GigaMedia "will change course" following further losses
Software provider posts core net loss of $3.9m in first figures since president's departure.
GigaMedia CEO Yichin Lee has promised the company will “change course” to compete in the online gaming market, after announcing Q3 revenues of US$7.8m, down 12% quarter-over-quarter.
The 40% owner of Everest Poker said the planned termination of game box sales in Southeast Asia saw revenue drop to $1.5m from Q2’s takings of $2.3m, while revenues from FunTown, the company’s operations in Taiwan and Hong Kong were $6.3m, down from $6.5m in the second quarter.
Reacting to the results, Lee admitted that the company had to change its focus to accommodate the shift from PC to mobile games: “As a third-party publisher, we are at a competitive disadvantage in today’s environment where the risks for major games are higher than ever and speed and flexibility are critical. In sum, our strategy as a publisher is not working.”
Lee promised that from Q4 2011, the company will begin work on creating a “broader and deeper portfolio supported by specific development capabilities for different game genres” and start rolling out a mobile offering with the launch of a new Mahjong product for the iPhone and an updated iPad offering in 2012.