The Norwegian software studio Funcom, a specialist in MMOs, is also shrinking in Q1 2015, although they have reduced both expenses and earnings.
“Shrink yourself healthy,” seems to be the credo at Funcom. Compared to Q1 2014, they have significantly earned less. The games in the portfolio are aging and generate less revenue.
However, they have also lowered costs and are now spending less than in previous quarters.
From the last major project “The Secret World”, Funcom has learned not to put too many chips on one field. They are now developing “mid-core online games” with budgets between 3 and 6 million dollars. This requires a different corporate structure: the restructuring takes time. “The Secret World” is performing according to expectations; even with the older “Age of Conan,” they report that fans have positively received the new achievement system.
For the future, Funcom anticipates that the existing games will generate less revenue as they age.
As the next major point, they have planned to switch Lego Minifigures Online from its current free-to-play model to a buy-to-play model. There are some issues, and the switch is intended to create momentum.
Information about the planned next major project, for which Funcom has already reassigned employees from existing games, is not found in the report.
