Age of Conan

Funcom have final released it financial resultes for the first fiscal quarter of 2008, with a earning before interest and tax loss of $3.13 million, compared to a loss of $1.21 the last year - due to increased cost of marketing and repairing of Age of Conan.

Funcom earning after tax also increased from a loss of $220,000 lasy year to a profit of 919,000, but put down mostly to currency flucuations and tax inome. Funcom also reported a cash balance of $47 million at the end of March 2008. A goldmine to help to take advantage of a relatively clear launch window, here with both primary competitors as World of Warcraft: Wrath of the lich King and of cause Warhammer Online Age there both are going to be released this year.

However, Funcom also mention some potential risk with the launch of Age of Conan, mostly about the stability of the server and of cause maintaining the subscriber number in the following month. Strange enough, Funcom dont have a overview of the pre-order status of Age of Conan, there lead hints to only a few have actully preordre the game. During there "Open Beta" funcom claims to have experienced some
technical issues about the game and most of those was fixed in about 10 days.

Funcom is still a High risk company, but if they manage to gain 250K subscribe they will be profitable.

I think it will definitely do better than Vanguard (initially). The question is, how well will it do after the first 3 months of launch? The answer depends on how many bugs they thwart between now and then. I kind of wish they could delay it for Winter / Xmas season to put more polish into it... but obviously that ain't gonna happen. . If the game fails completly, Funcom will most likley go bankrupt and loose all money.

Link: http://p036.d1.funcom.com/funcom/frontend/files/CONTENT/Funcom_Q108_Report.pdf

The whole issue is based on their ability to turn a profit by having 250K subscriptions.

I think thats not High risk at all. I know the gaming culture, I know the current gaming climate. If all the company needs is 250K subscriptions...

I would put money on that bet!

I like Funcom as a company, I bought the preorder and I'll be playing the game and supporting them.

Kind of opens my eyes on what a porject like this must cost to get off the ground.

Meanwhile immature impatient adults acting like 12 year olds cry because everything in a very complex system is not perfect. 

I hope Funcom does well.

Interesting if true, just a few quick questions.

Is that a typo or did you mean to type they had a cash balance totaling only 47 dollars at the end of march?.

And more importantly how did you manage to sneak into my house and take a picture of my PC without me noticing?

Or is that just a representation of what the average users PC might look like after attempting to play in one AOC’s EPIC! MASSIVE! HUGE! keep siege battles?

EDIT i checked myself, correct figure for cash flow statement end of period 31 march 2008 is TUSD 46,991 in cash and equivalents.

Originally posted by Battlekruse

 Funcom dont have a overview of the pre-order status of Age of Conan, there lead hints to only a few have actully preordre the game.

http://www.amazon.com/gp/bestsellers/videogames/12508701/ref=pd_ts_zbw_vg_12508701_more?&pf_rd_p=302739501&pf_rd_s=right-4&pf_rd_t=101&pf_rd_i=229575&pf_rd_m=ATVPDKIKX0DER&pf_rd_r=1W3JDAWZYFV7VT8XXMG5

There is also some info that already 700.000 copies are sold BUT i refuse to believe that.
( WoW had like 500K US and EU together )

Originally posted by Polarization

 

 

 

Interesting if true, just a few quick questions.

Is that a typo or did you mean to type they had a cash balance totaling only 47 dollars at the end of march?.

And more importantly how did you manage to sneak into my house and take a picture of my PC without me noticing?

Or is that just a representation of what the average users PC might look like after attempting to play in one AOC’s EPIC! MASSIVE! HUGE! keep siege battles?

Originally posted by Czzarre

The whole issue is based on their ability to turn a profit by having 250K subscriptions.

I think thats not High risk at all. I know the gaming culture, I know the current gaming climate. If all the company needs is 250K subscriptions...

I would put money on that bet!

IF AoC can launch smooth and keep up with the demand that the players place on them, they will be fine but that is a huge IF.  

Most gamers in the current market will make up their mind quickly about AoC and either quit or keep playing, after 3 months check the subs and see were its at... If they can maintain 250k they will be turning a profit, if they get 250k and then after the first 3 months they have to do server merging then they will go out of business and SoE or another big company will scoop up AoC and run with it.

(I say SoE because they love to buy games after the game releases and the development company dies)

Originally posted by Polarization

 

 

 

Interesting if true, just a few quick questions.

Is that a typo or did you mean to type they had a cash balance totaling only 47 dollars at the end of march?.

And more importantly how did you manage to sneak into my house and take a picture of my PC without me noticing?

Or is that just a representation of what the average users PC might look like after attempting to play in one AOC’s EPIC! MASSIVE! HUGE! keep siege battles?

That is 46,991,000 USD they have on hand as of March 31, 2008.  They had no choice but to launch.  They are out of money.  This is what bites all of these companies and forces them to launch when they'd all rather spend more time in devopment. 

Originally posted by Polarization

 

 

 

Interesting if true, just a few quick questions.

Is that a typo or did you mean to type they had a cash balance totaling only 47 dollars at the end of march?.

And more importantly how did you manage to sneak into my house and take a picture of my PC without me noticing?

Or is that just a representation of what the average users PC might look like after attempting to play in one AOC’s EPIC! MASSIVE! HUGE! keep siege battles?

I hope FC do manage to retain 250k subs after 3 months although it's by no means certain, I believe LotRo for example falls way short of that mark.