Article Austrialian IT
ONE of Australia's biggest computer game developers, Auran Development, was placed into voluntary administration yesterday, despite recently securing multi-million dollar investments from the National Australia Bank and the federal Government.
The decision was made after poorer than expected sales of its online multi player game, Fury, which Auran has spent $15 million developing over the past three years.
In October, the NAB made a "seven-figure investment" to help market Fury internationally. The funding came after Auran secured $2 million in funding from the federal government's credit agency, the Export Finance and Insurance Corporation (EFIC).
Chief executive Tony Hilliem couldn't discuss whether the funding had been spent and said he would meet with both parties in the near future to discuss future arrangements.
NAB and EFIC could not be reached for comment.
Around 80 per cent of
Auran employees have lost their jobs.
Auran employed 70 staff, and between 15 and 20 people, including Mr Hilliem, are set to join Fury's licensee N3VR41L Publishing.
Mr Hilliem said some staff will form the core of a new development studio, which will be run by another Australian gaming company, but overall he expects that over 50 workers would receive redundancy entitlements.
He said a core team would be retained to continue developing Fury and also rail simulator, Trainz.
While Auran has sold 110,000 copies of the game globally, it was hoping to have double the sales by this stage, Mr Hilliem said, adding that "in hindsight, we got the pricing wrong".
"The sales in Australia met expectations but this wasn't the case for the rest of the world," he said.
Fury retails for approximately $50.
On a brighter note, Auran has attracted $US3 million in funding from China's CDC Games, and Mr Hilliem will be visiting its headquarters early next year to negotiate co-development deals to distribute Fury.
"This will enable the cash flow to fund the business, and I expect that within two years Auran will be back to its current size, but this time be hugely profitable."