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.
