Swedish Game Developer Index 2017-2018 - Squarespace
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
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 2
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
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. 4
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
Revenue EUR Million 1325 1233.3 +7% +25% 987.9 +43% 691.2 +76% 392.3 +60% 2012 2013 2014 2015 2016 6
Employees Number of Employees 4291 3709 +16% 3117 +19% 2534 +23% 1967 +29% +30% 2012 2013 2014 2015 2016 7
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 8
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
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. 33
You can also read