Weak sales, increased competition and deferred billings for The Secret World result in tough Christmas for MMO firm

Funcom’s Q4 revenues drop $3.5m year-on-year

The Secret World publisher Funcom has reported that its Q4 revenues fell year-on-year by just over $3.5m in 2013.

In Q4 2012, the company generated $7.78m but only made $4.27m in the three months ending December 31st, according to Polygon.

Funcom attributed to decline to weaker sales, increased competition in the MMO space and deferred billings related to it’s latest release The Secret World.

However, the MMO firm described its audience as "relatively stables" and said previous releases Age of Conan and Anarchy Online continue to be its main sources of revenue.

"All games in the large-scale MMO segment are cash flow positive and will remain so in the foreseeable future," Funcom said in an investor presentation.

The firm plans to continue following the strategy it announced back in 2012: developing games more quickly with smaller teams and releasing more than one game per year.

Funcom also hopes to make its Dreamworld engine cross-platform, with Android and iOS compatibility expected this year. It is currently working on LEGO Minifigures Online, a title that is due to enter open beta this summer.

Funcom has be suffering from a number of financial issues in recent months. In January, it was suspended from the Oslo Stock Exchange and raided by an economic crime unit.

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