Funcom's financials take a sharp blow
The earnings report for Funcom's fourth quarter 2013 is in -- and it doesn't look pretty.
The studio reported that revenues are down both year over year and quarter over quarter due to deferred billings with The Secret World and increased competition. However, Funcom said that a better business model and new marketing programs are resulting in a stronger first quarter for 2014 and that its MMOs are "cash-flow positive and will remain so in the foreseeable future."
Funcom said that it is taking steps to turn around the business with a new strategy to focus on more mid-core online games with smaller budgets and shorter development time. It's also continuing to invest in LEGO Minifigures Online and the Dreamworld technology. The latter is important so that the studio can release games across multiple platforms including Android and iOS tablets. LEGO Minifigures Online is scheduled for open beta testing this summer.
The Økokrim charges regarding possible market manipulation between August 2011 and August 2012 were mentioned. Funcom said that no employees have been charged, and the company is cooperating fully with the ongoing investigation.
