ChangYou's profits have decreased
Chinese game developer and publisher ChangYou reported that the company's losses for the third fiscal quarter of 2014 increased, and profits were below the expected level. The Gameindustry resource calls the company's decision to develop a mobile business the main reason for such a deterioration in financial performance.
ChangYou's revenue for the third fiscal quarter, which ended on September 30 of this year for the company, amounted to $180.8 million. This amount is almost equivalent to revenue for the same period in 2013 and is $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 in the company's financial performance was due to increased 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.
Let's 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.
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Source: http://www.gamesindustry.biz
ChangYou.com ltd is a Chinese publisher and developer of online games. He mainly specializes in MMOG. The company was founded in 2007.
