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Funcom will continue to invest in TSW
Melieza
Member Posts: 269
"Funcom will continue to invest in The Secret World going forward"
"TSW is cash flow positive"
"TSW makes more revenue per user than any other Funcom title"
"TSW currently has high retention and extremely positive customer satisfaction"
Yeah, it didn't get a lot of box sales, but Funcom knows they have a good game and are going to continue to invest in it and market it to change that. As they should.
Comments
Sweet. It's a solid game and though I cancelled my sub, I'm happy they're going to put money into it. I may be back sometime.
Um. Cash flow positive? I doubt they're close to breaking even yet.
More revenue per user isn't a shocker given it's the most costly per user at the moment as well. My guess is that AoC has a much larger profit margin.
This is all corporate speak for "We can't afford to shut down the game until we make our money back and please don't leave!"
I don't want the game to do poorly, but I hate those types of spin.
Nice cherry-picking.
1. Of course they will continue to invest on it, they've nothing else going for them (don't even say AoC, please!)
2. How many people lost their jobs to be "cashflow positive? They also have a large decifit, even after $35M impairment charges.
3. Yeah, that's just amazing, AoC has been dead for years and AO is even worse. I bet this is point is true.
4. Fine, won't argue other than that many had only paid just 1 actual subscription at the time they made this statement, the second is coming up, might not be as pretty next time.
Dem rainbows, man.
Cash flow positive means they're making more then they're spending in maintenance costs and such, which makes sense, they said previously since they used the same engine and have single server tech TSW has very small upkeep costs.
Also, they said TSW had a 35 million development fee, which is insanely cheap. It's really astounding to me, I didn't think you could work on an MMO for five years with amazing graphics for under 50 milllion.
Yes but I strongly doubt they have regained the production costs. 200k boxes and estimated 100k subs is pretty bad...
My gaming blog
Point 1: Yes, they will continue to invest in TSW. But at drastically reduced levels.
Point 2: So after they fired 150 people they are able to keep the game cash flow positive. Is that enough cash flow to cover tens of millions in debt? No, it is not enough.
Point 3: Yes, they are earning more with the in game shop.
Point 4: They defined high retention: in between the retention goals listed in their Q1/2012 report. You know what high retention means at Funcom? 30% retention over the year.
Overall? They can't afford to market it because they are financially strapped. Unlike AoC, which sold 800k off the top and 4 YEARS after that only sold another 250,000 copies, what do you think a game that has sold 200,000 is going to sell in the next 6 months?
The game will be lucky to have 125,000 subscribers by the end of the year.
No, they definitely haven't. I estimate they've made back about half of it so far. They'll work off the debt in time. They did hope to regain back the production costs right away though, which is where they were wrong.
Originally posted by gamesrfun
....what do you think a game that has sold 200,000 is going to sell in the next 6 months?
This is exactly what they're trying to change. Usually, a game won't sell much after the initial release, but because they know they can keep the players, they just need to get them first, they're going to try and fix that.
Once again, you're basing this on one round of subs. Guess I'll have to explain: People who bought the box have only paid ONE subscription so far (or none). Trying to make that seem like a good retention rate is really pushing it. It's understandable, that a lot of people weren't finished with quests after their free month ran out and bought 1 more month.
That, however, doesn't mean that their precious retention rate will stay as high and I'm willing to bet, that it won't.
Keep in mind, that they also count every "grandmaster" sub in this category, pretty easy to retain those, huh?
I expect F2P or free download, while keeping a sub+cash shop before their next report comes out.
Bite Me
Of course we all know Funcom can be relied on to uphold any statements they are making at this moment in time. Because their reputation as a solid reliable company that always tells the users what is happening, is beyond question.
50-60% layoffs is going to cost them as a company. Share price in free fall is going to have an impact. They are switching their focus away from MMO's, according to them, and you think they will continue to invest in TSW. These guys will be lucky to see it through to next year. They have next to nothing viable in the pipeline. They are basically starting from scratch and going into areas that are new to them. It's like a startup company all over again, but worse because they will never live down their already tarnished reputation.
Things to NOT say to your clients if they are actively paying a subscription;
"Funcom will no longer continue to invest in The Secret World going forward"
"TSW is cash flow not positive"
"TSW loses more revenue per month than any other Funcom title"
"TSW currently has low retention and a lack of positive customer satisfaction"
All of my posts are either intelligent, thought provoking, funny, satirical, sarcastic or intentionally disrespectful. Take your pick.
I get banned in the forums for games I love, so lets see if I do better in the forums for games I hate.
I enjoy the serenity of not caring what your opinion is.
I don't hate much, but I hate Apple© with a passion. If Steve Jobs was alive, I would punch him in the face.
you should add what Ragnar just said:
@Ragnar Tørnquist:
Funcom aren't giving up on #TSW. Quite the contrary, it's the company's main focus. The team will continue to work as planned!
I honestly feel like this is a game that will pull a semi EVE, in that it will slowly grow over time.
Its a very cool, very fun game, it justs one of those once you exhaust the content there's not a lot to do.
Once they flesh out the PVP more, and add some more PVE content and raids, etc, it will have a lot more to hold people with.
"The surest way to corrupt a youth is to instruct him to hold in higher esteem those who think alike than those who think differently."
- Friedrich Nietzsche
I ll continue suporting TSW , best mmorpg of this year
I think I am not alone ,....right?
True, but if any of them is real it's illegal to not say it on the quarterly report to the shareholders.
What can men do against such reckless hate?
I actually appreciate there honesty.
Bite Me
That's it.
Funcom as was previously known, is dead. They are looking to focus on smaller games. their whole outlook and strategy is going to be different. It has to all intents and purposes gone as a company from the traditional MMO business/market and is adopting a new focus.
Fashion Week a Free-to-play MMO, Social game In open beta phase, Investment phase
Pets vs Monsters a Free-to-play MMO In open beta phase, Monetization phase
Project A a Large scale MMO Concept phase, Investment phase
Project B a Free-to-play MMO Early development. Brand update
taken from http://www.newsweb.no/newsweb/search.do?messageId=306223 at the following link at that page Funcom 1Q12_presentation.pdf
Project A or B could be a massively multiplayer online game based on the hugely popular LEGO® Minifigures franchise.
http://www.funcom.com/news/funcom_to_develop_massively_multiplayer_online_game_based_on_lego_minifigur
And I'll say it once again, gamecompany's that want to release a MMORPG should NOT release a MMORPG mid summertime. Most populair MMO's have had their subs/playerbase drop in the summer, this procces repeats itsself almost every year. And something else that happens all the time with multi gamemaking company's is layoffs and it's more then understandeble that there is a increase in layoffs which we all see happening all over the globe with what ever branche of business due to the instability of our economics.
They sold less than 200K copies of the game to date. We are talking major failkure in mmo industry and Funcom heading off to make the Lego mmo for children.
Probably not going to pull an EVE. Why? Because TSW is a theme park and EVE is a sandbox. Sandbox games by tradition have had growing sub numbers over the course of their lifetime for several years, as the increasing number of players automatically brings increasing amounts of content, on top of what the development team can conjure up.
Theme parks don't have user created content and as such, are doomed to shrink from launch. WoW was an exception only because it brought a massive influx of players into the MMO genre. I believe the peak growth has been seen already and the amount of MMO players total in the world is much more stable now.
Wait...
Their other titles are what? AO and AoC?
AO is ancient, so no wonder there... but makes more revenue per user then AoC? A F2P cash shop game?
First we see Aion's cash shop faltering, now a statement that all might not be amazing over in AoC.
Maybe the cash shop model isn't the fail safe money minted future that so many are telling us?
Well a F2P player who spends 5 bucks a month in the cash shop is better than a F2P player who spends 0 bucks who is better than a player that does not play at all.
Hope you get my drift.