Glu had their earnings call yesterday. Below is part of the transcript.
In September 2013, we launched our highly successful Deer Hunter 2014 game, which is now been installed over 150 million times. As we’ve mentioned on prior calls, Deer Hunter 2016 and other 2015 shooter releases have experienced muted installs in revenue by comparison. As a result of this trend, as well as our belief that only highly social games will drive meaningful revenue, we’ve reduced the volume of shooters on our roadmap.
As a final comment to our product pipeline, on our next earnings call we will provide an update on our racing label roadmap. At this time, I’ll say that we expect to meaningfully grow revenues for the genres starting in Q4 this year.
I shall now detail our progress towards improving the long-term profitability profile of Glu. Each year we have shaped our product portfolio to make studio investments according to where we believe the greatest returns lie. Between late 2010 and mid 2014 these were in the action shooter genre with titles such as Gun Bros, Contract Killer, Frontline Commando and Deer Hunter.
However, since mid 2014 we’ve seen a shift were by our strongest studio ROI has come from focusing on female gamers. We’ve rebalanced our internal studio resources accordingly. With our Tencent WeFire partnership underway, we've taken the opportunity to consolidate our internal shooter efforts in a single low-cost location.
Thus far in 2016, we've experienced unanticipated softness in several catalog titles, as well as the tale on our Kendall and Kylie game being weaker than anticipated. Last quarter I talked about our long-term plan of bringing fixed OpEx into line with our more predictable catalog revenue.
Doing so will ensure that new launches are all upside each year as opposed to requiring a fair level of success to cover annual fixed OpEx. As part of driving towards this objective by the end of 2017, we completed global restructuring program last month. Automation of various G&A functions is underway, as well as a 12 month drive to shift yet more fixed OpEx to lower cost locations.
The combination of our shooter label restructuring and its efficiency drive means we’ve eliminated circle 100 full-time rolls over the past five months. As a result of our actions, we anticipate that by mid-2017 Glu’s annual revenue run rate threshold for EBITDA profitability will be reduce the circuit $225 million. This assumes the business mix and hence gross margin profile similar to the present.
Our experience and track record working with celebrities now extends across a wide range of genres, from narrative games to shooters, sports, and time management. We believe we’re the best in the world that working with celebrities with large social audiences provide a permit marketing assets and contractual bear to entry for Glu.
We anticipate that the long-term future of our celebrity partnerships will increasingly combine game mechanics and exclusive audiovisual content in new and compelling formats.
Long story short, FPS games at Glue are dead and the focus is on celebrity ****. They have "reorganized" (meaning fired) many of the FPS development people.
It was fun while it lasted.
Common Sense is an ultra-rare superpower.