Funcom reports 69% drop in revenues
The Norway-based Game and MMO developer, Funcom, released its latest financial results for its third quarter. The financial results are grim and indicate that revenues were down year-over-year by 69%!
During this same quarter, Funcom posted a loss of 9.6 million US Dollars, compared to the 3.3 million US Dollar profit they made last year. According to the financial statement the company still has approximately 34.8 million US Dollars in cash reserves and steps taken thus far have reduced monthly costs by around 400,000 US Dollars per month. They did open a new facility in Montreal back in September so who knows what havoc that will play on expenses as the months go by.
Funcom’s current major title, Age of Conan: Hyborian Adventures, is scheduled to launch next year in Korea. That along with the upcoming new expansion may breathe some much needed life into their ailing MMO empire. They have great aspirations for their “in the works” new MMO, The Secret World. Time will tell if the new title can gain them market share and enough profitability to stay afloat in this competitive MMO market.
Q4 revenue is not expected to be any better than Q3, rough seas ahead folks.
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