A letter to our stakeholders, December 2010

This is my second annual note to our employees, business partners, playing community and anyone interested in following our nDreams adventure. My aim is to share my thoughts on what we’ve done this year and to reveal some of the exciting things that are happening behind the scenes.

This year has been all about ‘focus’. Over the last few years since we were founded, our aim has been to try out several new emerging digital platforms – we’ve explored areas like casual gaming, Facebook, the App Store, and, of course, PlayStation Home. In some ways, we’ve been like an octopus, with arms everywhere. This year, we’ve morphed from an octopus to a shark. (Well, technically two sharks, as you’ll see in a second…)

We started by splitting the company into two ‘sister’ divisions:

Unite Entertainment, lead by Matt Willifer ([email protected]), had a hugely successful first year – so much so that we’re making it a separate division. Unite are focused purely on becoming the leading creator of games for brands. After the success of games such as Lewis Hamilton: Secret Life (which had over 600,000 players), Crunchie Friday Town and StreetDance 3D, Unite are now working hard on projects including iPhone games and a stunningly beautiful Facebook game for one of the largest companies in the world. Unite is a division that I believe has a hugely exciting future.

Lewis Hamilton: Secret Life – a large global

Our nDreams division is now wholly focused on publishing and development. We’ve moved away from other platforms, and we’re currently working on a host of exciting PlayStation Home projects as well as creating our first virtual items for a second platform. In 2010, we worked on a whopping 23 different Home projects; a mix of original publishing and contract work ‐ check out the new video on our website (www..com) or subscribe to our YouTube channel (www.youtube.com/users/ndreamers) to see what has kept us so busy this year. We expect to launch several huge and genuinely cutting‐edge PlayStation Home projects in 2011 and to increase the size of our team significantly.

I’m pleased to say that this year has been very successful business‐wise for us. Our revenues have grown again, and this financial year they have exceeded £1 million for the first time. We’ve also continued our goal to raise a significant amount for charity each year – our insane Mega Transport Relay (a relay race where we used 27 different forms of transport!) raised over £800, and we’ve now donated nearly £10,000 to various charities since nDreams started up – so thank you to the team for making this possible.

It hasn’t all been plain sailing. We launched our first Facebook IP, Spirit of Adventure, which gained some great feedback for its story and gameplay, but didn’t perform well commercially ‐ Facebook has become a very tough platform to launch original IP on without the support of a brand or well‐known IP. We learnt a great deal in the process and we’ll be launching Spirit on iPad soon. We’ve also had a few members of staff move on to other places and new faces come in. But generally, it has been an exciting transitional year for us all here.

Our stunning Aurora Home space, which launches in the New Year

As I type this, my overall feeling is one of huge excitement. There are several enormous projects and deals in pre‐production or in negotiation that unfortunately I can’t talk about at the moment. We’ve just launched our Xi Museum, and are very close to launching Aurora, our first big public space inside PlayStation Home. We’re also going to be moving to a much larger office space very soon to support the growth that we plan in 2011 – if you could see our ‘All Stars’ team in their current office, you’d understand why this can’t happen soon enough!

I’d like to thank everyone who has worked so hard at nDreams this year, our business partners (in particular all four regions, Reebok, M&C Saatchi, Vertigo and Cadbury) and most importantly the incredibly loyal community who share, re‐tweet and generally help spread the word about what we’re up to. Keep watching – I promise you that you won’t be disappointed by what you see in 2011!

Thanks again for your support – it is hugely appreciated.

Patrick O’Luanaigh, CEO, nDreams (Twitter: @patrickol)