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General: Funcom Financial Report Reveals Decline in Fiscal 2014

SBFordSBFord Former Associate EditorMember LegendaryPosts: 33,126

The Funcom 2014 financial reports have been published that show a slight growth over the previous earnings quarter but an overall decline in 2014 over 2013. "Aging titles" are cited for the decline. According to the investor presentation, earnings grew ~$300,000 over Q3 2014. Additionally, LEGO Minifigures Online is in line with predictions that monetization of the game is taking more time than expected.

The report also reveals:


  • the "work-for-hire" portion of the company will be sold

  • creditors will delay the maturation of convertible bonds and working capital loans until 2016

  • restructuring will be implemented

The investment report also shows significant declines in revenue year over year as this chart indicates:


 


image


 



 


Thanks to 430005 for pointing the reports out in this forum thread.


¯\_(ツ)_/¯ 


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Comments

  • DMKanoDMKano Member LegendaryPosts: 21,918

    Hang in there funcom - you just need one small win to keep going.

    If there was ever a company needing just one small victory in 2015 its Funcom.

  • HorusraHorusra Member EpicPosts: 4,148
    Other words Funcom employees are in for a rough time.
  • DakeruDakeru Member EpicPosts: 3,744

    Like I said in the other thread - Lego will not be profitable for them because paying the sub only means that they enable you to grind grind grind world 1 until you have enough chars to enter world 2. Rinse and repeat.

    I believe the decision to handle it like this was rushed cause it wasn't like that in beta. They should have come up with a payment model that makes sense.

    A shame really because the game is actually fun.

    Harbinger of Fools
  • elockeelocke Member UncommonPosts: 4,335
    TSW needs that next patch ASAP.  The one that changes combat for those of us who hate it currently.  I plan to play it once it hits.  Any day now, Funcom, any day. ;D
  • Dreamo84Dreamo84 Member UncommonPosts: 3,713
    Well, when Free Realms closed, Smedley pointed out that it's very hard to monetize a children's game and I believe it.

    all parents don't give up their credit cards as easy as some people think.

    image
  • kb4blukb4blu Member UncommonPosts: 717

    I hate to say this but, I don't really care if Funcom goes under.

    As a past player of Anarchy Online I have seen how they have totally screwed up Anarchy Online.  Who ever decided to tack on Shadowlands should have been fired and banned from ever working on games ever.

    They first talked about their graphics up grade in 2006 !   I seriously doubt that it will ever happen.

    I am usually a fairly easy going person but what Funcom did to AO brings out the A@@ Hole in me.

     

  • DMKanoDMKano Member LegendaryPosts: 21,918
    Originally posted by elocke
    TSW needs that next patch ASAP.  The one that changes combat for those of us who hate it currently.  I plan to play it once it hits.  Any day now, Funcom, any day. ;D

    One thing I can tell you is that patches don't bring back players for a game that's not massively popular. Its a wasted effort - yes this is probably a little known fact outside of online gaming industry but its true. Their efforts are much better spent getting another smaller game off the ground instead.

    Also patching a complete combat overhaul is highly unlikely.

     

  • orbitxoorbitxo Member RarePosts: 1,936

    "The Live Games,Anarchy Online, Age of Conan,and The Secret World

    have delivered stronger than anticipated revenues in December 2014, contributing to

    revenue of USD 2,098 thousand in 4Q14 compared to USD 2,214 thousand

    in 3Q14." -FC report

     

    -after looking further into their report- THIS IS what really mattered imo!- they have done an amazing job getting new and maintaining TSW player base!

     
     
  • orbitxoorbitxo Member RarePosts: 1,936
    Originally posted by DMKano
    Originally posted by elocke
    TSW needs that next patch ASAP.  The one that changes combat for those of us who hate it currently.  I plan to play it once it hits.  Any day now, Funcom, any day. ;D

    One thing I can tell you is that patches don't bring back players for a game that's not massively popular. Its a wasted effort - yes this is probably a little known fact outside of online gaming industry but its true. Their efforts are much better spent getting another smaller game off the ground instead.

    Also patching a complete combat overhaul is highly unlikely.

     

     

    ummm-tell that to new and returning players in Wildstar....

    <.<

  • elockeelocke Member UncommonPosts: 4,335
    Originally posted by DMKano
    Originally posted by elocke
    TSW needs that next patch ASAP.  The one that changes combat for those of us who hate it currently.  I plan to play it once it hits.  Any day now, Funcom, any day. ;D

    One thing I can tell you is that patches don't bring back players for a game that's not massively popular. Its a wasted effort - yes this is probably a little known fact outside of online gaming industry but its true. Their efforts are much better spent getting another smaller game off the ground instead.

    Also patching a complete combat overhaul is highly unlikely.

     

    Well, they bring ME back, so...

    Also, it's not a complete combat overhaul based on the state of the letter that mentions it but it does change the part of combat most people hate, the tedious TTK and annoying resistances of regular mob in the open world.  That IS on the PTS already and what I'm referring to.  ESO just had an awesome patch 1.6 change a ton of stuff, combat is more fun now.  Also had the same thing happen with LOTRO.  Before Moria, the combat was horrible and the game, unfun.  After Moria, I bought a lifetime sub and have played it off and on through the years since and love the game now after hating it before Moria.  

  • HanguriHanguri Member Posts: 4

    It's sad because their games actually rock.

    Just the fact that it takes one kickass of computer to run pretty much ANY of their games that is holding them back.

  • demadildemadil Member UncommonPosts: 88
    Originally posted by Hanguri

    It's sad because their games actually rock.

    Just the fact that it takes one kickass of computer to run pretty much ANY of their games that is holding them back.

     Huh? Where do you live,Stillhavea486ville?

  • RobsolfRobsolf Member RarePosts: 4,596
    Originally posted by elocke
    TSW needs that next patch ASAP.  The one that changes combat for those of us who hate it currently.  I plan to play it once it hits.  Any day now, Funcom, any day. ;D

    Yep!  I haven't logged in in months, but I might when that comes out... and might buy the side mission bundles, to boot.

  • DerrosDerros Member UncommonPosts: 1,216

    I tried going back to TSW, I got up to tokyo, saw the ageis system and raged.  It feels like it adds another clunky layer to a game with already clunky (but I could deal with it) combat.  Dont like it whatsoever, an I didnt want to play again after spending some time with it.  

     

    Honestly, the Maine areas were the crown jewel of the game, thats where I felt the heart of the game was, if only they could have replicated that mystery and atmosphere in the other areas.

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  • DakeruDakeru Member EpicPosts: 3,744
    Originally posted by demadil
    Originally posted by Hanguri

    It's sad because their games actually rock.

    Just the fact that it takes one kickass of computer to run pretty much ANY of their games that is holding them back.

     Huh? Where do you live,Stillhavea486ville?

    How original to bash him for pointing out the obvious.

    TSW simply has a horrible optimization.

    Harbinger of Fools
  • WarlyxWarlyx Member RarePosts: 2,955
    Originally posted by Dakeru
    Originally posted by demadil
    Originally posted by Hanguri

    It's sad because their games actually rock.

    Just the fact that it takes one kickass of computer to run pretty much ANY of their games that is holding them back.

     Huh? Where do you live,Stillhavea486ville?

    How original to bash him for pointing out the obvious.

    TSW simply has a horrible optimization.

     good game crippled by the combat / and horrible animations (if any -_-)

  • Po_ggPo_gg Member EpicPosts: 4,917
    Originally posted by greenreen

    Not every game is going to be for everyone but if Secret World was at least trying something a little different... what went wrong for them? 

    That, the difference I guess. Love TSW and play it a lot, but I said even before launch that it will be a fairly niche title. People don't like adventure, don't like brain work... Then there are those who simply won't care the modern setting like you. Not even mention the group who brings up the combat all the time - no mention since I got my first and only warning here when I mentioned them with a bit too harsh tone (at least according to the mod)  image

    So it has a fairly small playerbase, but probably the most dedicated and trusting one. Not the best one, that'd go to LotRO imo (TSW has a larger chunk of elitists image), but a close second. Great people.

     

    Originally posted by greenreen

    I never tried the game but I've heard stories that it doesn't have a very aggressive cash shop and people do get away with playing for free (Secret World) - if someone has the low down on that - do tell. Is that their issue - they aren't sticking it hard enough to people?

    It could be among their problems, yes. In TSW, those who are GMs (lifetime sub) are nearly drowning into their point balances... The shop has Issues (DLCs), only a handful of them and totally optional. It has some boosts - like in any other game it's mostly pointless if you're at "endgame", and in TSW even alts are just for cosmetics. Beyond those two, it only has cosmetic stuff: clothes, pets, titles, etc.

    AoC is similar, you can play the whole game without the Store, and at the endgame it's better / cheaper to simply subscribe (since the gold cap and the Khitai access are sub only). The only useful purchases in the store are the expansions, and maybe the inventory upgrade, but those are optional too.

    I think the "doesn't have a very aggressive cash shop" is correct. AoC shows the shop window at login, after that I never used to open it. TSW doesn't have this "Store-at-login" thingy, and I open the store maybe once in every month, to claim the cosmetic item of the month... Yep, the store is just as aggressive as a 1month old puppy :)

     

    edit: or, if you want a more detailed opinion on the store, Shannon wrote a great column http://www.mmorpg.com/gamelist.cfm/game/404/feature/8964/The-Trouble-with-Item-Stores.html  she too had 7000 unspent points by that time...

  • MalaboogaMalabooga Member UncommonPosts: 2,977
    Originally posted by orbitxo

    "The Live Games,Anarchy Online, Age of Conan,and The Secret World

    have delivered stronger than anticipated revenues in December 2014, contributing to

    revenue of USD 2,098 thousand in 4Q14 compared to USD 2,214 thousand

    in 3Q14." -FC report

     

    -after looking further into their report- THIS IS what really mattered imo!- they have done an amazing job getting new and maintaining TSW player base!

     
     

    If you look at any graph ever posted on games playerbase/income settles after certain period of time. Its not the point if it will settle, its the point of where exactly will it settle and in point of Funcom AND WS it settled waaaaaaaaaaaaay too low.

  • fivorothfivoroth Member UncommonPosts: 3,916
    With these results, how the hell is this company still keeping afloat. Sadly it's not looking good for funcom. I mean look at their earningns before I tricked the dumb auditors (ebitda). It's just sad.

    Mission in life: Vanquish all MMORPG.com trolls - especially TESO, WOW and GW2 trolls.

  • reeereeereeereee Member UncommonPosts: 1,636
    Originally posted by Dreamo84
    Well, when Free Realms closed, Smedley pointed out that it's very hard to monetize a children's game and I believe it.

    all parents don't give up their credit cards as easy as some people think.

    Now that I think about it trying to use the traditional F2P model that relies on whales probably doesn't work for children's games.  The amount of parents willing to spend thousands of dollars on their own hobbies is far larger than the amount of parents willing to spend thousands of dollars on their children's hobbies.

  • RusqueRusque Member RarePosts: 2,784
    Funcom drives me nuts. They have some pretty great ideas, but their consistently poor level of execution is just insane. Anarchy Online, Age of Conan, Secret World all should be great games, but they're all marred by lack of polish. I can't imagine it's laziness because it happens every time with Funcom, I don't get it.
  • SoraksisSoraksis Member UncommonPosts: 294
    If Funcom had implemented the new graphics engine for AO like they said they were going to do all those years ago I would still be playing it.  That was hands down the best game they have ever done, and it could still be great with a new engine to bring it up to today's tech standards.
  • MrMelGibsonMrMelGibson Member EpicPosts: 3,022
    Originally posted by greenreen

    I don't mean to kick a group when they are down but I can't help but put this information into my mental pocket to support future debates where people claim that going free to play "saves games".

    It may open up the doors but it doesn't promise that the people entering will pay off - not punny, I know.

    I never tried the game but I've heard stories that it doesn't have a very aggressive cash shop and people do get away with playing for free (Secret World) - if someone has the low down on that - do tell. Is that their issue - they aren't sticking it hard enough to people?

    What didn't interest me about the game was that it had a modern day setting so it got knocked off my radar early on. I just don't think those games age well. In my single lifetime I saw the use of 8-tracks and records to cassettes then the CD and mp3. It all changes too fast to keep a game modern. Being stuck somewhere in the past or in a different timeline can age better.

    And Age of Conan, well the only marketing I saw about that was - we've got pixel boobs and you can kick people with your horse! Seemed like a boy's club so it got tossed into the not for me pile too. I remember people complaining about having to grind out final levels because the content wasn't finished or something too. Not every game is going to be for everyone but if Secret World was at least trying something a little different... what went wrong for them? 

     

     

    TSW never went F2P.  It went B2P.  Its actually a big difference.

  • MrMelGibsonMrMelGibson Member EpicPosts: 3,022
    Originally posted by elocke
    TSW needs that next patch ASAP.  The one that changes combat for those of us who hate it currently.  I plan to play it once it hits.  Any day now, Funcom, any day. ;D

    What exactly are they changing?  The combat was really the only off putting thing in TSW.  If they somehow upgraded it or maybe make the combat more like Tera (pipe dream I know).  I would try it out again.

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