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Funcom

UPDATE ON THE ONGOING FUNCOM RESTRUCTURING PROCESS

Published on (2013-01-25)


– North Carolina office to house centralized development team for all three live MMOs, Montreal studio to focus on the development of mobile, tablet and new technology –

Raleigh, USA – January 25th, 2012 – Funcom, a world leading independent developer and publisher of online games, today provided an update on the Company’s previously announced restructuring process. The restructuring is an important step in the long-planned implementation of the Company’s strategy of building smaller, high quality online games such as the upcoming LEGO® Minifigures game while at the same time continuing to support, service and expand its three successfully launched massively multiplayer games ‘The Secret World’, ‘Age of Conan’ and ‘Anarchy Online’.

Funcom announced last year that following the release of ‘The Secret World – which is the Company’s largest MMO project to date – that the Company would implement a strategy of developing smaller, high quality online games with more limited budgets and shorter production timelines. This would allow the Company to spread its investments and work on more games simultaneously. It has also been important for Funcom to make sure that the new strategy incorporates the continued support of the Company’s existing online games, which are all a vital part of its legacy as well as its future business.

As part of the restructuring Funcom is establishing a joint, centralized live team at its studio in Raleigh, North Carolina, whose primary responsibility will be expanding and enhancing the Company’s three live games and making sure the thriving community of loyal players receive the support they have come to expect after years of successful live operation. The centralized live team consists of many of the talented people that worked on those games previously, and it is Funcom’s ambition that each game will benefit from having a shared pool of skill, competence and creativity that makes up this highly experienced group of developers in the centralized, joint team in Raleigh, North Carolina.

The team in Montreal will work on currently unannounced projects for the tablet and mobile platforms, as well as continuing to improve and enhance Funcom’s own industry-leading Dreamworld technology.

The Dreamworld technology powers many of Funcom’s massively multiplayer online games, such as ‘The Secret World’ which was re-launched successfully in December to a buy-to-play business model. The move resulted in a 30% increase in overall sales and an increase in server activity of more than 400% as a result of many players returning to the myths and legends themed online game. The centralized live team will continue to build upon this success in the months to come.

“The live team in Raleigh, North Carolina, has up until today only housed our billing/tools, community, customer service, operations and quality assurance teams,” says Funcom CEO Ole Schreiner. “By bringing the developers on our live games to Raleigh it allows us to build a stronger, more unified team that can service and support our online games as they work to expand these worlds and create new experiences for the players who inhabit them. This will also allow us to have the team staying in Montreal focus exclusively on their new responsibilities of developing for tablets and mobile devices as well as working on new tech.”

The restructuring process includes a reduction in headcount at the Montreal studio among those who have not been relocated to Raleigh to be part of the centralized live team or who are not part of the new team which will be working with mobile, tablet and technology. As a natural result of the completion of the development on ‘The Secret World’, the Beijing studio, which primary responsibility was delivering art and animation to that project, will be closed down this year and the live team in Raleigh will be equipped with resources to produce visual assets for upcoming updates to the three live games. There has also been a staff reduction at the Raleigh studio in certain departments.

The restructuring process is still ongoing and Funcom will update the market on concrete numbers when the process has been finalized.

For more information about Funcom please visit http://www.funcom.com.

Enquiries may be addressed to investor@funcom.com.

###

ABOUT FUNCOM - Funcom is an independent developer and publisher of online games for PC and consoles. Funcom has provided outstanding entertainment since 1993 and continues to expand its track-record of more than twenty released games. Recent titles include ‘Age of Conan: Hyborian Adventures’, ‘The Longest Journey', 'Anarchy Online' and 'Dreamfall: The Longest Journey'. For corporate information please visit www.funcom.com. For information about Funcom games visit www.anarchy-online.com, www.dreamfall.com, www.thesecretworld.com or www.ageofconan.com. Funcom is listed on the Oslo Stock Exchange under the ticker FUNCOM. 

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