Despite transitioning the critically well-received but financially unsuccessful MMO, The Secret World, to a pay upfront model that saw a rise in profitability, developer Funcom is going ahead with planned restructuring. The developer has announced it will be closing its Beijing studio in 2013, as well as effecting redundancies at its Montreal studios.
Shifting Focus to Smaller Scale Online Games
The entire operation is to shift focus to smaller scale online games, with the Montreal studio moving to tablet and mobile development with reduced staff. This strategic pivot reflects the growing trend in the gaming industry where mobile and tablet gaming are becoming increasingly popular. By concentrating on these platforms, Funcom aims to tap into a broader audience and leverage the lower development costs associated with mobile games. This move is expected to help the company remain competitive in a rapidly evolving market.
The company’s North Carolina branch will take on a bigger role, becoming the nerve center of its three online properties, The Secret World, Anarchy Online, and Age of Conan. This consolidation is intended to streamline operations and ensure that resources are allocated more efficiently. By centralizing the management of these games, Funcom hopes to enhance the quality and consistency of updates and support for its player base.
Impact on Employees and Future Prospects
The closure of the Beijing studio and the downsizing of the Montreal studio will undoubtedly have a significant impact on the employees affected by these changes. Funcom has stated that it will provide support to those who are being laid off, including assistance with job placement and severance packages. This restructuring is part of a broader effort to ensure the long-term viability of the company in a highly competitive industry.
In addition to focusing on mobile and tablet games, Funcom is also exploring new business models and revenue streams. This includes the potential for microtransactions, subscription services, and partnerships with other companies. By diversifying its revenue sources, Funcom aims to create a more stable financial foundation for future growth.
Moreover, the company is investing in new technologies and development tools to improve the efficiency and quality of its game development process. This includes adopting advanced analytics to better understand player behavior and preferences, which can inform the design and marketing of future games. By staying at the forefront of technological advancements, Funcom hopes to maintain its reputation for creating innovative and engaging gaming experiences.
The decision to restructure and refocus on smaller scale online games is a bold move that reflects the changing landscape of the gaming industry. While it comes with challenges, it also presents opportunities for Funcom to reinvent itself and continue to deliver high-quality gaming experiences to its audience. The success of this strategy will depend on the company’s ability to adapt to new market trends and effectively manage its resources.
In conclusion, Funcom’s decision to close its Beijing studio and downsize its Montreal studio marks a significant shift in the company’s strategy. By focusing on mobile and tablet games and centralizing the management of its online properties in North Carolina, Funcom aims to position itself for long-term success in a competitive industry. The impact on employees is a serious consideration, but the company is committed to supporting those affected by the changes. With a renewed focus on innovation and efficiency, Funcom is poised to navigate the challenges ahead and continue to thrive in the gaming market.
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