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Age of Conan

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Age of Conan » General Discussion » Funcom announced "nervous" Q1 financial report

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Erxi  5/13/08 5:59:01 PM

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Funcom is one of very few independent companies with solid MMO experience around. What I think will happen is that one day a large entertainment company decides that oh, we need to be in the MMO market - and how to do that? Buy a company already there. I own a few stocks in FC and would like to be able to sit on them to that day, but it seems that I have to sell fairly soon.

WoW's ability to print money for its owners makes it highly unlikely that FC will face problems getting financing for future projects regardless of whether AOC gets 100k or 1m subsrcibers. They can borrow money from a bank or issue new stocks if the cash flow from AOC is insuficcient for developing new games.

 

Here is a chart showing FC's stock price this year:

http://www.oslobors.no/ob/aksje_kursutvikling?p_instrid=ticker.ose.FUNCOM&menu2show=1.1.2.1.&p_period=YTD

 
Zorndorf  5/13/08 6:11:27 PM

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Originally posted by Erxi

Funcom is one of very few independent companies with solid MMO experience around. What I think will happen is that one day a large entertainment company decides that oh, we need to be in the MMO market - and how to do that? Buy a company already there. I own a few stocks in FC and would like to be able to sit on them to that day, but it seems that I have to sell fairly soon.

WoW's ability to print money for its owners makes it highly unlikely that FC will face problems getting financing for future projects regardless of whether AOC gets 100k or 1m subsrcibers. They can borrow money from a bank or issue new stocks if the cash flow from AOC is insuficcient for developing new games.

 

Here is a chart showing FC's stock price this year:

http://www.oslobors.no/ob/aksje_kursutvikling?p_instrid=ticker.ose.FUNCOM&menu2show=1.1.2.1.&p_period=YTD

I don't think it is that simple.

 

In the last 3 years only LOTRO launched and got a decent user base of "1%" (sic) marketshare.

Lord British  of Tabula Rasa (and UO fame) declared that  his TR game just broke even (it passed its first 4 months on 0.8% marketshare).

It means that if you don't get past the 200 K subs you just hang in there...

IF Conan would flop with say 100/150K subscribers after 3 months and IF Warhammer would not fill in the expectations, I don't think the large investments in MMO's will still be made.

Development of MMORPG are so huge compared to shorter lived console games.

It is FAR more lucrative to have the console market BTW. Smaller scaled games, faster money and NO copy. So I would think that stocks in MMO products could fall very hard these days.

 
gamedever  5/13/08 6:15:58 PM

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Reading magazines, web articles and financial documents regarding MMO projects, I have to concur. if these top anticipated games don't cut it, then there is little reason to dump such vast funds into this genre.

 

Out of all game projects, i tis clearly the most risky, and yet, if it pulls off, the most profitable.

Mark Sumerix
Game Designer
Tantus Games

spector75  5/13/08 6:30:23 PM

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So according to that report in the time it has taken to make the game the company went from 112 mill, to 93 mill, with 60 mill being promised to them in marketing from EIDOS... how in any way does that sound like they could go bankrupt  off this project?

 

 

 
sandgrown  5/13/08 6:52:27 PM

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the biggest problem age of conan has are the high system specs that will be proberbly needed to run it . the beta client has nt allayed peoples fears in fact given a lot of them paid a fileplanet sub to try it and subsquently finding it did nt run well on a mid range system theres quite a lot of disapointment in the game already .

if the actual release client is signifcantly different funcom would be wise to offer a free trial ( even if its a 3 day one ) simply to allow people to see for themselves how well it runs on thier system .

i want this game to be a success but i do think its going to be a financial disaster for funcom . i hope i m wrong the last thing the mmo community needs is another failed high profile game .

 
HumbleHobo  5/13/08 7:02:27 PM

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Whatever the outcome, Funcom will definitely be either a good example, or a warning to future MMOs. Only time will tell.
 
SpiralGalaxy  5/13/08 7:23:43 PM

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Proof that AoC is not selling much will be demonstrated here (WARNING: HEAVY SARCASM):

http://www.amazon.co.uk/gp/bestsellers/videogames/ref=pd_dp_ts_vg_h__1

- 4th on all computer games. 1st is Wii fit, 2nd and 3rd place taken by GTA 4 for the XBox and PS3.

http://www.amazon.com/gp/bestsellers/videogames/ref=pd_dp_ts_vg_1

-5th on all computer games. Mariokart Wii with the Wii Wheel, the Wii Wheel on its own and GTA 4 on both platforms.

Hmm, so let's see. What can we deduce from this regarding the regular copy of the game (inc preorder?)

Could it be that is the best-selling PC game on both sites? Surely not, since hints are that 'only a few have pre-ordered the game' according to you. The fried computer was a nice touch.

And the Collector's Edition? Sold out on GAME and PLAY.COM, and unpurchaseable from Amazon.co.uk. I pre-ordered mine from GAME.co.uk and called them up to see if I'd still be reasonably sure of getting one (got my pre-order code the other day). The lady I spoke to on the phone told me that people were calling her from all over including Norway where the game is MADE because they couldn't find a copy over there.

Since Amazon includes rankings, I'd say that being a notch below GTA 4 in terms of sales across all platforms is hardly an indication that 'only a few have pre-ordered the game.'

End of discussion.

 
miagisan  5/13/08 9:22:58 PM

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Originally posted by SpiralGalaxy

 

 

Proof that AoC is not selling much will be demonstrated here (WARNING: HEAVY SARCASM):

http://www.amazon.co.uk/gp/bestsellers/videogames/ref=pd_dp_ts_vg_h__1

- 4th on all computer games. 1st is Wii fit, 2nd and 3rd place taken by GTA 4 for the XBox and PS3.

http://www.amazon.com/gp/bestsellers/videogames/ref=pd_dp_ts_vg_1

-5th on all computer games. Mariokart Wii with the Wii Wheel, the Wii Wheel on its own and GTA 4 on both platforms.

Hmm, so let's see. What can we deduce from this regarding the regular copy of the game (inc preorder?)

Could it be that is the best-selling PC game on both sites? Surely not, since hints are that 'only a few have pre-ordered the game' according to you. The fried computer was a nice touch.

And the Collector's Edition? Sold out on GAME and PLAY.COM, and unpurchaseable from Amazon.co.uk. I pre-ordered mine from GAME.co.uk and called them up to see if I'd still be reasonably sure of getting one (got my pre-order code the other day). The lady I spoke to on the phone told me that people were calling her from all over including Norway where the game is MADE because they couldn't find a copy over there.

Since Amazon includes rankings, I'd say that being a notch below GTA 4 in terms of sales across all platforms is hardly an indication that 'only a few have pre-ordered the game.'

End of discussion.

not trying to flame...more of just a curiousity on my part...are those based off total sales or percentage sales? cause they would both read differently. If it's total sales...then good job funcom! but if it's percentage, it really doesnt tell alot because if overall sales were low, then even small sales would equate to a higher percentage


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red_cruiser  5/13/08 9:31:25 PM

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I like Funcom.

It's hard to find another game development job in Oslo, Norway so you can always count on them to try hard since relocating is a #*&%!@#.

Age of Conan is far from perfect, but overall it's pretty good.  They still have a lot of work left on the game though.  I'm really disappointed with how... simple and non-interactive the combat ended up being... but once you start developing the character it does become more fun than traditional MMORPG combat.  Just not as much more as I was expecting.

The biggest problem with AoC is that it doesn't "hook" people that well.  I didn't really enjoy the actual gameplay that much til I got level 22+ abouts.  Tortage was overall pretty meh.

Having only one option on the first tier of each of the feat trees makes it about level 15-17 before you actually feel like you are "personalizing" your character. I think having at least two choices on the first tier would help players get "hooked" into the game alittle faster.

Where Funcom could get hit the hardest is in retaining subscriptions.  WoW plays so smoothly and the PvE is so refined that alot of people may not be able to get past their prior conceptions as to what a MMORPG should play like.  For alot of people who don't have computers that run AoC well, WoW might be good enough til when WAR comes out

I waffled alot as to whether or not AoC was good enought devote time to.  I figured I'd give the game a shot to see how the RP-PvP servers community turned out.  If the community bites, I don't see the game being worth it for the long haul.  If the community is diverse and interesting, it could become something special.

 
ProfRed  5/13/08 9:34:50 PM

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Originally posted by miagisan
Originally posted by SpiralGalaxy

 

 

Proof that AoC is not selling much will be demonstrated here (WARNING: HEAVY SARCASM):

http://www.amazon.co.uk/gp/bestsellers/videogames/ref=pd_dp_ts_vg_h__1

- 4th on all computer games. 1st is Wii fit, 2nd and 3rd place taken by GTA 4 for the XBox and PS3.

http://www.amazon.com/gp/bestsellers/videogames/ref=pd_dp_ts_vg_1

-5th on all computer games. Mariokart Wii with the Wii Wheel, the Wii Wheel on its own and GTA 4 on both platforms.

Hmm, so let's see. What can we deduce from this regarding the regular copy of the game (inc preorder?)

Could it be that is the best-selling PC game on both sites? Surely not, since hints are that 'only a few have pre-ordered the game' according to you. The fried computer was a nice touch.

And the Collector's Edition? Sold out on GAME and PLAY.COM, and unpurchaseable from Amazon.co.uk. I pre-ordered mine from GAME.co.uk and called them up to see if I'd still be reasonably sure of getting one (got my pre-order code the other day). The lady I spoke to on the phone told me that people were calling her from all over including Norway where the game is MADE because they couldn't find a copy over there.

Since Amazon includes rankings, I'd say that being a notch below GTA 4 in terms of sales across all platforms is hardly an indication that 'only a few have pre-ordered the game.'

End of discussion.

not trying to flame...more of just a curiousity on my part...are those based off total sales or percentage sales? cause they would both read differently. If it's total sales...then good job funcom! but if it's percentage, it really doesnt tell alot because if overall sales were low, then even small sales would equate to a higher percentage

Haha I think that his point is that the game is getting pre-ordered, is selling, and is very much anticipated in response to all the doom trolls saying that the game isn't selling, and cobwebs are growing on the shelves around the pre-order boxes. (When there were no actual pre order boxes for all of this time because it was only available on line.)

 
miagisan  5/13/08 9:37:00 PM

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well not to pass jusgement..but POTBS was also number one when i preordered it, for a couple of weeks, and they already merged the servers. So i take those with a huge grain of salt, and yes i am a jaded preorderer of many overhyped games


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ProfRed  5/13/08 9:49:25 PM

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Yeah I don't go off these numbers at all, or anything surrounding pre orders or hype.  I don't go by trolls or fanboys, or any pre release media.  I just make decisions based on listening to designers/devs and trying it myself. 

However, his post was in response to the tons of people in this thread talking bad about the numbers so he countered them with facts, links, and information better than, 'I talked to X and he said Y.'  He was posting in response to doom chickens.

 
miagisan  5/13/08 9:51:10 PM

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