Funcom Q2 report - revenues decrease

[Mellaus]

It's exactly the park from TSW :

https://www.youtube.com/watch?v=U1laEiebQ_E

Just copy paste apparently. Or very close.

[Roragar]

Its a pretty damning indication when they state that the "new" park title isnt likely to generate significant revenue.
With it being a rehash of old material from TSW even more so, just what on earth is going on at Funcom, clutching at straws it seems. Only thing we can be sure of is that if using their own IP's to create newer single player releases then we can kiss anything new for AoC goodbye.
Whatever path TSW takes from now on we are only ever going to get hand me downs.

Sorry for being defeatist, I just love AoC & it still even now has a chance to be a GREAT MMO, but with little to no funding or development heading our way they have all but stated we are now on battery operated life support

[AngryBarb]

Someone pls refresh my memory. Pretty sure I've read several times that AOC is actually the profitable FC title, and it is and has been doing better than FC's own expectations for quite some time now.

Just wondering since there seems to be some people over at TSW forum who is trying to say that TSW is the one exceeding epectations and not AOC Which sounds funny to me, since I've been reading about TSW being a financial failtrain for over a year now.

[Roragar]

Someone pls refresh my memory. Pretty sure I've read several times that AOC is actually the profitable FC title, and it is and has been doing better than FC's own expectations for quite some time now.

Just wondering since there seems to be some people over at TSW forum who is trying to say that TSW is the one exceeding epectations and not AOC Which sounds funny to me, since I've been reading about TSW being a financial failtrain for over a year now.

I believe both AoC & TSW currently return a quarterly + so to speak but TSW's fail of a launch means that any money it does make is merely filling the hole of money it cost Funcom initially. Rath has an income sheet in one of the posts here that highlights a theoretical -$22mil for TSW since its release or to that effect.

[Slith]

It's exactly the park from TSW :

https://www.youtube.com/watch?v=U1laEiebQ_E

Just copy paste apparently. Or very close.

Fresh from twitter:

People keep asking, including @rockpapershot - The Park is absolutely set in the universe of The Secret World. - Joel Bylos

[zeuss]

What they need to do is first and foremost replace the whole marketing team if it exist,secondly copy and then remove pvp side from Aoc,then create exclusively pvp aoc game with arenas,minigames,working massive pvp,balanced classes etc.... Then advertise it like there is no tommorow also send email to every current and old subscriber of any funcom game.Then have a share subscription for both aoc and aoc pvp exclusive and see both games get full of players.They are sitting in a gold mine but they dont know how to take advantage of it.

Edit:Might be no so easy as it sounds but putting money where most likely they will success is what logic says instead of trying to create projects that every sane person can see its going to fail like lego seriously who even got the idea of putting money to create that game?

[Rathothis]

Someone pls refresh my memory. Pretty sure I've read several times that AOC is actually the profitable FC title, and it is and has been doing better than FC's own expectations for quite some time now.

Just wondering since there seems to be some people over at TSW forum who is trying to say that TSW is the one exceeding epectations and not AOC Which sounds funny to me, since I've been reading about TSW being a financial failtrain for over a year now.

The best indication is probably the carrying amount in FC's annual report (p. 63 et seq):
AoC: USD 334k + USD 944k (result of the impairment test, but not recorded by FC) = USD 1,278k
TSW: USD 1,974k

So AoC's value is 2/3 of TSW's. But for all we know, the great majority of the live team's cost is spent on TSW. Which means that AoC is probably more profitable (not even taking into account that it is 4 years older than TSW, and thus TSW should theoretically be much more valuable).

I believe both AoC & TSW currently return a quarterly + so to speak but TSW's fail of a launch means that any money it does make is merely filling the hole of money it cost Funcom initially. Rath has an income sheet in one of the posts here that highlights a theoretical -$22mil for TSW since its release or to that effect.

Yup, it's highly theoretical, as we have no information on the allocation of costs and revenues to the two games. So what I did is:

* On the cost side, I simply allocated all of FC's operating costs to the respective "new" major title, starting 6 quarters before launch (since that is generally when costs start to ramp up). I.e., I counted all of FC's operating costs as "AoC costs" from Q4/2006 on, and all of its operating costs as "TSW costs" from Q1/2011 on, but ending Q2/2014 (I simply assumed that all costs after Tokyo were "Lego costs").
* Similarly, on the revenue side, I simply assumed that all of FC's revenues were attributable to the "new" major title after its launch (i.e. all revenues were "AoC revenues" from Q2/2008 on, and all were "TSW revenues" from Q3/2012 on).

Obviously, this is - at best - a very rough approximation, as (i) development creates cost earlier than 18 months prior to launch, (ii) AoC still had a dev team in the six quarters prior to TSW's launch, but (iii) AoC continued to generate revenues after TSW's launch. Also, the period during which I assumed revenues were attributable to AoC (Q2/2008 to Q3/2012) is longer than the time which has expired since TSW's launch. So overall, the real picture might be somewhat more favourable towards TSW - but given its current revenue situation, probably not by much.

[Roragar]

Ive often wondered if the breakdown of Funcoms financials is also available ie: specifics of AoC/TSW revenue/costs etc.
I know that level of financial transparency is the standard for some countries & that all companies have to "declare" so to speak, but just wondered if that level of detail is available from Funcom?

Surely with them on the lookout for potential investors those details should be readily available.

Your far more clued up on this than I am Rath so was wondering if you had any idea of where to start digging for that info?

[Kurt2013]

Ive often wondered if the breakdown of Funcoms financials is also available ie: specifics of AoC/TSW revenue/costs etc.
I know that level of financial transparency is the standard for some countries & that all companies have to "declare" so to speak, but just wondered if that level of detail is available from Funcom?

Surely with them on the lookout for potential investors those details should be readily available.

Your far more clued up on this than I am Rath so was wondering if you had any idea of where to start digging for that info?

I remember something like that from their annual report in 2011 or so...
Maybe you find something in that one for 2014?

[Roragar]

Thanks for that Kurt, just having a look at the 2011 one now