more interested in those IPs than LEGO. But I can’t play any of those on an Android tablet. Even, if it only comes out on iOS, I will continue to ignore it, but it’ll make a lot of money at the right price point.

SwobyJ
Guest
SwobyJ

tenfootgoatman Oh my god, has it been months. Let. It. Go.

PurpleCopper
Guest
PurpleCopper

Remember when Funcom’s stock price were at a nice high until Secret World launched and then it plummeted?

Styopa
Guest
Styopa

I actually play it, genius.
So what was your point, again?

Kherova
Guest
Kherova

Justin, it seems to me that I get opinions to news like this only in the podcast, but not in the site as much. Am I wrong or is this accurate?

SomewhatEclectic
Guest
SomewhatEclectic

dorn2 Porculasalvania SoMuchMass Oddly enough TSW seems to have mostly stopped making outfits for sale in the store because it wasn’t cost effective enough as compared to the story Issues.

dorn2
Guest
dorn2

wjowski 
Garriot at least peripherally worked on a succesful MMO once.  You can’t say the same about anyone at Funcom.