Just the facts: Massive NG layoffs as financial losses mount.

Let me preface this post with the links to both articles i'm getting my information from.

First a link to the older article and the information within, I will not pick and choose and will just post it all. This was posted at the end of 2017 4th quarter before "Our World" is announced and this is hinted at in this article from NG'S acquisition of augmented reality game developer "Lume Games"

https://pocketgamer.biz/news/67438/next-games-financials-fy17/


"Next Games has released its financials for the full year of its FY17 ending December 31st 2017.

The developer posted revenues of $40.5 million, up 4.5% year-on-year. However, the company's loss for the year grew to $7.97 million, increasing from $1.99 million in its FY16.

Next Games has also suffered slightly in player retention. DAUs are down to 432,000 from 438,000 in 2016, while ARPDAU has fallen to $0.22 from $0.23.

Moving forward

Profits were impacted by the acquisition of AR developer Lume Games and the company's IPO. CEO Teemu Huuhtanen also noted that the only game to generate significant revenues for the developer in 2017 was The Walking Dead: No Man's Land, which the studio is beginning to move away from.

The company now employs 119 people, 24% of which are focused on No Man's Land. The rest are working on new titles such as The Walking Dead: Our World and Blade Runner 2049. Next Games is aiming to launch at least one new game each year from 2018 onwards.

Next Games is now aiming to grow to 200 staff, with an office in Los Angeles and a bigger headquarters in Helsinki. It is also developing an unannounced title along with its two other games in development."


Now for the very recent article with the no good very bad quarter info for Next Games:

https://pocketgamer.biz/news/70034/the-walking-dead-our-world-dev-next-games-lays-off-26-staff-as-losses-mount/

The article:

"Next Games has laid off 26 staff as the company reported total losses for 2018 of €17 million ($19m).

Operating losses increased from the previous year when the company reported a loss of just over €5m ($5.6m). Revenue however was up to €35.2m ($39.7m) for 2018, from €32.4m ($36.6m) the year prior.

During the half-year July to December period, sales grew by 90 per cent year-on-year to €24.8 million ($28m). At the same time losses for this period grew to €12 million ($13.5m), greater than the loss of €4.2m ($4.7m) the year prior.

"Technical challenges"

2018 saw the launch of location-based augmented reality game The Walking Dead: Our World, which released in July.

However the launch was said to be marred by “technical challenges”. While now fixed, Next Games said it had to scale back on marketing, affecting revenue. However it still pointed toward high marketing expenses for Our World affecting profitability also.

Its currently in soft-launch title Blade Runner Nexus remains in development. The company however terminated a collaboration with Universal Games and Digital Platforms on another project in January this year, despite the title reaching the production phase.

Next Games does still however have another licence agreement signed as of Q3 2018 for what the studio claims is an “extremely sought-after licence”. It also has a new project in the works without a licence currently attached to it.

Focus on profitability

As the company struggles with increasing losses, this month it has laid off 26 staff, reducing its headcount from 143 to 117. Chief product officer Emmi Kuusikko has also left the company to "pursue new challenges".

Moving forward, the company plans to focus on the profitability of its existing titles, while it has put nearly half of its staff to work on new projects.

“I expect the company’s turnaround project to be concluded during the first half of 2019, after which we will see much better alignment across projects as well as improved operational efficiency across the company,” said Next Games CEO Teemu Huuhtanen.

“The investments made in 2018 have been a significant cornerstone to build a solid foundation for the company’s product pipeline. Next Games has an extraordinarily committed staff and I look forward to together continue develop the company, our culture and values further in 2019.”

In its financials report, Next Games noted that should its turnaround project not be successful, or no additional capital is raised, “it may carry a significant risk relating to the company’s ability to launch new titles and it may affect overall liquidity for the company"."

So I'm just putting this information out there for all those that play NG games, including either Our World or No Man's Land. Chief Production Officer leaves, but they state they will focus on "profitability" of its "existing titles", like No Man's Land, but profitability can only be sustained by the pockets being emptied of their gamer base, especially without bringing new gamers into the NML fold.

My take:


I feel it is fair that the company also hints that the staff cuts are due to not only Our World success issues but also "technical issues", could this be the server issues we saw during "guild wars"? Not only that but NG outright admits in the aforementioned article in its own financial report "Next Games noted that should its turnaround project not be successful, or no additional capital is raised, "it may carry significant risk relating to the company's ability to launch new titles and it may affect overall liquidity for the company".


In other words out of business, sold to the higher bidder, or finding ways to make its "foundation" games (no mans land) more profitable.

So everyone can see here is a link to NG's current stock profile. Quite the slide in the last month.
https://bloomberg.com/quote/NXTGMS:FH




Guts & Glory, not always in that order.
MystiqueMrLuckyromeobladgieravelardezGovernatorbigbeanoMFJigsawLucasMcCain

Comments

  • Katz_Killers18Katz_Killers18 Member Posts: 191
    So what is your point in posting this @afroponix? Just curious.


    Killdozer187_MystiqueMrLuckyafroponixJaden
  • BohemianbobBohemianbob Member Posts: 28
    Heh, think I started playing a week or so after their Sept 15, 2017 stock high.
    If anything I blame TWD writers and their inability to pace the storyline to the level of the first three seasons.
    Member of the Top Secret Guild ⚔️
    romeoJaden
  • afroponixafroponix Member Posts: 496

    Man, my time travel machine is on the fritz. I thought we were in 2019. The only link that works is the one from 2018. :sunglasses:

    all links work, including the one from 4th quarter of the previous fiscal year, otherwise the most recent
    quarter.

    So what is your point in posting this @afroponix? Just curious.

    thought it was obvious but i guess not, by giving information to the masses about a company that runs a game that we all play, and many spend money on i am just trying to create a more informed gaming, end game, and spending class, and perhaps would even turn some players from spending gamers into possible gaming investors if they would want to...if you know your stocks, now would be the time to do it...but no, that isn't even my exact point. It is this;

    Such is the meme of now and the past "knowledge is power"..im sure someone has that lame gif hanging around from the 80's psa days stating that, but it is true, and now you can decide to do with it or consume that knowledge however you want.

    Ergo, my point is to INFORM people, and hope the best for those who would rather stay informed treat this knowledge as it is: reality, one you can choose to participate in or not. Of course there are always those that would rather stay blissfully ignorant of anything, and that is your choice as well, if that is the case read the post and don't respond, or do respond for all i care...i really dont mind either way.

    You have been informed. Facts are Facts, I presented them, you can decide to do what you want with them.
    Guts & Glory, not always in that order.
    GovernatorMFJigsawDrUnpleasantDrhooGobold69
  • Katz_Killers18Katz_Killers18 Member Posts: 191
    Wait, what's CHAPTER15? Is that a SPOILER?!
    I don't want no STINKING SPOILERS man!



    MrLuckyBWilsJaden
  • Katz_Killers18Katz_Killers18 Member Posts: 191
    @afroponix I can see your point. It just looked negative, like slamming NG and there's been a lot of that lately.
    I am in no position to make any investments in stocks just an occasional bundle, so I suppose I will continue to be blissfully ignorant, YET optimistic! I'm sure anyone who is in the position to make that type of investment or has that concern totally appreciates your thorough investigative work, kudos!


    afroponixMrLuckyromeoJaden
  • avelardezavelardez Member Posts: 941
    > @Katz_Killers18 said:
    > Wait, what's CHAPTER15? Is that a SPOILER?!
    > I don't want no STINKING SPOILERS man!

    Chapter 15 would be on the Whispers with daryl calling into camp and reporting that they are at the wall. Perfect time to get a few chapters in.
    Katz_Killers18
  • afroponixafroponix Member Posts: 496
    > @bladgier said:
    > It's too painful for me to read trough the whole thing.
    >
    > I hope they'll get better one soon.
    > It's a game that I'm (we are) playing that I wouldn't want to shut down. Also people loosing their jobs that's a very depressing thing too.
    >
    > JSS!

    Well I have to say I agree! Especially after everything happened with tell tale games going into liquidation and skybound games having to buy them out and release their final walking dead project it makes me nervous the same could be happening here, and I’ve played NML from the start? So at best maybe skybound games would buy them out to support the walking dead fan gaming community, at worst the game would go good bye all together and that would totally suck...I think we agree on that.

    At least there’s a chance if things did go the bad way skybound games (TWD comics’ gaming branch) would buy NML, but I believe this game is licensed by AMC, not skybound like tell tale games was, so who knows what would happen?
    Guts & Glory, not always in that order.
  • mongo_nine_one_onemongo_nine_one_one Member Posts: 224
    Ummm...

    I haven’t been living under a rock...

    Long ago... ( years ) I shared the same information...

    and... “ I “ do have, a little dog in this thing...


    Sigh...
  • GovernatorGovernator Member Posts: 3,304
    afroponix said:

    Man, my time travel machine is on the fritz. I thought we were in 2019. The only link that works is the one from 2018. :sunglasses:

    all links work, including the one from 4th quarter of the previous fiscal year, otherwise the most recent
    quarter.

    So what is your point in posting this @afroponix? Just curious.

    thought it was obvious but i guess not, by giving information to the masses about a company that runs a game that we all play, and many spend money on i am just trying to create a more informed gaming, end game, and spending class, and perhaps would even turn some players from spending gamers into possible gaming investors if they would want to...if you know your stocks, now would be the time to do it...but no, that isn't even my exact point. It is this;

    Such is the meme of now and the past "knowledge is power"..im sure someone has that lame gif hanging around from the 80's psa days stating that, but it is true, and now you can decide to do with it or consume that knowledge however you want.

    Ergo, my point is to INFORM people, and hope the best for those who would rather stay informed treat this knowledge as it is: reality, one you can choose to participate in or not. Of course there are always those that would rather stay blissfully ignorant of anything, and that is your choice as well, if that is the case read the post and don't respond, or do respond for all i care...i really dont mind either way.

    You have been informed. Facts are Facts, I presented them, you can decide to do what you want with them.
    The link provided comes up as: http://https//www.pocketgamer.biz/news/70034/the-walking-dead-our-world-dev-next-games-lays-off-26-staff-as-losses-mount/

    You need to fix the link address. I removed the extra "https" extra at the beginning and the page then loaded. :neutral:
  • afroponixafroponix Member Posts: 496
    @Governator

    Got ya, was wondering why it wasn’t working for u..my fault, copy pasting link error on me
    Guts & Glory, not always in that order.
  • LoneWanderer360LoneWanderer360 Member Posts: 138
    It's unfortunate, but when they roll out new features that turn into a giant clusterfuck, it discourages people from spending money.

    I'm not saying it affects everybody the same, but the last few updates have caused my game on my device to crash constantly and NG has been no help to me at all. So I've stopped spending any money on this game completely.
    MFJigsaw
  • xyf80xyf80 Unconfirmed, Member Posts: 60
    make what make profit which is TWD no man's land, update those challenge maps, make it more fun to play to hold off players, while get rid of craps whatever make loss, stop thinking making new title if you could not even make current players happy.
    romeo
  • LucasMcCainLucasMcCain Member Posts: 6
    I find it interesting, worthy of a "like". A business that basically only requires electricity and game designers, losing $19m big ones coming on increased revenue.
  • Bill_ZRTBill_ZRT Member Posts: 1,330

    I find it interesting, worthy of a "like". A business that basically only requires electricity and game designers, losing $19m big ones coming on increased revenue.

    I've been trying to avoid commenting in this thread, but I'll at least respond to this specific issue. NG's business model is to acquire the rights to lucrative, popular IP (intellectual property) and to build games around that IP. Getting the rights to create a game based on TWD, Game of Thrones, Star Wars, Marvel or other extremely popular IP brands is extremely expensive. Obviously none of us are going to be privy to the details of their contracts with the IP holders, but suffice it to say that these deals are not cheap.
    Everyone’s got two wolves inside them. One is anger, envy, pride. The other…truth, kindness. Every day they tear each other apart.
    But it’s not the better wolf that wins. It’s the one you feed.

    Contact [email protected] or send @Bill_ZRT a message to join DTP today!

    romeoDodkongInfinite_M0nkeyBWils
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