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Thread: Yo Funcom - Servers

  1. #21

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    Quote Originally Posted by SamHam View Post
    Strange... It's like stripping all the stuff off your pizza to cut costs and expect your company to turn an immense profit. Obviously in the short term the consumer won't be the wiser, but one taste and long term you've lost your clientele. Might be that's a sound business decision, in Mickey Mouse land.
    You're looking at long term profitability, but FC's problem at the time probably was short term cash flows. Think about it. When TSW was released, they expected significant revenues flows from box sales. It's likely that their financing was in part based on this - i.e., some of their loans will likely have had maturity days not long after release. And then they sold 200k copies instead of more than a million. That's exactly the type of situation where companies are forced to cut costs, even if these cuts also decrease revenue potential in the long term.

    Not saying it really happened like this (kind of hard to tell based on their financial reporting), but I think it's a likely scenario.
    Rathothis|Tempest of Set || Tigrathes|Dark Templar || Isitnofret|Herald of Xotli
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  2. #22

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    Quote Originally Posted by Rathothis View Post
    You're looking at long term profitability, but FC's problem at the time probably was short term cash flows. Think about it. When TSW was released, they expected significant revenues flows from box sales. It's likely that their financing was in part based on this - i.e., some of their loans will likely have had maturity days not long after release. And then they sold 200k copies instead of more than a million. That's exactly the type of situation where companies are forced to cut costs, even if these cuts also decrease revenue potential in the long term.

    Not saying it really happened like this (kind of hard to tell based on their financial reporting), but I think it's a likely scenario.
    Only studied economy for a while and although I do understand the meaning of cashflow, the decision seems quite... I really don't know what to call it anymore, but incompetence, fraud and deceit seems to follow FC like a bad hangover. Just hoping the days of shady characters and bad press is over. With new conan games and a renewal of the license there might yet be a sliver of hope (pizza theme is strong ) as far as funding goes.

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