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The Pub at MMORPG.COM  » Funcom Q4 2012 casually announces...

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25 posts found
  gamesrfun

Apprentice Member

Joined: 1/22/09
Posts: 130

 
OP  3/01/13 6:30:19 PM#1

As if it wasn't a big deal, Funcom casually announced in their financial report that they had fired half their staff in Q4/2012 and that in Q1/2013 they anticipated axing another 25% of their staff.

And remember this is Funcom, so they don't mean 50%, and then 25% of the remainder.  They would have been clear if that was the case.

No, it means that Funcom in 6 months will have shed 75% of its employees. 

After all, the company is barely able to keep 7 million dollars a quarter flowing through the company coffers, despite having 2 AAA MMOs.

Other fun notes:

1)  The hub of Funcom in Norway has been gutted to less than 40 people.

2) If you were an Asian based Funcom employee, you lost your job.

3) If you were an employee in the U.S., you most likely lost your job.

4) Montreal was saved from the most damage.

5)  Funcom has significantly more debt now than its cash position. 

6)  Funcom is basically signing a deal with the devil to borrow a mere 10 million dollars more.  Recognize that the company is losing about 5 million US per quarter (although admittedly a good chunk of that is depreciation as they had to once again chop off another 3 million in value of The Secret World)

 

  Yizle

Novice Member

Joined: 4/24/10
Posts: 530

3/01/13 6:35:40 PM#2
Thought I read they just opened up an office on the east coast of the US and were moving more employees there for further development of MMOs. This was in the last couple of months I thought.
  gamesrfun

Apprentice Member

Joined: 1/22/09
Posts: 130

 
OP  3/01/13 6:40:42 PM#3
Originally posted by Yizle
Thought I read they just opened up an office on the east coast of the US and were moving more employees there for further development of MMOs. This was in the last couple of months I thought.

They moved some Montreal people to North Carolina.  But it was not a new office.

In other words, Montreal people kept their jobs, although some are now in the U.S..

Last time they released employment numbers they were near 360...so that brings them down to 90 minus customer service: 40 in Norway and 50 between Montreal and North Carolina.

 

  Nikopol

Novice Member

Joined: 11/21/08
Posts: 627

Brought to you by... The Spirit of Nikopol.

3/01/13 6:41:30 PM#4

They really underperfomed badly with TSW, considering their expectations. I like the game, but financially it never took off, and I'm guessing Funcom was depending on it.

Sad to see them struggle so badly. They've made some of my favorite games, and they always bring something at least a bit different to the table, but they've never exactly managed to make it big. I think Conan was their chance and they botched it. It probably caused a lack of interest in TSW, too.

Here's still hoping they recover.

 

  shamall

Advanced Member

Joined: 7/30/04
Posts: 509

played: almost every mmo out there

3/01/13 6:46:18 PM#5
Had the number one scifi mmo of its time and blew it. 

The Brave Do Not Fear The Grave

  Yizle

Novice Member

Joined: 4/24/10
Posts: 530

3/01/13 6:46:56 PM#6

I think it started with Anarchy Online. Horrid release... like all of their games but once you got passed that was a really good game. But even a couple years later it still had some same bugs and problems.

 

Mem leak anyone?

  StonesDK

Novice Member

Joined: 8/06/11
Posts: 1845

3/01/13 6:48:38 PM#7
If Funcom could be compared to a single developer it would be Brad MQuaid. They have the vision, just not the ability
  FromHell

Novice Member

Joined: 11/10/12
Posts: 1338

3/01/13 6:48:56 PM#8
Well, that's bad because they have the best MMOs ever made. Too bad the majority of gamers prefers cartoony hand holding T rated MMOs with elves and little cuddly fantasy races wearing pink tutus.

Secrets of Dragon´s Spine Trailer.. ! :D
http://www.youtube.com/watch?v=fwT9cFVQCMw

Best MMOs ever played: Ultima, EvE, SW Galaxies, Age of Conan, The Secret World
http://www.youtube.com/watch?v=T2X_SbZCHpc&t=21s
.


.
The Return of ELITE !

  Gaoxin

Novice Member

Joined: 9/20/10
Posts: 196

3/01/13 6:49:44 PM#9

Anarchy Online was my first mmorpg and I played it for 3 years.

 

Goodbye Anarchy Online remake and AO2. :[

  Yizle

Novice Member

Joined: 4/24/10
Posts: 530

3/01/13 6:54:59 PM#10
Originally posted by Gaoxin

Anarchy Online was my first mmorpg and I played it for 3 years.

 

Goodbye Anarchy Online remake and AO2. :[

Never heard of any news of a an AO2 in the works. I think AO just needs to bring a much more experienced release team to finish and polish their products because it just seems they lack that in their designs. AO was a fun game and enjoyed it. AoC... Tortage was good after that blah. And again another game with a memleak at release. TSW enjoyed beta but did not have that much interest in it. Bought it when it went B2P for $15. At that price was a good game for a bit.

 

They do have good concepts and ideas. Decent design but always with some major flaws that it takes them way too long after release to fix.

Besides EA I don't want any company to fail or disappear.

  Rthuth434

Novice Member

Joined: 12/26/12
Posts: 367

3/01/13 6:56:17 PM#11

Operating profit (EBIT), negatively impacted by 5,145 TUSD impairment charges was -5,947 TUSD for 4Q12 compared to -5,189 TUSD for 4Q11. Result for the period was -6,433 TUSD compared to -6,096 TUSD for 4Q11.

  SpottyGekko

Elite Member

Joined: 9/26/04
Posts: 3175

3/01/13 6:58:53 PM#12
Originally posted by Gaoxin

Anarchy Online was my first mmorpg and I played it for 3 years.

 

Goodbye Anarchy Online remake and AO2. :[

Perhaps not....

 

Some F2P group with loads of cash (like Perfect World) will probably buyout Funcom and turn AO, AoC and TSW into cash shop centric money spinners. 

 

Oh the Horror, the Horror...

  augustgrace

Advanced Member

Joined: 1/29/06
Posts: 632

3/01/13 6:59:04 PM#13

Not sure where you're getting some of your information.  I've read the report and the presentation, and it is probably the most positive Funcom position I've seen in a long time.

3 main hubs. Montreal is now dedicated to mobile games, developers of non-mobile games shifted to NC office.  Oslo office will be dedicated to mid-core games but currently its entire 40 person staff is fully dedicated to getting Lego minfigures out early 2014.

Profits Q4'13 3500tusd more than Q4'12

Positive cash flow

Paid down debts; roughly 7,000tusd

Working with KGJ to restructure existing loans

Conan movie staring Arnold confirmed; aimed for 2014

The Longest Journey/Dreamfall lincensed out

Montreal office already secured two new deals with Lego

 

 

By no means is Funcom a huge success, nor have they ever been, but things do seem to be looking up for them.  

edit:  seeing people calculating impairments in revenues.  While that has to be presented in the financial reports, an impairment isn't an actual expense that occurred during the period.  Rather it is an adjustment to the value of an asset.

 

  FromHell

Novice Member

Joined: 11/10/12
Posts: 1338

3/01/13 7:03:31 PM#14
Originally posted by Gaoxin

Anarchy Online was my first mmorpg and I played it for 3 years.

 

Goodbye Anarchy Online remake and AO2. :[

revamp is still in the works according to the info from this week

 

http://forums.anarchy-online.com/showthread.php?t=604018

they even posted a video some days ago from the new engine port

http://youtu.be/Ej2_VvvGTRQ

Secrets of Dragon´s Spine Trailer.. ! :D
http://www.youtube.com/watch?v=fwT9cFVQCMw

Best MMOs ever played: Ultima, EvE, SW Galaxies, Age of Conan, The Secret World
http://www.youtube.com/watch?v=T2X_SbZCHpc&t=21s
.


.
The Return of ELITE !

  Insane666

Novice Member

Joined: 3/26/08
Posts: 66

3/01/13 7:10:28 PM#15
Originally posted by FromHell
Well, that's bad because they have the best MMOs ever made. Too bad the majority of gamers prefers cartoony hand holding T rated MMOs with elves and little cuddly fantasy races wearing pink tutus.

AO has atroxes in pink tutus, but yeah, i totally agree wth you on your point, one of the few studios not afraid to do things differently, add something from themselves, instead just copy paste the standard themepark model into a new IP

 

alltho their best mmo is their oldest one - Anarchy Online, while both AoC and TSW are different from most of other modern MMOs it was AO wich was totally unique

 

 

Originally posted by shamall
Had the number one scifi mmo of its time and blew it. 

sadly, alltho deep inside im still hoping the new engine wont turn out vaporware, that FC wont just die, at least not before ressurecting Anarchy Online pushing enuff life into it to last another decade,,,

Games previously played: AO, AoC, Aion, AoW, Eve, SWTor, WaR, STO, TSW, DCUO, FE, BP, ProjectEntropia, FootballSuperstars!

  Gaoxin

Novice Member

Joined: 9/20/10
Posts: 196

3/01/13 7:27:46 PM#16
AO2 is only a dream of mine...waiting for it for about 7 years now, but they keep releasing elfs. Not a single company managed to release a great scifi mmorpg, except maybe EVE but I couldnt enjoy for more than 3 months. :|
  Raventree

Novice Member

Joined: 5/12/10
Posts: 457

It is a double pleasure to gank the ganker.
-Raven Treeavelli

3/01/13 7:29:33 PM#17
Ouch!  That is too bad, I like Funcom.  I don't currently play AoC or TSW, but I still think they put out a good game.  I hope they are able to pull it together and make some money in the future.

Currently playing:
Rift
Played:
SWToR, Aion,EQ, Dark Age of Camelot
World of Warcraft, AoC

  Ex0dUs101

Apprentice Member

Joined: 12/17/06
Posts: 273

3/01/13 7:32:45 PM#18

Funcom have been very open about what they are doing, and the restructuring taking place, and its a very positive step for them, certainly not doom and gloom, just smart business and long overdue.

It makes me much happier to see them taking action to improve things.

  FromHell

Novice Member

Joined: 11/10/12
Posts: 1338

3/01/13 7:34:50 PM#19
Originally posted by Insane666
Originally posted by FromHell
Well, that's bad because they have the best MMOs ever made. Too bad the majority of gamers prefers cartoony hand holding T rated MMOs with elves and little cuddly fantasy races wearing pink tutus.

AO has atroxes in pink tutus, but yeah, i totally agree wth you on your point, one of the few studios not afraid to do things differently, add something from themselves, instead just copy paste the standard themepark model into a new IP

 

alltho their best mmo is their oldest one - Anarchy Online, while both AoC and TSW are different from most of other modern MMOs it was AO wich was totally unique

 

 

Originally posted by shamall
Had the number one scifi mmo of its time and blew it. 

sadly, alltho deep inside im still hoping the new engine wont turn out vaporware, that FC wont just die, at least not before ressurecting Anarchy Online pushing enuff life into it to last another decade,,,

I think this is FCs most important year to either go down or rise like a Phoenix..

AO engine revamp, making the game future proof

AoC crafting revamp and single server tech, PvP changes and additions

TSW continuing with solid content, animation system revamp, PvP additions

 

if they get all this done in 2013 -> epic win

Secrets of Dragon´s Spine Trailer.. ! :D
http://www.youtube.com/watch?v=fwT9cFVQCMw

Best MMOs ever played: Ultima, EvE, SW Galaxies, Age of Conan, The Secret World
http://www.youtube.com/watch?v=T2X_SbZCHpc&t=21s
.


.
The Return of ELITE !

  Ramonski7

Spotlight Poster

Joined: 5/21/03
Posts: 2702

"A wise man has something to say, but a fool just has to say something."

3/01/13 8:26:58 PM#20
Originally posted by augustgrace

Not sure where you're getting some of your information.  I've read the report and the presentation, and it is probably the most positive Funcom position I've seen in a long time.

3 main hubs. Montreal is now dedicated to mobile games, developers of non-mobile games shifted to NC office.  Oslo office will be dedicated to mid-core games but currently its entire 40 person staff is fully dedicated to getting Lego minfigures out early 2014.

Profits Q4'13 3500tusd more than Q4'12

Positive cash flow

Paid down debts; roughly 7,000tusd

Working with KGJ to restructure existing loans

Conan movie staring Arnold confirmed; aimed for 2014

The Longest Journey/Dreamfall lincensed out

Montreal office already secured two new deals with Lego

 

 

By no means is Funcom a huge success, nor have they ever been, but things do seem to be looking up for them.  

edit:  seeing people calculating impairments in revenues.  While that has to be presented in the financial reports, an impairment isn't an actual expense that occurred during the period.  Rather it is an adjustment to the value of an asset.

 

Thank you augustgrace. I too read the Q4 report and didn't get the doom and gloom feeling resonating within this thread. If anyone was hoping for Blizzard, NCSoft or Nexon like numbers from a Norwegian based game devloper, think again. Funcom is a prime example of a small game developer who caught a break with a well known IP and tried to capitalize on that in order to position themselves for all their future endeavors. Unfortunately things didn't pan out in their favor. The words "spreading yourself too thin" have never rang truer.

 

So to me it seems they have learned their lesson and have taken their lumps. And are now poised to restructure and consolidate to three offices (down from 5) with 3 independently focused business areas:

  • North Carolina focus will be devloping and operating their existing large scale mmos
  • Montreal will focus on high-quality mobile and tablet based games and technologies
  • Oslo will focus on LEGO Online and high-quality MMOs in the mid-core segment
I don't know about you but that's far from painting a picture of a developer on the brink of shutting it's doors or selling off their IPs. More like trimming the fat and being content with what they have and more importantly what they are capable of doing.
 

 


"Small minds talk about people, average minds talk about events, great minds talk about ideas."

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