Funcom Q1 2017 financials: ‘Most profitable quarter ever,’ Secret World Legends delayed on Steam

Conan Exiles performed beautifully for Funcom, at least during the first part of this year, the company’s investor report for the first quarter revealed today. The survival sandbox’s early access launch in February helped propel Funcom’s once-beleaguered revenues to five times their state this time last year, making it the “most profitable quarter ever” in the history of the studio. The Xbox One and PlayStation 4 releases are on track for Q3 2017 and Q1 2018, respectively.

The company reiterates that the reboot of The Secret World as Secret World Legends will make its recently announced June 26th debut, but the Steam launch will be delayed until July 31st as a result of “crowded market conditions with multiple MMO releases in May/June on Steam” — those being Black Desert’s Steam launch, Elder Scrolls Online’s Morrowind launch, and Final Fantasy XIV’s Stormblood. Seriously, nobody else should even try launching that month.

“The Company expects the majority of players after launch to be newcomers to the game, but is also working to make it worthwhile for as many veterans of The Secret World as possible to continue playing Secret World Legends. Due to the high uncertainty regarding a Free to Play business models the Company expects the development team to need to tweak the monetization mechanisms of the game in the months following launch. Paid User Acquisition will gradually be tested and introduced in tandem with the monitoring and tweaking of the game’s monetization KPIs.”

The report reiterates that Funcom Oslo is concepting another Conan game, while Funcom Durham is working on yet another project “in [an] early concepting stage.” Staffing is expected to rise to 120-130 by the end of the year.

Anarchy Online and Age of Conan, which were unceremoniously maintenance moded in last quarter’s report with no advance warning to press or players, are not mentioned, though under the strategy section, there’s this bit:

“Additionally, the company will keep developing and supporting the existing MMORPGs as they are an important source of revenue and drive the internal IPs.”

Source: Investor report. Thanks, Daniel!
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strangesands

Honestly, they should just wait until October for a thematic launch.

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Kevin McCaughey

It seems to just be about the numbers now at Funcom. Players don’t matter unless it is new ones with deep pockets and no sense. Very disappointed,

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Denice J. Cook

I have the feeling that Funcom has been skirting bankruptcy for many years now. Running in the black is the only other option besides closing down for good.

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Phil Gillespie

Game studios don’t run on pixie dust and magic tricks, they are no different to any other organisation.

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Zen Dadaist

“Additionally, the company will keep developing and supporting the existing MMORPGs as they are an important source of revenue and drive the internal IPs.”

Meaningless copypaste from their previous quarter’s report. Those communities have been cut off entirely from all FC communications. I hear rumours that a GM was spotted in AO a couple of weekends ago. That’s the level they’re at – not one communique to anyone about anything. Just dropped like a hot potato. I get that they’re excited about CE and SWL but talk about a kick to the stomach to those of us who were dedicated enough to have paid them for subs over the years for their older games. We were not given so much as a ‘bye’ by a community staffer. First sign of success is to give the middle finger to those who held on.

Yes, I am feeling shittily treated by FC. Yes I am regretting the support I showed them through the years.

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kanbe

I agree they should deal SWL AS its timing is horrible for releasing. That said since they’re only delaying the steam launch instead of the full game I’m getting the feeling that “launch” is going to be more of an open beta kind of deal.

With the info we have now about how some zones and weapons arnt even in the closed beta yet that’s my impression

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Megalus Doomslayer

To summarize: Funcom has no expectation that their main reason for this project will in anyway result in the intended goal… and I thought the Dragon was chasing after a gamble…

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Jeffery Witman

Due to the high uncertainty regarding a Free to Play business models the Company expects the development team to need to tweak the monetization mechanisms of the game in the months following launch. Paid User Acquisition will gradually be tested and introduced in tandem with the monitoring and tweaking of the game’s monetization KPIs.

This is what happens when you run a game studio from the accounting office. RIP TSW.

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Megalus Doomslayer

To paraphrase Funcom: You know how we told you up until this point that this was going to be a financial cash cow? … Yeah, we lied out of our asses on that one… big time…

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Samuel Johnston

What they said was more like developing the game further was not really sustainable in its current form, and they hope that F2P will be profitable enough for them to continue developing it.

The above quote sounds more like they want to tweak monetization once it’s live, because you can’t always guess perfectly what the best services, items and price points are, until it’s available to consumers and you gather some data and feedback. Being open to adjustments in that regard just seems like good business sense.

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Koshelkin

Good thing I waited before I took the vacation from work for 26th June but I had the feeling it gets delayed anyway.

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Nathan Aldana

am I the only one who’s eyes glazed over at the sheer amount of code words and jargon about monetization theyre adding to secret world as though that was the most important thing to have ready for launch

Alfredo Garcia
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Alfredo Garcia

Well, it is essentially the only reason they are relaunching it. Have to make sure they have a smooth pipeline set up for receiving all that sweet lockbox cash.

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Life_Isnt_Just_Dank_Memes

when exiles launched i was stoked for them because i thought they turned it around. the last few months the way they’ve handled the tsw rebranding and the conan stuff has been awful and i totally see why they have been in bad financial shape in the past. they don’t seem to know how to do long term properly.

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Rottenrotny

annnnnnnd it’s all down hill from there.
Sure they got a bump from the early Conan Exiles Sales, but me and everyone I know stopped playing that game and there’s not much hype about it anymore.
What else do they have? A TSW reboot? Don’t see much profit going to happen there.