The trial against the ex-CEO of Funcom has started. It concerns a financial scandal surrounding the commercial failure of the MMORPG The Secret World.
In Oslo, Norway, the trial against Trond Arne Aas, the former head of MMO specialist Funcom, begins today on Tuesday. He resigned from his position in 2012. Three other former Funcom executives are also being charged with insider trading. Aas is additionally accused of market manipulation.
It is quite a convoluted judicial matter. Essentially, it concerns the allegation that the ex-CEO sold his shares in the company just as the expensive and crucial MMORPG The Secret World was launching, which then became a commercial failure.
All four defendants maintain their innocence. The trial is set to last for 10 weeks.
Regarding the financial gain of the defendants, the Norwegian outlet e24 mentions approximately 19 million Norwegian kroner – which would be around two to two and a half million euros depending on the exchange rate.
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The idea behind the indictment, simplified: Someone who knew more than everyone else made a profit before the flop was released. While the rest of the market participants might have still believed that The Secret World could be a hit and make a lot of money – the defendant would have known it would flop and sold his shares while the company was still considered valuable in the eyes of the market – also because Funcom made many positive and optimistic statements and forecasts.
This method is often referred to as “Pump and Dump” – raising something and then disposing of it.
Aas defends himself, simplified once again, by saying: I didn’t know that The Secret World was going to flop. We received a lot of positive feedback.
The Secret World: Great Game, Yet Horribly Flopped
Generally, The Secret World is indeed regarded by critics as a game with exceptionally good atmosphere and great stories, doing many things differently than the generic fare of fantasy MMORPGs that sprang up during that time.
The flop is attributed to sluggish gameplay, confusing game mechanics, and an unfortunate release date. The Secret World was released in 2012 between Diablo 3 and Guild Wars 2. And those were both hits, as we know. Neither the then ArenaNet nor the Blizzard CEO is facing court due to these games.
The entire scandal has since been closed for the company Funcom. They have been fined and paid – Funcom is no longer involved with the matter. In the meantime, Funcom has returned to calmer waters after some tough years and is officially “saved.” Funcom is now focusing on a new strategy, moving away from MMORPGs, and is trying something else, such as with the survival title “Conan Exiles” – so far it seems to be going quite well.
The online game The Secret World convinces with a unique atmosphere - as it uses our modern world as its setting. With the small but fine difference that myths,...
