Norwegian developer Funcom will lay off 20 percent of its workforce and delay the release of upcoming MMO The Secret World
by several months, according to media reports.
The Age of Conan
developer recently opened a Montreal studio
with the backing of a Quebec investment firm. At the time the studio was founded, Secret World
director Ragnar Tornquist said "a large and important part of the TSW
team" would be housed there. The MMO is slated for release on PC and Xbox 360.
But the company has apparently encountered challenges forcing layoffs and delays, according to translations of a report from news site E24
, which said the company's stock fell 18 percent on the heels of the announcement.
The company's Age of Conan
struggled at launch, falling far short of expected user numbers and contributing to a $23.3 million loss
in its fiscal fourth quarter and the resignation of the company's chief financial officer -- as well as the game's producer and director
, Gaute Godager, also a Funcom co-founder.
It now maintains subscriber numbers for Age of Conan have stabilized
, and the company recently announced an expansion for the title called Rise of the Godslayer