Archive for May 17, 2011

Cryptic and Atari go separate ways

May 17, 2011 1 comment

So the news is now out that Atari intends to dump Cryptic as part of their long term plan to have fewer titles and focus more on the social/facebook/causal game space. There is a post at Massively about it, which refers to a Gamasutra post, which in turn likely have looked at the latest financial report from Atari.

Reading a bit beyond the full year numbers one can see that Cryptic for the whole fiscal 2010/2011 had a net loss of 5.3 million Euro, of which 3.3 million Euro was from the first half of the year. So the second half was doing better.

Looking at the revenue they got 7.2 million Euro for fist half and 15.9 million for the whole year, i.e. 8.7 million Euro for the second half. So people paid them 1.5 million Euro more during the second half. Their profit improvement, although still a net loss, was about 2 million Euro in the 2nd half compared to the first. An improvement of 1.3 million when you get 1.5 million more from customers does not sound bad. How much did the Champions F2P conversion contribute to that?

And it does sound like the company is going in the right direction and they have been hiring more people who will start soon. So financially I think they probably already have something sorted out; either some other company buying them or some investors liking the direction the numbers are going and who may be more interested in the traditional MMO market than Atari.