Chinese game developer and publisher ChangYou reported that the company’s losses for the third fiscal quarter of 2014 increased, and the profit was below the expected level. The main reason for this deterioration in financial indicators, Gameindustry resource calls the company’s decision to develop a mobile direction.
ChangYou’s revenue for the third fiscal quarter, which for the company ended on September 30 of this year, amounted to $180.8 million. This amount is almost equivalent to revenue for the same period in 2013 and $5.2 million lower than expected. Online games accounted for the majority of the company’s revenue – $150.3 million, which is 7% less than in the 3rd quarter of 2013 and 7.7% lower than expected results.
The deterioration of the company’s financial performance was due to an increase in costs: operating expenses increased by 86% and amounted to $133 million. Development costs increased by 75% to $53 million, while sales and marketing costs increased by 88% to $52.9 million.
We add that ChangYou made the decision to switch to the mobile direction in March of this year. The company’s management has promised to spend $600 million for these purposes.
Other materials on the topic:
- Top 25 richest public companies in the gaming industry (Q1 2014)Source: http://www.gamesindustry.biz
ChangYou.com ltd is a Chinese publisher and developer of online games.
Mainly specializes in MMOG. The company was founded in 2007.