Funcom have released their 2014 financial report and things are not exactly looking good for them.
The Financial Summary shows us that between the financial year of 2013 and 2014, Funcom’s earnings were down by almost half of what they were, although it’s not all doom and gloom as between the third quarter of 2014 and the fourth quarter, there is a visible rise in profits, though not as high as it could be. They claim in the report that the loss is due to “aging of the Live Games,” which is a fair point when you consider that Anarchy Online released in July 2001, Age of Conan in May 2008, and The Secret World in July 2012 and it’s only natural for games to decline in popularity and lucrativeness over time, but is it good enough to expect aging games to bring in the profits needed to continue running a game company?
Within their live games, Funcom explain what they are actively doing in order to increase profits to keep afloat, such as certain cash shop ventures like The Secret World’s various seasonal events and First Time Buyer’s Packs, and Age of Conan’s instant level 80 character boost and new raids. Of course, Funcom are also developing LEGO Minifigures Online, which is currently in Closed iOS Beta, though the team would like to extend this to more players and launch the game onto new platforms, including iPad, in 2015’s first and second quarters, although monetization is taking longer than anticipated to implement.
The final word from the financial report is that Funcom claims their finances are at a capacity to enable funding for the following 12 months and with profits on the rise at the end of 2014, it would be brilliant to see this go even further looking into 2015. On top of this, at the end of 2014’s third financial quarter, the company went through a restructuring process and hopes that the benefits of the savings from this will materialize this year. So while things aren’t looking brilliant for Funcom when we take a look at the picture as a whole, it’s great to see even a little hope going forward.
Source: Financial ReportRelated: Financials, Funcom, Industry, News