Funcom looks back on its last quarter, Q2 2017. There are interesting insights into Conan Exiles and Secret World Legends.
Funcom is a Norwegian developer. It used to be an MMORPG specialist with Anarchy Online, Age of Conan, and The Secret World – but the path led step by step into a downturn. That has changed, and the company is quite proud of it.
Funcom looked back on its Q2 2017 on August 31. The good news upfront: It is doing well.
The second quarter wasn’t particularly strong, but the first quarter was a game-changer thanks to Conan Exiles. The first half of 2017 was the most profitable half-year in Funcom’s history.
The company’s debt has been halved. Not too long ago, Funcom was in deep water and there were thoughts of needing to sell everything soon.
Then a new strategy was introduced. They wanted to get into the trending survival genre, seeing a chance to save the company. The Conan brand was supposed to help.
Creditors came on board and gave Funcom breathing room. Then Conan Exiles was released and made a lot of money. The risk of bankruptcy is therefore initially gone. However, … the success is not yet firmly established, even though they have now adopted a new logo.
The revenues are much lower compared to the first quarter of 2017.
Conan Exiles: Xbox One launch was a flop
Funcom owes its success to Conan Exiles. This was the cash cow for the company in the first half of the year.
However, they are now dissatisfied, with how the early access launch on Xbox One went. It did not meet the standards they set for themselves and what the fans deserve.
They say: This is because we are coming out of a crisis, and we need to increase our staff. But we will do better.
The Xbox revenues are still not included in the sales for Q2; the launch in the game preview program was only in August.
Conan Exiles – Release planned for 2018, price will increase
The analysis of Conan Exiles is: Gameplay is going well, players enjoy it, but we now need to work on the technical quality so that we are ready for the release in early 2018. A lot is expected to happen before the release, such as further expansion of the map.
At release, they plan to increase the price of Conan Exiles. Additionally, they plan to do significant marketing. They are optimistic that it will bring a lot when Conan Exiles hits the shelves, because the “Conan the Barbarian” brand is so strong that it will appeal to a broad audience.
Funcom has problems in China. There, Conan Exiles is generating very little revenue and getting a lot of poor reviews – they are looking for a local partner to address the issues.
Secret World Legends – gone well, but has little impact
The second big title at Funcom is Secret World Legends. This is the relaunch of the MMORPG The Secret World as a free-to-play title.
They say: Players enjoy it, and the press likes it too. However, overall, the game is relatively too small compared to Conan Exiles to have a real impact on the company’s revenue. Secret World Legends could not elevate Q2 to the level of Q1.
Revenues and player numbers in June and July were the highest since 2013. However, they expect it to drop to a lower level.
They particularly highlight the TV series that is in planning. However, this will not have an immediate financial impact, rather it is meant to strengthen the brand.
Regarding Funcom’s other games, Age of Conan and Anarchy Online, there is nothing mentioned in the presentation. They already stated in February that nothing relevant would happen there.
New games in development
Funcom currently has two games in development:
- A new game with the Conan license is being developed in Oslo – no details available
- In North Carolina, they are also planning something, but they are even less forthcoming about it. How it continues depends on the success of “Secret World Legends”
- Additionally, they will likely act as a publisher for another game, which will be a “tactical strategy game” by Bearded Dragons.
The future of Funcom depends on Conan Exiles – for better or worse
Mein MMO believes: Conan Exiles has saved Funcom. However, the barbarian MMO risks falling into the early access trap: a lot of hype at the start and then hardly anyone is interested in the game. Funcom is currently consolidating, but if Conan Exiles turns out to be a flash in the pan that is now extinguishing, they will soon have a serious problem again.
The future of Funcom depends on Conan Exiles, on a single game. Realistically, Secret World Legends will not decide the fortunes of Funcom. And it will take time before new games come to market.
Funcom needs a successful launch in Q1 2018 on PS4, Xbox One, and PC. Especially if the price goes up, they will need to offer more than just a bunch of penis jokes.
Read more about Secret World Legends and what we thought here:
