Report 2014 4 | Introduction 6 | History Index 14 | State of the Industry 16 | Industry in Nutshell 17 | Studio Founding Years 18 | Locations 20 | Platforms 24 | Developers & Diversity 29 | Financial Outlook 30 | Financial Transactions 35 | Turnover Picture: Boomlagoon 2 ● Monsu Index 38 | Industry Support and Networks 40 | Finnish Game Developers Assn. 42 | Tekes 44 | Neogames Finland 46 | Invest in Finland 47 | IGDA Finland 48 | Education 50 | Regional Support 51 | Future 56 | Studio Profiles Front cover art Back cover art Fingersoft • Hill Climb Racing Cornfox & Bros • Oceanhorn Frogmind • BADLAND Kukouri • Tiny Troopers/Alliance Rovio Entertainment • Angry Birds, Remedy • Quantum Break Angry Birds Epic Seriously • Best Fiends Supercell • Clash of Clans, Hay Day Tribeflame • Benji Bananas Two Men and a Dog • Zombie Catchers Picture: Supercell ● Boom Beach 3 THE OLDEST still existing Finnish game Finnish game education has been companies are turning 20 this year ramping up nicely. In 2015, there (2015). Although the first commercial are over 20 educational institutions Finnish digital game was published providing game education in all already in 1979 and the first globally educational levels. distributed game in 1986 it’s fair to say Games are recognized as a form of that, from the industrial point of view, culture in Finland. This recognition year 2015 is also the 20th anniversary has positive affects not only to of the whole Finnish game industry. public perception of games, but Introduction In twenty years the Finnish game also to the attitudes of public industry has come far from its humble sector towards the game industry. beginnings. However, figures don’t tell Game community is supported the whole story. There are some trends by strong industry networks, that often are unmentioned, but that namely IGDA Finland are important not just today, but in the association, Neogames Finland future as well. association and Finnish game Finland is still a country of game developers association (Suomen developer enthusiasts. In 2014, Pelinkehittäjät). These associations for example, the Global Game have a crucial role for instance in Jam Finland gathered almost 700 community building, information hobbyists to 15 sites to develop sharing and lobbying. games. 4 Introduction The main purpose of this publication Invest in Finland and Tekes for their is to provide a general overview of the support. Finnish game industry’s landscape. The findings presented in this report Team Neogames: are based on 110 company interviews KooPee Hiltunen and an industry database maintained Suvi Latva by Neogames. The database has a J-P Kaleva basic information of 260 Finnish game Emma Ronkainen developer studios. In total 53 game companies, all members of the Finnish game developers association, are listed and introduced on company profile pages. This study is the latest part of the continuum of Finnish games industry studies published 2005, 2009 and 2011. We wish to thank everyone who have helped us to realise this report. Special thanks to Suomen Pelinkehittäjät ry (Finnish game developers association), Picture: Grand Cru ● Supernauts 5 History Picture: Fingersoft 6 ● Hill Climb Racing History 1980’s: The beginning when the quick progress of technology enabled both technologically and THE ROOTS of the Finnish game culturally more ambitious games. industry, as we know it today, were laid This, in turn, forced the hobbyists to in the beginning of the 1980’s in the specialize in a certain area of game era of the first personal computers. development and to share their Even if the scope and financial expertise with the other hobbyists. significance of the game development The 1990’s with its strong demo was quite small in the 80’s, it created scene brought typical corporate the base of the Finnish demo scene elements to the hobbyist culture: and game development culture. The teams, objectives, competition and early experimentation of technical, professionalism. It is no coincidence commercial and cultural possibilities that the oldest Finnish game studios offered vital experience in game have a strong background in demo development and the reality of the scene. Even today, many new Finnish game market. game studios are founded by teams who have qualified themselves in demo 1990’s: Demo scene and the scene or elsewhere in the vibrant first steps of the industry Finnish hobbyist scene. THE ENTHUSIASTIC hobbyist culture that began in the 1980’s started to take new forms at the turn of the decade, 7 History The beginning Supreme of 80’s home Snow- computers & game boarding development First First and as a hobby internatio- First still existing First First nal game game companies world class commercial Assembly Sanxion events are founded mobile products studios 1980 1985 1990 1995 2000 Dot.com & mobile hype Picture: Rovio 8 ● Angry Birds History 2nd round First big studio boom mobile game 2012-2014 studio acqui- Changes sitions on business models Digital 2011–2012 51% of Digital mobile Big internatio- distribution distribution Supercell was in PC platform nal investments acquired with expands to Finnish Game (Steam) (Appstore) $ 1,5 billion by Companies Gung Ho & Softbank (15.10.2013) Investment Facebook recession & games and Max Angry F2P The growth social mobile Payne of Nokia gaming Birds 2000 2005 2010 2015 2020 HayDay & Habbo Clash of hotel Clans 9 Late 1990’s: Hype and dozen of studios and the industry employed a bit less than 200 people. downfall The second half of the 1990’s is BY THE END on the 1990’s the generally considered a time of fast professional game industry had technological evolution. Especially History emerged in Finland. There were a the internet, network technology in general, and the digital economy took big steps forward. In the ICT sector, the years 1995-2000 are remembered as the “Internet bubble” or “dot.com hype” due to financial speculations. In Finland the hype had a strong mobile emphasis. The investments by Nokia on the development of WAP-protocol set the direction of the Finnish game industry far into the next decade. WAP was advertised to enable the easy use of mobile internet. Due to technical (poor usability) and financial Picture: Boomlagoon 10 ● Monsu History (e.g. the high price of data transfer) end unsuccesfull N-Gage (2003) and reasons WAP never really became an N-Gage QD were significant enablers economically profitable phenomenon. of game development in Finland through those years. Early 2000’s: Back to the Together with the fact that at the basics same time the global markets for Java- AT THE START of the millennium, based games kept growing this helped unsuccessful investments, the high risks to secure the Finnish game industry’s of new investments and the general strong mobile focus and prepared deliberation of investors practically the whole industry for the upcoming stopped investments completely. industry-wide digital distribution This clearly affected the structures market. Although many companies of of the game industry. Companies that era have already closed their doors changed their focus from conquering their talents are still in the industry. the world to securing organic growth and focusing on project based work. Late 2000’s: The rise of the On the mobile side this meant more digital distribution cooperation with mobile operators THE RECENT growth and progress and aggregators who collected game of the Finnish game industry have portfolios for the operators. Even been based on digital distribution though investments stopped for the and the possibilities created by it. years 2002 and 2003, Nokia’s in the Shortened value chains enabled 11 by digital distribution opened new also for the small and poorly financed possibilities for game developers. game studios. Consequently, from 2011 At the same time, working without to 2014, 179 game studios have been publishers brought new significant risks founded in Finland. for the companies. A company working History without a publisher has to bear both Investments the costs of production and marketing DURING 2011-2013 the financial and also do all the marketing and PR success of the Finnish game industry tasks by themselves. Thus an increase drew the attention of the international in possibilities lead to the rise of risks investors. This is best demonstrated and to the expansion of the area of by the fact that investments in the expertise. industry during those years were over $1.7 billion (€1.26 billion). The biggest Early 2010’s: Angry birds and of these investments is naturally the a start-up boom acquisition of Supercell by GungHo/ IT CAN BE said with certainty that Softbank worth €1.1 billion. digital distribution was a substantial reason for both the Angry Birds Mid 2010’s: F2P phenomenon launched in 2009 and AFTER the digital distribution, the start-up boom which started in 2011. biggest and financially most significant For the first time, developing games transition in the industry has been the and getting them distributed was easy introduction of the F2P model. The 12 History best examples of the significance of the have founders with strong prior F2P model have been Supercell’s Clash experience from the industry, which of Clans and Hay Day, whose success puts them in a far better position has lead the Finnish game industry’s than the first timers. The fact that the turnover to a whole new category. Finnish game industry has been able to produce approximately 30 second Mid 2010’s: Second round round studios is also a clear indication studios and the end of the of its maturity. beginning A CURRENT new phenomenon in the Finnish game industry is a second round start-up boom. These studios Picture: Bugbear ● Wreckfest 13 State of the Industry of the Industry State Picture: Cornfox & Bros 14 ● Oceanhorn State of the Industry of the Industry State AS AFOREMENTIONED, the oldest 260 active game developer studios in still existing Finnish game studios were the end of 2014 in Finland.