Changyou's Fourth Quarter Revenue Reports Show Decline In Their Online Games
Warframe and multiple versions of their ever-popular Tian Long Ba Bu, the game that came to be known in the West as Dragon Oath.
The fourth quarter represented a staggering 48% decrease year-over-year in "average active monthly s" in Changyou's PC games and a 12% decrease quarter-over-quarter, currently resting at 3.6 million s. The amount of "active paying s" in their PC games is now 1.2 million, an 8% decrease both year-over-year and quarter-over-quarter. The company attributes these losses to "the natural declining life cycle of older games." The year-over-year decrease in paying s was considered to be offset by the release of Steel Ocean and Warframe, the latter of which saw an increase in revenues in the fourth quarter.
Changyou's mobile games saw a 47% decrease in average active monthly s year-over-year and a 54% increase quarter-over-quarter, currently resting at 3.7 million s. Active paying s saw a 40% year-over-year decrease and a 50% quarter-over-quarter increase. The decrease is considered to be "a result of the natural life cycle of TLBB 3D" while the sudden increases at the end of the year are attributed to the release of new mobile games.
In total, the quarter landed at $162 million in revenues, a 25% year-over-year decrease and a 14% quarter-over-quarter decrease. Revenue from online games ed for $127 million of their revenues, a 31% decrease year-over-year and a 17% decrease quarter-over-quarter. This is once again attributed to "the natural decline in revenues of older games" and the sale of 7Road, ultimately leading to less web game income.
Despite these results, the company is optimistic. "2015 has been a year of re-focus for Changyou," said Changyou's Co-CEO Mr. Dewen Chen, "We rationalized our operations, drove up efficiencies and realigned our R&D efforts, which yielded a 2015 record revenue of US$762 million and a non-GAAP net income of US$228 million. The strategy we set forward is 'Big IP, Top Games and Mass Marketing', meaning we will only bring to market the top-level games that meet all of our new testing criteria and we will these top-level games with our best IP and marketing resources to ensure their success."
