Funcom Hit With Heavy Layoffs

Age of Conan creator Funcom has announced plans to cut 20 percent of its workforce, a decision which has resulted in a lengthy delay of the launch of its next MMOG, The Secret World.

News of the cuts came via an E24 report (translated by Google), which said that while the Norway-based Funcom has operations in China, Switzerland and the U.S., the majority of the cuts will affect the Norwegian team. Because of the layoffs, the company said, the planned launch of The Secret World, a new MMOG being developed for the PC and Xbox 360, will be pushed back by several months. Funcom stock dropped 18 percent following the announcement.

The reductions may seem unusual in light of the fact that they come less than a month after Funcom opened a new studio in Montreal, but as the report notes, the company's intention was not to increase its numbers dramatically but to move its Norwegian employees to Quebec, where it could take advantage of the notoriously generous tax breaks offered by the province. That, coupled with "generally lower pay levels," means the move could see payroll expenses at Funcom cut in half. The company has "invited" its 220 employees to relocate to Canada and says it will hire another 100-150 people for the Montreal studio over the next 18 months.

Funcom confirmed the cuts in an message on its website, saying it would "better align the Company's operations to the current marketplace." Plans for the Age of Conan expansion Rise of the Godslayer as well as its launch in Korea will continue as planned, although E24 noted that the game is still suffering a "continued negative trend subscription" rate.

Source: Edge

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oppp7:

corroded:

oppp7:
When is the economic downturn gonna stop? I thought everyone said it was over.

Good economoic conditions can't save you if you make crap games.

True, plus more people would play it if it didn't have subscription fees.

And then they'd lose money? MMOs are expensive to run...

corroded:

CantFaketheFunk:

oppp7:

corroded:

oppp7:
When is the economic downturn gonna stop? I thought everyone said it was over.

Good economoic conditions can't save you if you make crap games.

True, plus more people would play it if it didn't have subscription fees.

And then they'd lose money? MMOs are expensive to run...

Wasn't it 200 million quid for the entire global costs of World of Warcraft since release?

Which, it like a month of subs currently. Or basically... if everyone paid their £75-£105 depending on how ripped off you feel like being would still be more than the running and dev cost!

I'm sure World of Warcraft hasn't cost £600-1000 million to develop.

200 million back in 2006 before Burning Crusade came out, before it launched in China (where they pay much less than in the West, but consume the same resources). And that wasj ust *upkeep*.

http://www.escapistmagazine.com/news/view/94800-What-It-Takes-To-Keep-World-of-Warcraft-Running - WoW is ridiculously expensive to maintain.