Tag: 2013

Funcom's 2013 Income Drops


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Funcom has released their Q4 2013 finances and the results are a mixed bag, mostly leaning towards the negative. Revenues in the fourth quarter dipped below last quarter, $4.2 million compared to $5.3 million and far below the same period last year. Losses in revenue pointed toward weak sales due to increased competition in 2013. Funcom has continued to invest in LEGO Minifigures Online as well as the Dreamworld platform so that the former is compatible across multiple systems, including mobile devices.

The new strategy for 2014 is to increase communication with press and analysts on where the developer is headed in the future. As announced in 2012, the new strategy is to build mid-core focused games with smaller budgets and shorter development times using smaller teams. Also among the list of goals is to build games around known brands, hence the Lego Minifigures title. With the introduction of the Dreamworld technology, Funcom’s future games will be compatible with iOS and Android platforms.

Funcom’s large scale MMOs saw a decrease in activity level due to increased competition in the last quarter, which the developer has responded to with increased marketing campaigns that have resulted in higher activity and revenue in the early first quarter. Numbers and revenue in Age of Conan and Anarchy Online remained mostly stable, and all games are currently considered cash flow positive. The Lego Minifigures game is on track for an open beta this summer, with a tablet version available sometime this year. Lego Minifigures will be free to play with microtransactions, membership benefits, or some mixture of both.

As many of our readers know, Funcom is currently being investigated by Økokrim, Norway’s economic crimes unit, on suspicion of insider trading and negligence in information given to the market leading up to the launch of The Secret World. So far no employees have been charged and Funcom has not been informed as to how long the process will take.

(Source: Funcom Earnings Release)

Star Vault Posts Lower Fourth Quarter


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Star Vault has posted their fourth quarter results for 2013, and the results are not looking so great. Net sales during the fourth quarter amounted to over eighty five thousand, a very small loss from the previous quarter. Net profit, on the other hand, dropped further into the red to one hundred fifty three thousand.

Despite this loss, Star Vault reported an increase in monthly payments during the fourth quarter compared to the third with CEO Henrik Nystrom claiming a positive increase in player activity over the year. In September, Mortal Online was approved for release on Steam through the Greenlight program, which will open the game to a wider audience.

Henrik Nystrom commented on the upcoming Steam launch:

Thanks to hard work and a faithful, active player community became Mortal Online, in competition with 15,000 other games around the world, approved to be listed on STEAM. STEAM is the world’s largest online distributor of PC games and we were voted by over 70,000 players. Mortal Online will then be posted on a global playlist daily visited by between 4-6 million players worldwide.

Through private placements and player donations, we have added the capital required for achieving progress and deliver new features, but especially to hone in on the launch so that it is just as good as global players require today. We are also working to expand the so-called “physical game faces” in Mortal Online, which means that we can handle more players.

We have seen a cautious positive trend of increased player activity during the year and now look forward to the upcoming launch of exciting opportunities.

The upcoming Annual General Meeting will decide on a replacement for the position of deputy director following the passing of Ulfric Nystrom.

(Source: AktieTorget)

Neverwinter Reflects On 2013


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The end of the year is upon us, and what better time to look back at events that have transpired? Over at Perfect World Entertainment, Lead Producer Andy Velasquez took some time to talk about Neverwinter’s first year, or half year to be more specific. The note thanks players for providing extensive feedback regarding Shadowmantle, and notes the team charged with creating the game’s multiple events.

Shadowmantle has been our largest update thus far, and I am extremely proud of my team for being able to get it done so quickly while maintaining a high quality product. As always, there are things that we learned from this expansion that we will look to improve upon in our development process.

Velasquez also notes the release of a separate Russian shard, and how there are (naturally) more updates on the way. Neverwinter was, of course, not without mishaps its first year, including astral diamond dupes, auction house exploits, and the release of the banhammer on foundry exploits.

(Source: Neverwinter)

Lessons From 2013 #8: Giving Purpose To Planetside


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As fun as it was, Planetside 2 launched without a whole lot of direction. The lack of a lattice system similar to the original Planetside meant that planetary combat was chaotic, with many players simply base jumping by seeking out areas most likely to be empty and therefore captured without resistance. With update 9, Sony Online Entertainment introduced a lattice system, requiring the forward bases be captured in order for more territory to be captured.

The lesson here is that if you’re going to make a sequel, pay attention to what made the original work and have it in at launch rather than months later.

Extra lesson: I need a new Planetside 2 stock photo. This one predates launch.

The Big Perfect World Finance Chart


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Perfect World Entertainment becomes the latest company to enter MMO Fallout’s portfolio of charts and graphs. As you can see from the chart above, the Chinese developer/publisher has come a long way just since the earliest financial statements available on their website (Q3 2007). This quarter, Perfect World made out with $136.2 million in total revenue and $104.4 million in gross profit. Robert Xiao, CEO of Perfect World, was happy to report that the company’s bottom line has been boosted by 50%, thanks to strong reception of numerous expansion packs and content updates, as well as the release of several new Chinese games.

In the pipeline, Perfect World is gearing up for releasing DOTA2 in China, as well as the Chinese localization for Neverwinter. Perfect World will also acquire 100% equity in two of China’s leading gaming portals, Wuhu Huitian and Daqu. Revenues for Q4 2013 are expected to increase by 2-7% over this quarter.

(Source: Perfect World)