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Kabam Cuts Back on Third-Party Publishing as Revenue Tops $400 Million

Third-party games did not succeed "at the volume we planned," Kabam's CEO said.

Kabam’s revenue for 2014 was $400 million, a new record for the company — but it’s scaling back some of its underperforming divisions.

In addition to transferring some of its “legacy” Web-based games like Kingdoms of Camelot and Dragons of Atlantis to another company, RockYou, a move that was first announced in December, the free-to-play gaming company said today that it would scale back its third-party publishing venture, launched in 2013. The notion behind that vertical was to share Kabam’s learnings about how to run free games as a service with studios looking to scale up.

“We have enjoyed some good successes with publishing, but not at the volume we planned,” Kabam CEO Kevin Chou said via a press release.

That leaves the company’s first-party mobile games, including movie-inspired hits like The Fast and the Furious and Marvel: Contest of Champions, in the spotlight.

Kabam has more than $150 million of available cash in the bank, the release said. Twelve of its games made more than $1 million per month in 2014.

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