Swedish Game Developer Index 2017-2018 - Squarespace

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Swedish Game Developer Index 2017-2018 - Squarespace
Swedish Game Developer Index
2017-2018
Swedish Game Developer Index 2017-2018 - Squarespace
Second Edition
       Published by Swedish Games Industry
       Research, text & design: Jacob Kroon
          Cover Illustration: Anna Nilsson

    Dataspelsbranschen Swedish Games Industry
        Klara norra kyrkogata 31, Box 22307
               SE-104 22 Stockholm
            www.dataspelsbranschen.se

    Contact: jacob.kroon@dataspelsbranschen.se

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Swedish Game Developer Index 2017-2018 - Squarespace
Table of Contents

Summary                           4
Preface                           5
Revenue & Profit		                 8
Key Figures                       10
Number of Companies               14
Employment                        14
Gender Distribution               16
Employees & Revenue per Company   18
Biggest Companies                 20
Platforms                         22
Actual Consumer Sales Value       23
Game Developer Map                24
Globally                          26
The Nordic Industry               28
Future                            30
Copyright Infringement            34
Threats & Challenges              36
Conclusion                        39
Method                            39
Timeline                          40
Glossary                          42

                                  3
Swedish Game Developer Index 2017-2018 - Squarespace
Summary

The Game Developer Index analyses Swedish game             few decades, the video game business has grown
developers’ operations and international sector trends     from a hobby for enthusiasts to a global industry with
over a year period by compiling the companies’ annual      cultural and economic significance. The 2017 Game
accounts. Swedish game development is an export            Developer Index summarizes the Swedish companies’
business active in a highly globalized market. In a        last reported business year (2016). The report in brief:

                       Revenue increased to EUR 1.33 billion during 2016, doubling in the
                       space of three years

                       Most companies are profitable and the sector reports total profits for
                       the eighth year in a row

                       Jobs increased by 16 per cent, over 550 full time positions, to 4291
                       employees

                       Compound annual growth rate since 2006 is 35 per cent

                       Small and medium sized companies are behind 25 per cent of the
                       earnings and half of the number of employees

                       More than 70 new companies result in 282 active companies in total,
                       an increase by 19 per cent

                       Almost 10 per cent of the companies are working with VR in some
                       capacity

Game development is a growth industry with over half       Swedish game developers are characterized by
of the companies established post 2010. The games          their range and quality. Sweden has world-leading
are launched directly onto an international market,        developers within AAA, PC, mobile games, VR, digital
which also creates a global labour market. Factors         distribution and specialized subcontractors. The
pointing towards increased growth include: more focus      biggest challenges of the sector are indirect. They are
on regional clusters (with incubators, accelerators and    access to skills as well as laws and regulations around
education programmes), more serial entrepreneurs           digital markets. Many of which are currently out of kilter
starting game companies and the fact that we have not      with reality.
yet seen the full effects of the many big investments
and acquisitions over the past few years.

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Swedish Game Developer Index 2017-2018 - Squarespace
Preface
More Players Create Continued Growth for Swedish Games

The sensational growth of the last few years              This is one of the reasons why the game developers
has created an unusual situation for Swedish              themselves are changing. Most reflective is the sizable
game developers, one where the rest of the world          increase in the number of women active in game
expects perennial record-breaking progression. Few        companies. In 2016, the number increased by over
businesses, if any, have such growth or expectations.     20% compared to the previous year. The number of
But reporting the 2016 accounts of Swedish game           women employed is increasing 50% faster than it is
companies, we are pleased to present another record       for men, relatively speaking. The increase starts from
year. Growth was seven per cent, a number that            a low base and there is still a lot of work to do before
in most other circumstances would be seen a great         we reach a gender distribution anywhere near equal.
result, but for games it is rather modest in comparison   However, it is part of a bigger cultural change of what
with preceding years. Though a sales record was set,      video games are and can be. Variety and equality is
what constitutes modest growth for video games would      thus a question of competitiveness in a growing, global
elsewhere be viewed as a cause for celebration.           games market.

What lies behind the numbers? Simply put: there are       If the tendency towards growing numbers of new
many large companies that influence the key figures.      gamers is driven by accessibility and simplicity,
Mojang with Minecraft accounts for a large part of        then there are other trends that emphasize depth
the result. King and Candy Crush Saga generate a          and skill, namely virtual reality and esports. Esports
fifth of the overall revenues. But beyond these, there    is a competitive gaming discipline requiring lots of
are a substantial number of profitable and growing        practice. Since 2016, an esports qualification is offered
companies that are active in many different verticals:    at Sweden’s Strömbäck’s community college (no
PC Games, mobile games, consoles, VR, technology,         relation). Virtual Reality is something of a strength
services etc. The strength of the Swedish video game      in Sweden and there have been several high-profile
boom is its remarkable range.                             foreign investments in Swedish companies. Nearly 10
                                                          per cent of the companies in the report are developing
The global market carries on growing, whilst the          VR games in one way or another.
Swedish industry continues to grow even faster.
Swedish games stand for a significant part of the of      Lastly, a raft of promising developments in the last few
the overall global sales. For instance, The Guardian      years has led to further stock market activity. Several
recently named the eleven best games at Gamescom          companies have made public offerings (IPOs). Many
2017 (the world’s biggest gaming trade fair) - four of    of these have buoyant share prices; outpacing the
these were developed in Sweden.                           stock market and faring better than incumbent video
                                                          game businesses listed in other parts of the world.
Video games are now entertainment for everyone.           This means small investors can share in the progress.
Thanks to the growing number of genres, styles,           Several established financial institutions and funds
hardware, delivery methods and more, there is an          have also started to increase their holdings in video
abundance to choose from - even for those who may         game companies. In other words, the companies’
not consider themselves gamers. Worldwide there are       access to funding and capital is moving in the right
more players of all ages. This means that the days        direction.
when game developers created games for players
who were like themselves, with the same frames of         The only thing that can seemingly threaten continued
reference and same relationship with gaming, are          growth and new records is the availability of skills and
long gone. Today, game developers make games for          competency and the companies’ ability to create new
players from all kinds of backgrounds, with all kinds     games.
of personal tastes and preferences and in all kinds of
cultural contexts. There is a fundamental difference      Per Strömbäck
between developing a game intended for someone like       Spokesperson, Swedish Games Industry
yourself and for someone who is completely different.

                                                                                                                5
Swedish Game Developer Index 2017-2018 - Squarespace
Revenue

    EUR Million

                                                   1325
                                          1233.3
                                                   +7%
                                          +25%
                                  987.9

                                  +43%
                          691.2
                          +76%
                  392.3
                  +60%

                  2012    2013    2014    2015     2016

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Swedish Game Developer Index 2017-2018 - Squarespace
Employees

 Number of Employees

                                            4291

                                     3709   +16%

                              3117   +19%

                       2534   +23%

           1967        +29%

           +30%

           2012        2013   2014   2015   2016

                                                   7
Swedish Game Developer Index 2017-2018 - Squarespace
Revenue & Profit

As the leading contemporary cultural
expression, Swedish game development is
becoming a world-renowned export

With growth of seven per cent to       Although the production pattern for     solution Realms, as well as various
EUR 1.32 billion, 2016 was yet         AAA development is less dominant        brand tie-ins with companies such
another strong year for Swedish        today, game development is still a      as Lego, Jinx, Mattel and Egmont.
games. Against global competition,     cyclical business in many aspects.      The United Nations project UN
they have successfully gained          Regardless of the industry’s            Habitat is also in full swing.
market share, attracted skills         transition from products to services,
and competence and not least           several companies secretly work         King increased its stance as one
created gaming experiences for         on a game for several years and         of the world’s leading mobile
several hundred million users          then launch it on the market. Some      game developers, with two of the
the world over. With almost 80         years there a lot of published          ten most profitable games in the
new companies and 558 new              games, other years there are fewer.     American app stores top charts
employees, the sector is witnessing    If Sweden had a smaller number of       for the fifteenth consecutive
its biggest ever number of newly       developers this tendency would          quarter. Since Activision Blizzard
established companies. In a world      have shown in the numbers. As           completed its acquisition of the
where Swedish games reach every        it is, it is hardly noticeable, since   company in February 2016, it is
tenth person* on the planet (based     we have sufficient studios with a       worth noting that the financial
on sales and download figures          variety of productions underway         statements quoted in this report
for games developed in Sweden),        and the release window is always        follow the reporting principles
Swedish game makers have               open. Here is a small selection of      of international groups and can
effectively nurtured and refined       the companies’ activities in 2016:      therefore not be directly compared
their relationship with the users.                                             to the statements of previous years.
With total profits of over EUR 800     As usual, Mojang is behind a            King has 314 million monthly active
million, the industry has now been     large share of the revenues             users (MAU) with a continuously
profitable for the last eight years.   (approximately 30 per cent). With       growing engagement rate.
As the leading contemporary            last year’s 18-month revenues of
cultural    expression,     Swedish    EUR 452 million revised to the          DICE grew 28 per cent with 80 new
game development is becoming           2015 calendar figures of EUR 389        employees. The studio released
a world-renowned cultural export.      million, the company’s revenues         the blockbuster game Star Wars
The industry’s compound annual         increased to EUR 401 million in         Battlefront and Mirror’s Edge:
growth rate since 2006 is 35 per       2016. The Minecraft developer has       Catalyst in 2016. Likewise, there
cent.                                  continued working on the server         were additions to the DICE family in

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Swedish Game Developer Index 2017-2018 - Squarespace
The Hunter: Call of the Wild, Avalanche Studios

          Sweden. The sister company Ghost     2019. The company’s first in-house     the opportunity to use the shares
          Games were already developing        game since 2007, The Division, has     as a purchase instrument. Paradox
          racing games in Gothenburg and       performed well and helped the firm     traded at 54 per cent above the
          now they have been joined by the     grow by 49 per cent. There are also    listed price before the end of the
          Uppsala company Uprise, which        plans to take the game to the silver   year.
          develops support functions to        screen.
          games belonging to the EA group.                                            Stock-traded Starbreeze reports
          By the third quarter in 2016, Star   Paradox Interactive had a very         excellent growth to over EUR 53
          Wars Battlefront had sold over 13    busy year, with an IPO and several     million. The company has also
          million copies.                      marque game releases – including       announced it is to collaborate with
                                               titles from other developers. Each     Korean Smilegate to develop a
          Avalanche Studios released two       month, over one and a half million     western version of Crossfire – one
          AAA games in the past year,          people played one of the company’s     of the most popular PC games
          including a cooperation with         games. The space explorer game         in the world. In 2016, Starbreeze
          international giants Square Enix     Stellaris sold 200,000 copies on       bought the rights to the Payday
          and Warner Bros. respectively.       the day of release and the flagship    series, acquired Orange Grove
          They also initiated an expansion     title Europa Universalis IV has sold   Media, Indian Dhruva Interactive,
          for Just Cause 3 and an new          more than a million copies to date.    a French VR company and the
          version of the hunting simulator     Paradox is listed as the number        Belgian VFX studio Nozon. It
          The Hunter.                          one medium-sized company on            commenced collaborations with
                                               the rating site Metacritic. It is      Lionsgate and Tobii, and organized
          Malmö-based developer Massive        behind no less than five of the        PaydayCon - a trade fair for the
          Entertainment greatly consolidated   top hundred selling games on the       Payday series. As a publisher,
          their position as the biggest        distribution platform Steam. Two of    Starbreeze has launched the
          game developer in southern           their original titles, downloadable    horror game Dead by Daylight,
          Scandinavia, by acquiring real       material and the successful            which proved an enormous
          estate property ‘Eden’ in central    publishing of other developers’        success and contributed a third of
          Malmö. The investment was a clear    titles contributed to the strongest    the company’s earnings in 2016.
          sign that the owner Ubisoft has a    year ever for the company. The
          lot of confidence in the company.    IPO has given Paradox better           In August 2016, Nordic Games
          The relocation will take place in    access to the capital markets and      changed name to THQ Nordic. With

                                                                                                                      9
Swedish Game Developer Index 2017-2018 - Squarespace
Key Figures

2012-2016                     2012            2013                2014            2015               2016
n.o Companies                   145 (+24%)          170 (+17%)      213 (25+%)       236 (+11%)        282 (+19%)
Revenue EUR M*                392.3 (+60%)        691.2 (+76%)    987.9 (+43%) 1233.3 (+25%)           1325 (+7%)
Underlying Growth EUR M**     120.2 (+23%)        165.8 (+38%)    221.4 (+34%)     324.6 (+47%)      419.9 (+29%)
Profit EUR M                  35.7 (+164%)       262.2 (+635%)    354.6 (35+%)     520.7 (+47%)      871.6 (+67%)
Employees                      1967 (+30%)         2534 (+29%)     3117 (+23%)      3709 (+19%)       4291 (+16%)
Men                              1674 (85%)          2128 (84%)     2601 (83%)       3060 (82%)        3491 (81%)
Women                             293 (15%)           405 (16%)      516 (17%)           651 (18%)      800 (19%)

2007-2011                     2007            2008                2009            2010               2011
n.o Companies                    91 (+34%)         104 (+14%)        101 (-3%)        106 (+5%)        117 (+10%)
Revenue EUR M*                  101 (+49%)         122 (+21%)       102 (-17%)     124.7 (+22%)      244.7 (+96%)
Underlying Growth EUR M**      41.4 (+36%)           43.7 (+6%)     38.8 (-11%)     49.9 (+29%)         98 (+96%)
Profit EUR M                    -1.6 (+33%)      -19.9 (-1121%)    3.9 (+120%)       1.58 (-59%)     13.5 (+747%)
Employees                      1153 (+42%)        1353 (+17%)      1102 (-19%)       1203 (+9%)       1512 (+26%)
Men                             1034 (90%)          1217 (90%)       993 (90%)       1082 (90%)        1300 (86%)
Women                             119 (10%)          135 (10%)       109 (10%)        121 (10%)         212 (14%)

*See page 39 for notes on currency conversion.

**Underlying growth is found by removing the five biggest companies for each individual year.
The compound annual growth rate for the industry’s underlying growth is 30 per cent.

10
offices in Karlstad and Vienna, the company controlled    games market, launching ComPet, in addition to their
four development studios at the end of the year; two      online game Entropia Universe. Additionally, MindArk
in Sweden, one in Germany and one in the United           grew by 34 per cent to EUR 5.8 million.
States. In November, the company were successfully
listed on the stock market. Notably, THQ has continued    Rovio in Stockholm has created a sensational long-
success with physical distribution, which corresponds     tail success with Angry Birds 2. From initial strong
to 51 per cent of the group earnings. THQ Nordic grew     download figures to an ongoing success with a stream
by 42 per cent during the 12-month period.                of new material released and new game modes
                                                          introduced. The game has developed from a strictly
2016 was a crucial year for Sunlock Studios with the      casual game to one with more core elements, requiring
launch of the arena game Battlerite as a so-called        more dedication. Angry Birds 2 is a good example of
‘early access’ release in September. The game             the increasing lifecycle of mobile games.
exceeded expectations both critically and sales-wise.
The income from the advance release has secured           Robtop Games, the developers behind Geometry
further development of the game to a full launch at the   Dash, is among the successful small stand-out
end of 2017. The company increased its revenues by        companies. Another company with a stellar repertoire
some 800 per cent to nearly EUR 6 million.                is Axolot Games, behind Steam and YouTube favourite
                                                          Scrap Mechanic. Mobile games developer Apprope
With several successful ventures on board, Arrowhead      has had a colossal triumph with games such as
grew by 23 per cent. The company was working on           WordBubbles and WordWhizzle Search. The games
secret projects in 2016 and preparing for a move to       have been topping the American charts with over 55
new Stockholm offices.                                    million downloads. The company more than doubled
                                                          its revenues to close to EUR 9.5 million.
With development offices in both Stockholm and the
United Kingdom, the mobile games designer MAG             Palringo, previously Free Lunch Design, shut-down
Interactive grew by over 50 per cent to EUR 30 million.   in 2016. Many of the key team members – among
In addition to Ruzzle Adventure, the company has          them the founder Magnus Alm – moved on to create
developed a follow-up to the word game Wordbrain.         the mobile game studio Lavapotion, also based in
                                                          Gothenburg.
A Sweet Studio has grown and recruited several
people for several projects. The company more than        The Josef Fares led game studio Hazelight tripled
doubled its revenues to EUR 644 000.                      their revenues to EUR 2.53 million. This was a clear
                                                          indication that the work on the company’s then
Hello There in Gothenburg have worked on their own        unannounced project had come a long way, partly
mobile games, but also on VR projects and console         with support from the EA Originals programme for
games. They previously collaborated with brands such      smaller developers, led by Swedish executive Patrick
as Kung Fury and the artist Avicii. Gothenburg is also    Söderlund.
home to MindArk who have branched out to the mobile

                                                                                                             11
Growth is driven by direct income from
real consumers in a growing global
market
To signal that the company now works with a broader      are valuable. Looking at the history of Swedish game
product portfolio beyond the web game Stardoll, they     development, the success has been sown with a
changed name to Glorious Games Group in 2016.            red thread between start-ups, indie developers,
Glorious Games increasingly focus on mobile games        small, medium and large companies. Swedish game
and the title Stylista started to generate income in     developers make games of all genres and for all
September. The decreased popularity of browser           platforms. There is a robust synergy that creates
games has negatively affected Stardoll.com, but the      the right conditions for small developers to grow. A
company sees a bright future in the growth area of       connection between incubators, education, a do-it-
mobile games.                                            yourself attitude and global goals. In Sweden, some
                                                         of the world’s largest developers and some of the
Star Stable Entertainment’s revenues increased by        foremost indie developers can be found, and a growing
almost 50 per cent and growth continues in 2017. With    number of companies in between.
56 per cent female staff, the company has a near
unique position in the industry.                         Growth is driven by direct income from real consumers
                                                         in a growing global market, not speculation on future
Gothenburg-based Image & Form’s robotic escapades        profits. On the contrary, the level of venture capital is
in SteamWorld Heist were very well received by both      low relative to the companies’ performance. Games are
critics and players on every platform that the game      adaptable to modern technology and new platforms
entered. The company also launched its first physical    and not even times of recession or financial crises
game release – Dig Collection for Wii U and PS4. It      has had any major effect on growth. Projections in the
also released the DLC-package The Outsider for           gaming sector are realistic, often underestimated.
SteamWorld Heist, one of the highest ranked games
at MetaCritic for PS Vita and 3DS. The company’s         on last year’s numbers
revenue grew by over 100 per cent. Gothenburg            Due to an extended fiscal year, primarily for Mojang
neighbours Zoink doubled their number of employees       but also Starbreeze (18 months), the 2015 financial
to 18 staff members and worked on the game Fe in         statement made a bigger impression on last year’s
collaboration with EA.                                   report than what the real revenues represented. For this
                                                         reason, revenues of EUR 1.3 billion has been adjusted
The Swedish games industry is represented from north     down to EUR 1.23 billion, to reflect the companies’
to south and among the northernmost companies is         calendar year. Mojang’s revenues for the calendar year
Umeå-based Zordix. In addition to motor sports games     2015 were EUR 389 millon. A similar adjustment has
for consoles and PC, the company also works on           also been made to Mojang’s revenues in 2014, where
developing interactive safety education for the mining   revenues were revised to EUR 272 million.
industry.

Notwithstanding several large and successful
companies, the Swedish video game boom is built
on reciprocity where all companies and individuals

12
Immortal: Unchained, Toadman Interactive

                                           13

SteamWorld Dig 2, Image & Form
Number of Companies
Like the growing number of employees, the number of        decreased their operations over time and many are still
newly established companies proves that the industry       dormant. Other companies not included in this year’s
continues to expand. We have never had as many             report are typically app developers or diverse types of
start-ups than now. This is largely thanks to successful   media agencies that tend to increase or decrease their
incubators whose concepts have spread to other parts       involvement in game-related activities ad hoc. Ustwo
of the country, but also due to a growing number of        is an example of this type of company, developing
industry veterans starting up their own studios after      popular games such as Monument Valley despite it not
long careers with the best game developers in Sweden.      being its core business. One of the more well-known
Another contributing factor is the founding of numerous    companies to go bankrupt was Goo Technologies.
VR operations. A VR experience is not necessarily a
game but the companies included in the report are          There is also a significant and growing number of
deemed to have enough interactive elements in their        trading companies and sole proprietorships developing
products to be such. New VR studios this year include      games. In 2016, there were 121 of these. They are
Neat Corporation, Logtown Studios, Svrvive, Fast           important for the industry but for accounting reasons
Travel Games and Enterspace.                               cannot be included in this report. One example is Elden
                                                           Pixels which released the critically acclaimed Alwa’s
Some 20 companies have left the industry. Many             Awakening.
are in a process of slow dissolution or a change of
direction. Companies that have been liquidated have

Employees
The number of employees increased by 15 per cent,          counted. Many act as freelance consultants to game
or 558 full time positions. The number of jobs is in       companies and are not listed as employees. Taking
many ways as important a parameter as increased            these undisclosed numbers into account the real
earnings and the industry’s steadfast expansion is         figure is likely to be 5-15 per cent higher. This gives
highly evident here. Newly established companies           an estimated 5,000 currently involved in the Swedish
have created more than 50 new jobs. The number of          games industry.
employees is calculated using the average number of
full-time employees in the companies’ annual accounts.     Another 400-500 new employees are estimated to be
However, many game development workers are not             entering the industry in both 2017 and 2018.

14
15

Biomutant, Experiment 101 (published by THQ Nordic)
Gender Distribution

The number of women working in the industry                     and an opportunity in attracting more women to the
increased by 23 per cent, compared with 14 per cent             industry is that many tend to have cross-industry roles
for men. The total share increased to roughly 19 per            to a higher degree than their male colleagues.
cent.
                                                                Still, it is a rapidly developing industry; the number of
Factors hindering a greater increase can be traced              women working in the industry today is higher than the
to the industry’s general skills shortage and the fact          number of men that worked in the industry ten years
that many companies recruit internationally to fill             ago.
vacancies. Even fewer women in the global industry
makes an equal recruitment base more of a challenge             about diversi
and long processing times for work permits also deter           Diversi was created in 2013 as an initiative to
and hamper recruitment from overseas.                           highlight and strengthen the diversity in Swedish
                                                                game development. The goal is to make more people
In addition to efforts to attract more women to game            feel at home in gaming, in communities, education
development and game companies, the drive for equal             and companies. Games are not just for the few, they
opportunities is just as important in the game industry         are an important part of society – creatively, socially,
as in the rest of society. It is essential in order to secure   pedagogically and economically. Equality is important
the best skills and to widen the target groups of the           to allow the industry to grow and to further develop.
games. Women in game development work mainly in                 More information about the initiative can be found
medium-sized and large companies. A challenge is                at diversi.nu. Swedish Games Industry supports
to have smaller studios and start-ups include women             many other initiatives to do with diversity, equality
from the outset, and have more women establish                  and inclusiveness; several have gained international
companies. Today, the bigger mobile game companies              attention.
employ the highest number of women. A challenge

16
Number of Women
                                       800

                                       +23%
                                651
                                +26%
                         516
                         +27%
                  405
                  +38%
          293
         +39%

          2012    2013   2014   2015   2016

                                              17
Employees & Revenue per Company
This compilation is made according to the EU definitions of small and medium-sized companies.

Micro: Fewer than 10 employees or maximum revenues of EUR 2 million
Small: Between 10 and 49 employees and revenues not exceeding EUR 10 million
Medium Between 50 and 249 employees and revenues not exceeding EUR 50 million
Large: Companies that have greater revenues or number of employees than a medium-sized company

                                                                    MICRO
                                                                    12%

                    LARGE
                    53%

                                                                                        SMALL
                                                                                        18%

                                          Employees per Company

                                                                                 MEDIUM
                                                                                 17%

18
To qualify as a certain type of company it is sufficient to fulfil just one of the criteria. Mojang, for example, is defined
as a large company because of its revenues, even if the number of employees matches that of a small company.
Ubisoft Massive does not quite reach the revenues of a large company, but counts as one because of the high
number of staff. Since 2015, Starbreeze has qualified as a large company and Starstable Entertainment, Stillfront
and Robtop Games as medium-sized. A widespread entrepreneurship also contributes many micro companies,
with initially small earnings, that are vital for the industry in the long term. See page 24-25 for a geographical
distribution of the companies.

                                                             MICRO
                                                             4%
                                                                            SMALL
                                                                            7%

                      LARGE
                      75%

                                                                                                  MEDIUM
                                                                                                  14%

                                                Revenue per Company

                                                                                                                          19
A Way Out, Hazelight

Biggest Companies
This year’s list includes ten companies in each category for the first time. It is obvious that the industry is not just
driven by the larger companies as more than 60 companies report revenues exceeding EUR 1 million. Discounting
the five largest companies, the industry grew by 29 per cent.

COMPANY                        Revenue M EUR                           COMPANY                        Employees
1. Mojang                                     401                      1. DICE                                      640
2. King                                     255.5                      2. King                                      584
3. DICE                                     124.3                      3. Massive Entertainment                     377
4. Paradox Interactive                         69                      4. G5 Entertainment                          284
5. Starbreeze                                55.2                      5. Avalanche Studios                         216
6. G5 Entertainment                          54.6                      6. Paradox Interactive                       194
7. THQ Nordic                                36.6                      7. Starbreeze                                151
8. Massive Entertainment                     35.4                      8. MachineGames                              100
9. MAG Interactive                           29.9                      9. Stillfront                                 96
10. Avalanche Studios                        26.2                      10. THQ Nordic                                68

20
Fe, Zoink

                Star Wars Battlefront 2, DICE

                                  21

GoNNER, Art in Heart (published by Raw Fury)
Platforms

One of many features of Swedish          dependent on hardware platforms      The diagram below gives an
game development is its wide             as it once was. The launch of        overview of the types of platforms
range. It might seem obvious             new game consoles in 2013-2014       developers are working with.
to focus on the biggest formats          had a relatively minor impact on     A developer can appear in two
(PC, console, mobile), but few           Swedish game developers. Each        or more categories if they have
countries have companies winning         one simply became another digital    focussed on several formats.
in all segments. Sweden is               store window for an audience with    Information about the platforms
world-leading on all commercial          money to spend. Many games can       the companies work on has been
platforms, and it looks good for the     be efficiently converted between     collected principally from home
future promise of VR. A number of        different formats and it is mostly   pages and annual reports. The
Swedish developers have adopted          AAA games that have been             share of companies that work as
the VR platform and secured              dependent on a strong console        consultants is likely to be much
investments along the way.               market. The question is where the    higher than the 12 per cent stated
                                         upcoming audiences are found         here.
Whilst range is one of the               today, and the answer is usually
cornerstones of the Swedish video        more than one.
game boom, the industry is not as

Share of Companies

     47%                               47%

                     12%                                              12%           10%             9%
                                                       5%

                                                                                  Tools &
      PC           Console             Mobile      Simulation     Consultation   Middleware         VR

22
Actual Consumer Sales Value

When it comes to Swedish game         The other type is represented         those The Division create just by
developers, there are primarily two   by Paradox Interactive and            looking at the game developer’s
kinds of large companies. One         Starbreeze, who report most           annual report, because income is
type is DICE (EA) and Massive         of their sales in the Swedish         apportioned among the operators
(Ubisoft). Their games have           companies. One of the biggest         in the supply chain, and is to some
high retail revenues, but belong      challenges in illustrating the        extent accounted for in the foreign
to a value chain with several         enormous success of Swedish           parent company. If we loosely
middlemen (retailers, wholesalers,    game companies is showing the         calculate the proceeds at the
distributors) and, moreover, are      actual income from a company’s        consumer stage for a theoretical
part of international groups with     sales. In some cases, most of a       example (presupposing that 10
parent companies located abroad.      company’s activities is included      million people bought the game,
The games from these developers       in the Swedish annual accounts.       without including other income
earn much larger sums than those      Mojang is a good example of           such as DLC) that would be ten
appearing in the annual accounts      that. However, it is more difficult   times an average price of EUR 50
that form the basis of this study.    to distinguish revenues for games     or roughly EUR 500 million total.
                                      such as Star Wars Battlefront or

                                                                             Star Stable, Star Stable Entertainment

                                                                                                            23
Game Developer Map                                                                                                                                LULEÅ
                                                                                                                                                  Virtual Light VR

                                                                                                                                                       PITEÅ
                                                                                                                                                       Digital Awakening

                                                                                                                                                           SKELLEFTEÅ
                                                                                                                                                           Frostspektrum Interactive
                                                                                                                                                           Gold Town Games
                                                                                                                                                           Grand Pike
                                                                                                                                                           Innan
SKÖVDE                                                                                                                                                     Lundmark & Marklund
Babloon Studios                                                                                                                                            North Kingdom
Coffee Stain Studios                                                                                                                                       Time Stop Interactive
Coilworks                                                                                                                                                  Triolith Entertainment
DoubleMoose Games                                                                                                                                          Twoorb Studios
Guru Games
Hörberg Productions
I C YOU                                                                                                                                              UMEÅ
Flamebait                                                                                                                                            Cassius Creative
Lone Hero Studios                                                                                                                                    Coldwood Interactive
Ludosity                                                                                                                                             Level Eight
Ludosity Learning                                                                                                                                    Oryx Simulations
Mostly Harmless Games                                                                                                                                Paradox Arctic
Palindrome Interactive                                                                                                                               Turborilla
Pieces Interactive                                                                                                            SUNDSVALL              Zordix
Piktiv                                                                                                                        AtomicElbow
PocApp Studios                                                                                                                Corncrow Games
Rocket Hammer                                                                                                                 Konunger Games
Sector3 Studios
Solutions Skövde
Stunlock Studios
Tarhead Studio                         KÖPING
Thundersword Games                     LS Entertainment                                                              FALUN                        Gumi
                                                                                                                     Adit Studios                 Kolesterol Cät Interactive
                                                                                                                     Deadghost Interactive        Megafront
                                                                                                                     Flarie                       Tenstar
GOTHENBURG                                     ÖREBRO
1337 Game Design                               Stormbound
8 Dudes in a Garage                                                                                         BORLÄNGE              HEDEMORA
Bulbsort                                                                                                    Communisport          Killmonday Games
Carry Castle             KARLSTAD                                                                           Zoikum Games
Craft Animations                                                                                                                  UPPSALA                       MachineGames Sweden
                         Mirage Game Studios
Creative AI Nordic                                                                                                                Aegik                         Night Node
                         Nuttery Entertainment
Devkittens                                                                                                                        Calm Island Sweden            Pikkotekk
                         THQ Nordic
Dreamon Studios                                                                                                                   Disir Productions             Pixel Grinder
Elden Pixels                                                                                                                      Doctor Entertainment          Quixel
Epos Game Studios                      ALINGSÅS                                                                                   Game-Hosting GH               Teotl Studios
Erik Svedäng                                                                                                                      Gaming Corps                  Uprise

                                                                                                     *
                                       Qiiwi                                                                   NYKÖPING
Free Lunch Design                                                                                                                 Hansoft                       Yemsoft
                                                                                                               Sysiac
Ghost Games                                                                                                                       Immortal Games                Yoger
Hello There                   TROLLHÄTTAN
Image & Form International Easy Trigger                                                                                               LINKÖPING
Itatake                       Friendbase                                                                                              Chillbro Studios               Rampant Pixels
IUS Innovation                                                                                                                        Cortopia                       Simplygon
Kirikoro Studios                                                                                                                      Incredible Concepts of         Stillfront Group
Lavapotion                                                                                                                            Sweden                         Stillfront Online Games
Legendo Entertainment                                                                                                                 Lifee                          Stylaero
MindArk                                                                                                                               Power Challenge
Mobile Storytelling         ÅTVIDABERG
Nornware                    Martin Magni                                                                                    NORRKÖPING
Not My Jeans                                                                                                                Dimfrost
Outbreak Studios               ALVESTA                                                                                      Goes International
Pathos Interactive             Wadonk                                                                                       Millenway
Pax6 Games                                                                                                         VISBY
Retroid Interactive                                                                                                Eat Create Sleep
Räven                                                                                              MOTALA          Freshly Squeezed
Senri                                                                                              Code Club       Meow Entertainment
SkyGoblin                                                                                                          Pixel Ferrets
YCJY                                                                                                               Storm Potion
Zoink                                                                                                              Three Gates
                      HELSINGBORG                                                           KARLSKRONA
                      Localize Direct                                                       Fragnet Networks
                      Monsuta
                      Odd Comet                                                     RONNEBY
                      Pixelbite                                                     Activout
                                                                                    Nodbrim Interactive
MALMÖ
Ayeware                         Midnight Hub
                                Nopalito Studios                       KARLSHAMN
Deadtoast Entertainment
Divine Robot                    Ozma Speldesign                        Coastalbyte                        Noumenon Games
ExtraLives                      Paradox Malmö                          Fishmoose Interactive              Prasius Entertainment
Frictional Games                Planeto                                Forgotten Key                      Redgrim
Frogsong Studios                Polyregular Studios                    Gatling Goat Studios               Station Interactive
Grapefrukt                      Redikod                                Levall Games                       Stormhatt Studios
Illusion Labs                   Sharkmob                               Nemoria Entertainment              Whale on the Moon
Imperial Games Studio           Simogo                      LUND
King Malmö                      Star Vault                  Illwinter Game Design
Leripa                          Swedish Game Development    Pastille
Massive Entertainment           Tarsier Studios
Mediocre                        The Sleeping Machine
REGION                   Employees                       % of Total                        Companies                        % of Total
Stockholm                                       2596                               72                             123                              44
Malmö                                             551                              15                                  22                            8
Gothenburg                                        287                                8                                 29                          10
Uppsala                                           233                                6                                 16                            6
Skövde                                            131                                4                                 19                            7

Above is a table of the biggest regions ranked by
number of employees and number of companies. The
table follows the sum of the percentages and does not
consider the revenues of the companies. Stockholm
consists of Greater Stockholm and neighbouring regions.
Although most of the employees are based in the
capital, there are significantly more companies outside
the city. Some Stockholm companies like King, Paradox

                                                                                                                                                         *
Interactive and DICE have offices in several parts of the
country.

Companies in italics are not limited or have not yet
published their first accounts and are therefore not
officially included in the calculations of the report.

*STOCKHOLM                    Crackshell                     Grindstone Interactive          Mojang Synergies                  Snowprint Studios
2Play Studios                 Daikon Media                   Gro Play Digital                Morgondag                         Spelagon
Advrty                        Deadbreed                      Happi Studios                   Mutate                            Spelkraft Sthlm
A Small Game                  Defold                         Happy Graveyard Productions     Neat Corporation                  Spelkultur i Sverige
A Sweet Studio                DICE                           Happy L-Lord                    Nekomata Games                    Star Stable Entertainment
Ace Maddox                    Diffident Games                Hatrabbit                       Neuston                           Starbreeze
Apprope                       DorDor                         Hazelight Studios               Nialbe                            Stockholm App Lab
Aptitide                      Ekvall Games                   iGotcha                         Nuday Games                       Strange Quest
Arcticmill                    Elias Software                 Imagination Studios             Oxeye Game Studio                 Stringent Ljud
Arrowhead Game Studios        Enterspace                     IMGNRY International            P Studios                         Svantech Studios
Avalanche Studios             Expansive Worlds               Interactive Productline         Paradox Interactive               Svrvive
Axolot Games                  Experiment 101                 Isbit Games                     Peppy Pals                        Talawa Games
Bambino Games                 Fablebit                       Jajdo                           Photon Forge                      Tealbit
Beadhead Games                Fall Damage                    Kaludoscope                     Pixel Tales                       Team Psykskallar
Bitzum                        Fast Travel Games              KEP Games                       Pixeldiet Entertainment           That Brain
Blackfox Studios              Fatshark                       King                            Polarbit                          The Outsiders
Black Studios                 FEO Media                      KJ Interactive                  Poppermost Productions            Tiger & Kiwi
Blackbeard                    Filimundus                     LandFall Games                  Quel Solaar                       Toadman Interactive
Bodbacka:Boom                 Foxglove Studios               LeadTurn Gaming                 Quizye                            Toca Boca
BoldArc                       Frojo Apps                     Light & Dark Arts               Raketspel                         Tomorroworld
Brain Harbour                 Frosty Elk                     Like a Boss Games               Raw Fury                          TwifySoft
Bridgeside                    Fula fisken                    Lionbite                        Really Interactive                Unity Technologies Sweden
Bublar                        Funrock Development            Liquid Media                    Resolution Games                  Whirlybird
Casual Games FK               G5 Entertainment               Logtown Studios                 Right Nice Games                  Villa Gorilla
Claimony                      Gleechi                        MAG Interactive                 Rigid-Soft Studios                Vinternatt Studio
Clifftop Games                Glorious Games                 Midjiwan                        Robtop Games                      Visiontrick media
Codarica                      Gone North Games               Might and Delight               Rovio Sweden                      VisualDreams
Collecting Smiles             Good Learning                  Mimerse                         SimWay                            Warpzone Studios
Commited Gaming Thule         Good Night Brave Warrior       Mojang                          Skeleton Crew

                                                                                                                                                           25
Globally

The global game industry is             mobile                               measures, in stark contrast with
growing steadily. There are now         In June 2017, iPhone celebrated      the EU and its Digital Single Market
over 2.2 billion players worldwide      its tenth anniversary. It was the    project. It is also difficult for Western
with consumer spending growing          catalyst of the smartphone era       companies to publish games in
by 7.8 per cent to USD 108 billion      and an important milestone in the    China without cooperating with one
in 2017 (source: Newzoo). That          explosive development of mobile      of the country’s internet giants.
equals a 56 per cent growth figure      gaming. Today, two in every three
in the last five years. With a strong   people in the world owns a mobile    China is a huge market for PC
predominance of digital distribution    phone and 80 per cent of the         games, taking 51 per cent of the
in some of the bigger regions, its      earnings from apps is from games.    total share. The sales platform
share is now 87 per cent of the         Although the market is signified     Steam reports that no less than 17
market. The mobile segment is           by a horde of game releases that     per cent of its earnings come from
growing the most and represents         never reach profitability, it also   China, Japan and South Korea.
42 per cent of the total market.        transpires that mobile games have    An enormous leap compared to
The largest single market is China,     very long lifespans; contrary to     previous years, not least because
with a quarter of the world’s games     what many experts forecasted. In     the total earnings of the platform
consumption, while East Asia            the top ten highest earning mobile   continue to rise.
boasts nearly half.                     games of 2017, over half were
                                        released several years previously.   sweden
Growth is supported by several                                               Sweden has been voted among
emerging markets; mainly China          Despite the segment’s robust         the best European game developer
but also Eastern Europe, South          growth, it has very little overlap   nations for several years running.
America and the Middle East.            with PC. It is still marginal and    When Steam, the world’s biggest
More smartphone users sees more         primarily relates to browser-based   market place for digitally distributed
people discover games, and new          social games, as those games are     PC games, introduced awards for
consoles from Nintendo, Microsoft       increasingly launched solely for     the best games sold through the
and Sony nurture this ever-popular      mobiles.                             platform, 11 out of 100 games had
core segment. Analysts DFC                                                   a Swedish connection. Nintendo
Intelligence arrive at a similar        china                                launched its console Switch in
conclusion, forecasting sales of        Chinese gamers seem to be            March 2017, a hybrid console that
USD 102 billion, based on growth        the key to real global success,      can be played both stationary
of 8 per cent.                          which titles like Rocket League,     and on-the-go. When the famous
                                        Overwatch and Minecraft have         Japanese company produced a
Game companies are in many              shown. At the same time, an          trailer showing the upcoming indie
ways unique amongst media and           increased offensive from Chinese     games on the platform, nearly a
entertainment industries. Unlike        publishers to launch their games     third of those were developed or
other industries, it is more reliant    in the West is to be expected,       published by Swedish companies.
on direct earnings rather than          although that is likely to remain    Amongst others, Flipping Death
advertising, and when media             a tough sell. A more successful      by Zoink, SteamWorld Dig 2 by
companies struggle to create            strategy for Chinese companies       Image & Form and GoNNER by
interactive components in their         seems to be to approach Western      Art in Heart (published by Raw
products, it is the very backbone of    players through acquisitions and     Fury). When IGN listed the 11 most
the game industry. It gives gaming      investments in Western game          promising titles of the E3 trade fair,
a unique position and a head start      companies. China also stands out     three were developed in Sweden.
in creating and harnessing future       as a region of hard protectionist
innovations and paradigm shifts.

26
In 2017, three Swedish games received prizes at IMGA,       As the selection only includes listed companies,
the world’s biggest mobile games awards. These              big private companies like Valve are missing. This
accolades are fast becoming the norm for Swedish            could also be a reason why fewer out-and-out game
games. When IMGA, IGF, BAFTA, DICE Awards and               companies can be found in the list.
other renowned award ceremonies nominate and
award winners, Swedish games are always present.            trends
Considering the country’s performance, both in terms        Today’s games often offer three things: the
of number of citizens and the size of the local industry,   opportunity to play, create and view. A clear trend that
Sweden’s achievements are almost incomparable.              has developed over the last few years contains a new
More than ten AAA games were developed in 2016 and          group of game consumers – the growing legions of
things continue in the same vein.                           games enthusiasts. An enthusiast likes to view, read
                                                            about or engage in themselves in games and gaming
the world’s biggest game companies                          culture without necessarily playing that much on their
Among the ten listed companies with the biggest             own. To view games has also invited back many ex-
game-related earnings in 2016, only Activision              gamers that now lack the time to play or to become
Blizzard, EA, Namco Bandai and Nintendo are pure            masters at them (something that was often quite
game companies. Companies that stand out are Apple          central for former generations of gamers). Instead,
and Google, clearly showing the influence wielded by        they can watch others who have mastered various
strong platform owners (App Store and Google Play           games. One example is the Games Done Quick live
respectively). Other companies are entertainment            event where skilled players play through a number of
groups such as Warner Bros., hard- and software             games as quickly as possible.
companies such as Sony and Microsoft and the
Chinese internet giants Tencent (biggest game-
related earnings) and NetEase. Togehter, the biggest
companies grew 25 per cent compared to previous
years, significantly more than the market average.

                                                                                                                 27
The Nordic Game Industry

Revenue             Million EUR          Companies             Number           Employees             Number
Denmark                      156         Denmark                   151          Denmark                   770
Finland                     2518         Finland                   250          Finland                  2750
Iceland                       76         Iceland                     12         Iceland                   443
Norway                        38         Norway                    180          Norway                    599
Sweden                      1325         Sweden                    287          Sweden                   4267

Please note: Due to the varying methods of measuring the size of the industry,
the numbers are not directly comparable

With Sweden and Finland leading       engine company Unity which was         several operators within the core
the way, the Nordic countries         founded in the country and the         segment on PC. One of last year’s
have developed into one of the        mobile hit Subway Surfers that was     most vaunted indie games was
world’s foremost regions for          developed by Danish Kiloo and          the universally celebrated Owlboy,
game development. There is little     Sybo Games. The base for Lego’s        developed by the Bergen-based
competition between the individual    entire digital venture is in Denmark   D-Pad Studio.
countries, on the contrary, they      and the country has a burgeoning
are thriving from a growing labour    indie scene with Napnok Games,         The Finnish success story has
market and additional businesses      Copenhagen Game Collective and         run parallel with the Swedish.
that attract international talent     Lyst Summit.                           Finnish game developers possess
to neighbouring areas. Good                                                  a relatively broad selection of
collaboration is visible in both      Icelandic game development is          companies with fine tradition, such
work and education, to which          primarily signified by CCP and         as Housemarque, AAA studios like
people from other Nordic countries    EVE Online. The game is one of         Remedy and Bugbear and many
can also apply. Finland has a         the more profitable in history and     smaller-sized game developers.
dominant position in terms of         the company is still contributing      On the other hand, the country’s
domestic revenues and Sweden          the lion’s share of the Icelandic      enormous successes in the last few
in the breadth and scope of the       revenues. A growing number of          years are rooted in mobile game
brands. Still, our neighbours in      smaller companies, particularly        development in the Smartphone
Norway, Denmark and Iceland are       within the mobile segment, are         era, headed by big companies
clearly driven by an endeavour to     expanding and achieving stability.     like   Rovio     and     Supercell.
strengthen and diversify the Nordic                                          Supercell’s advancements are
game metropolis.                      Not wholly unlike Iceland, Norway’s    well-documented and the company
                                      gaming scene has historically been     represents 92 per cent of the total
On paper, Denmark is not a big        dominated by one company, the          revenues of the Finnish industry.
gaming nation. There are some         developer and publisher Funcom
notable   successes     however       (Conan etc.), However, Norway
including international graphic       has    successfully     established

28
29

Battlerite, Stunlock Studios
Future

Although the days of hyper            about and protect the role of          Name of the Tsar and Star Wars
growth with 40 per cent annual        game developers worldwide. In          Battlefront II. Gothenburg-based
increases may be over for now,        Sweden, the organisation wants         sister studio Ghost is working on
the future continues to look bright   to make it easier for developers       its upcoming racing game Need for
for Swedish game developers.          to share their experiences and         Speed Payback and Josef Fares’
Swedish game companies are            imporve in their aspects of games      A Way Out is published via EA
active in a global field that makes   creators. IGDA Sweden is starting      Originals. EA have also announced
it difficult to present a holistic    branches in Malmö, Karlshamn,          the new, secretive company branch
picture of growth solely based on     Skellefteå, Skövde and Stockholm.      SEED, a form of internal incubator,
the companies´ annual accounts.       Networking takes place within the      focussing on high-tech innovation.
It is important to also look at       official Facebook group, at game       The team is based in Los Angeles
other growth parameters such as       jams, conferences, bars and            and Stockholm and will work on
employment and entrepreneurship,      workplaces.                            science fiction-esque subjects
and this is where the growth                                                 such as deep-learning, neural
continues unabated.                   2017 also marks the third year         networks and virtual humans.
                                      running for the non-for-profit games
Today’s Swedish industry is           accelerator Stugan.
healthy and stable, with enormous                                            Mojang releases the fiction novel
potential for growth in future        2017 and beyond                        Minecraft: The Island by World
innovation cycles and paradigm        The bright future of Swedish           War Z author Max Brooks. They
shifts. Another rapid growth period   game development was brilliantly       also announce Minecon Earth, an
is to be expected when many of the    summarized at trade fairs like         online version of their Mincecraft
heavily-funded companies start to     GDC, E3 and Gamescom, where            convention. Mojang has also
grow organically. The same can be     as in previous years, the Swedish      advertized a noteable Minecraft
said for our listed companies, that   representation is notable at press     update, which will include cross
have no doubt only just begun their   conferences, in media reports and      play and the possibility to play in
journeys, and more IPO’s are to       news feeds.                            4K.
be expected. VR is another future
prospect, and the intention of the    DICE has released the critically       The Malmö success story Massive
domestic companies to invest and      acclaimed Battlefield 1 which has      Entertainment has hinted at mouth-
merge offers still more potential.    currently reached over 21 million      watering plans: the company has
                                      players. The graphic engine            signed a contract with the director
In 2017, IGDA – International         Frostbite is becoming irreplaceable    David    Cameron’s      Lightstorm
Game Developers’ Association –        for the EA group and is also           Entertainment to produce several
was resurrected in Sweden. IGDA       seen in BioWare’s much-hyped           games based on Avatar, the
is an international organisation      space adventure Anthem. The            most successful film in the world.
with over 8000 members, whose         Stockholm firm has also presented      For this, Massive will need to
purpose is to improve, inform         the Battlefield 1 expansion In the     employ hundreds of people in the

30
Deep Rock Galactic (published by Coffee Stain Studios)

next few years. Ubisoft, Massive           Rock Galactic, the first ever game    New Colossus, the follow-up to
Entertainment’s French owner,              the studio signs as a full-fledged    the studio’s acclaimed Wolfenstein
also opened a new studio in the            publisher.                            reboot.
Swedish capital. Ubisoft Stockholm
will be led by Patrick Bach, former        Paradox Interactive held its own      Starbreeze released Dead by
Studio Manager at DICE. With over          fair, PDXCon in Stockholm. The        Daylight on Xbox One and PS4.
30 offices around the world, Ubisoft       company has also acquired             The company is also publishing
is one of the world’s biggest game         Triumph studios, launched Steel       Psychonauts 2 by renowned
developers and publishers. It is           Division; Normandy 44 on PC, and      Double Fine Productions and
not yet known what the Stockholm           Cities: Skylines on Xbox One. The     System Shock 3 by Otherside
studio will work on. Initially it will     group has also opened a mobile        Entertainment. In Barcelona, a
assist in Massive’s work with Avatar.      studio in Malmö. At Gamescom in       mobile game version of Payday is
One of Patrick Bach’s first tasks          August 2017 Paradox presented         in development.
will be to recruit around a hundred        several expansions to existing
new employees. In addition to the          games like Crusader Kings II and      With continuous support, physical
planned recruitment of 200 persons         Tyranny but also brand-new titles     launches for consoles and a
in Malmö, Ubisoft will create 300          such as BattleTech and Surviving      stream of new content, Fatshark
new jobs in Sweden. Massive’s              Mars. Other companies presenting      has sold over 1.5 million copies of
self-developed graphic engine              games at the Cologne trade            the Warhammer game Vermintide.
Snowdrop can be seen in gamesas            fair were Toadman Interactive,        The company is expanding,
far apart as Starlink: Battle for Atlas,   which is working on a Dark Souls      building the brand and attracting
Southpark: Fractured But Whole             inspired shooter entitled Immortal:   more players. The studio has also
and Mario+Rabbids Kingdom                  Unchained, and Goodbye Kansas’        invested in various new projects. In
Battle. Super Mario himself has            newly formed studio Experiment        August 2017 Warhamer: Vermintide
now been rendered in a Swedish             101 that announced the Kung Fu        2 was announced.
graphics engine!                           fable Biomutant (with THQ Nordic
                                           as publisher). THQ also reported      Fall Damage is the latest in the long
Among many high-profile career             their acquisition of the German       line of newly established companies
changes, Daniel Kaplan, Mojang’s           developer Black Forest Games.         with a star-studded roster. The
first employee has gone on to join         In addition, Zoink’s Fe received      founders share a background
Coffee Stain Studios. The publisher        plaudits and several Best in Show     at DICE and are supported by
Raw Fury has recruited well-known          awards from journalists. In late-     funding from Goodbye Kansas’
names such as Karl-Magnus                  August 2017 THQ Nordic acquired       investment branch Game Invest.
Troedson (formerly of DICE) and            the     Skövde-based     developer    Another example of a company
Callum     Underwood      (formerly        Pieces Interactive.                   with an impressive background of
Occulus Rift). Among others,                                                     renowned developers is Malmö’s
Coffee Stain Studios is working            In Uppsala, MachineGames are          Midnight Hub. The company is
with the Danish-developed Deep             developing Wolfenstein 2: The         working on their first game, the

                                                                                                                  31
Statik, Tarsier Studios

                  story-driven mystery Lake Ridden. Armin Ibrisagic,           creators are currently working on a mobile version of
                  formerly PR Manager at Coffee Stain Studios, has             Call of Duty, one of the world’s biggest game brands.
                  formed the studio DoubleMoose together with the
                  Swedish YouTube star PewdiePie.                              Ruckus Rumble is the world’s first ever PlayStation
                                                                               4 game developed by students at a vocational
                  Landfall are working on the promising TABS. Before           college; and was made as part of the education at
                  even being released, the game has become a YouTube           Playground Squad in Falun. The school collaborates
                  favourite with over 200 million views.                       with PlayStation First – a division within Sony that
                                                                               supports a few select educational programmes with an
                  An increasing number of game ventures in southern            exchange of skills and hardware.
                  Sweden have consolidated in Malmö. Frictional Games,
                  most known for horror games Amnesia and Soma, are            game developer clusters
                  also opening an office in the city.                          In a growing industry, the need for regional support
                                                                               and engagement as well as cooperation with higher
                  Tarsier Studios bravely greeted 2017 as the biggest          education and the local economy soon develops. Arctic
                  ever year in the history of the company. The Malmö           Game Lab is an initiative aiming to gather the game
                  studio launched two games, the acclaimed - Statik and        industry in Norrbotten and Västerbotten counties and
                  Little Nightmares. The first one launched as a VR game       develop a cluster of successful companies in northern
                  in collaboration with Sony and the latter together with      Sweden. The project was launched in Skellefteå in 2014
                  Namco Bandai.                                                but flourished in 2016 and 2017 when the municipalities
                                                                               of Boden, Piteå, Umeå and Luleå joined the initiative
                  Malmö is also home to Divine Robot, who not only             as partners. They have organized multiple game jams
                  develop children’s games but also work with VR               and the collaboration has resulted in a unique two-
                  simulation and have increased their revenues by 54 per       year indie game developer education in Boden – a
                  cent to EUR 665 000 in the past year alone.                  collaboration between Sunderby community college
                                                                               and Changemaker Educations.
                  On the mobile front, MAG Interactive have two games
                  in soft launch. Snowprint Studios opened a new office        East Sweden Game was inaugurated in August 2017
                  in Berlin. Filimundus boast existing collaborations          as a co-working space for game developers in East
                  with Apple, Google and Amazon while Samsung will             Gothia. Game companies and entrepreneurs can
                  distribute the company’s apps in various bundles in          meet, inspire each other and realize their projects. The
                  2017. The game app market for kids is still in the initial   initiative is led by the industry veteran Tomas Ahlström
                  stages and will offer huge opportunities for growth.         and is situated in Ebbepark in Linköping.
                                                                               The Game Incubator has been behind the successful
                  King released the news that many have waited for since       and long-running incubator for game developers in
                  Activision bought the company; that the Candy Crush          Skövde. In 2016, it expanded to Gothenburg and has

                  32
Little Nightmares, Tarsier Studios

contributed to strengthening the western parts of        Meantime, there are indications that the acquisition
Sweden as a game development region. During the          trend is moving in the opposite direction – from a
year, STING launched a game incubator in Stockholm,      seller’s to a buyer’s market. Companies like THQ
the capital’s first.                                     Nordic, Starbreeze and Paradox Interactive show
                                                         that there exists the will and the financial muscle to
In southern Sweden, Gameport runs a successful           consolidate in Sweden, with an increased ownership of
incubator in Karlshamn, a part of Blekinge Business      foreign companies.
Incubator, and MINC established a game incubator
in Malmö. Both cities are supported by Game City, an     For more information, please visit the Swedish Games
association for game companies located in the south.     Industry page at Nordic Tech List for more information
                                                         about different investments (the site is still in beta):
investments                                              swedish-games.nordictechlist.com.
In the past year, the Danish publishing company
Egmont formed the new business entity Nordisk Film       esports
Games, whose purpose is to invest in Nordic game         Although esports is often mentioned as one of the
companies. Behind the wheel is Martin Walfisz, one       more important and biggest growth areas in the industry
of Massive’s co-founders and CEO of Planeto. Nordic      (in many ways correct) it is generally not as central
Film Games (NFG) plan to initially invest more than      for developers. After all, relatively few developers are
a hundred million Kronor and mainly concentrate on       making games focussing on esports. Rather, it is the
core titles on PC and consoles. Since NFG’s inception,   tournaments, teams, prize money and organizations
EUR 1.3 million has been invested in Danish company      around esports that require development. This is
Flashbulb Games and EUR 10 million in Avalanche          demonstrated by the many esports related companies
Studios, situated in Stockholm.                          started over the last few years. Despite its modest
                                                         population, Swedish teams and players are at the
Beyond the widely publicized acquisitions involving      forefront of competition and boast a high percentage
Mojang and King, the trend of foreign investors          of most professional players, the biggest prize money
acquiring Swedish game companies continues. In           and the highest number of victories per country.
January 2017 Microsoft bought the 3D company
Simplygon. For Simplygon, whose technology can be
seen in numerous blockbuster games like Resident
Evil 7 and Player Unknown’s Battlegrounds, it remains
business as usual under the Microsoft banner.
However, the limited company Donya Labs will be
liquidated, meaning that they can not be included in
future Game Developer Indexes.

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