The Gordon Gekko Issue Eino Joas Works at CCP As a DUST 514 Game Designer

VOLUME 1, MAY 2011

CCP

The Gordon Gekko Issue Eino Joas works at CCP as a DUST 514 Game Designer. He holds a Master’s degree in Economics and takes pride in P 04 being a connoisseur of all things microtransactional. While Main story: What does CCP sell? Surprised with the cover? he enjoys the many delights of Shanghai living, where he is currently based, he says what he misses the most about P 06 his native Finland are the wolves and snow. Wait till you see the contents. Argument: Are virtual goods sales in EVE a good thing? Known at times as The Good Doctor or, more properly, Dr. Eyjo, Eyjólfur Guðmundsson is CCP´s Director of P 08 Research and Statistics, heading a team of nine, all Virtual goods feature: Incarna responsible for in-game (and, at times, out of game – Based on the assumption that as a loyal, clever CCPer, you cue Iceland during October 2008) economies. Eyjo flies must have read previous Fearless issues, you know that this P 10 gliders in his spare time on the occasions when Icelandic new one (the first one this year) is looking kind of different. Virtual goods feature: DUST We’ve changed things: the way you hold it, the tone of what skies permit him, saying that it’s often more dangerous on land in the country than it is in the air. you read in it, the way it makes you feel. Fearless is getting P 12 more, well, fearless. It’s asking some tough questions, its Virtual goods feature: World of writers are experts in what they write about and it’s one of the best Part Icelandic, part French, all physics, Kjartan Emilsson Darkness issues I have had the pleasure of producing. Fearless aims at becoming was recently knighted with a sword from the CCP stables an objective news-stop, journal even, for you, the CCPer. It aims to involve for his decade’s dedication to the company. In his tenure, Peri Desai P 14 you. It wants to know what you think, how you feel, what you do - at your he has been Lead Game Designer and then Director for the Editor CCPer proﬁ les favorite place to be in the day, five days a week: CCP. Shanghai office before returning to Iceland as once more CCP’s Principal Game Designer. He remains steadfastedly And it couldn’t come at a better time. As EVE edges closer to being the P 20 entralled by photography while not living a life of general decadence. grand dame of gaming, turning 8 years old this month, and our other Nearly censorable photos game titles continue their prodigious growth (yes, World of Darkness too – you got the t-shirt to prove it), our development road map is shaping up As Associate Producer for the World of Darkness, Priscilla stronger and better. However, as a subscription based golden goose, EVE Kim’s gotten to know bloodsuckers first-hand. With needs to incorporate the virtual goods sales model to allow for further hair as changeable as a chameleon, a nomadic life revenue – revenue to fund our other titles, revenue for its developer: you. roaming from city to city in the US, and a checkered past The model also supports the notion of creating a meaningful experience involving convention costuming, Priscilla can be counted and identity for the player (more in our main feature on page 4). on to bring a colorful tint to the game’s development.

For EVE, it will combine the forces of subscriptions with those of smaller Scott Holden is part of CCP’s small but strong Team Ginger, sales. A whole new currency, the AUR, for these sales, means a whole new a group of individuals with hair in varying shades of red world of possibilities. And that’s just for a published game – think of what (Facebook page pending). As Director of Content Design, virtual goods sales can do for the likes of a console title like DUST (page Scott works from the Atlanta office overseeing all content 10) and the obvious value they would bring to the fashion passionate in World of Darkness (page 12). But change is married to reservation, and for the EVE property; he regularly shuttles between our depending on the reservation levels, its spectrum of adoption ranges from offices and his homeland of Canada. those totally for it, to those vehemently against it. A debate piece takes on brave souls who courageously tread on contested territory, arguing about CCP Sreegs aka Sean Conover moved to Iceland from the hot topics, thematically varying with each Fearless issue. See this issue’s The masthead was written US east coast in September 2010 to become part of the by Sif Hákonardóttir virtual goods sales argument on monetization versus design integrity on company whose game he’s played for the past 6 years. DISCLAIMER: page 6. The views put forward in Sean’s favourite thing to do on a weekend is sleep, this magazine do not reﬂ ect though you won’t catch him snoozing on the job. As But before you begin to moan about the loss of everything Fearless had in general CCP company policies Senior Security Administrator he polices mischief makers the past, we’re still running some regular features – like profiles of people, or decisions and are strictly both within EVE as well as at CCP. and photos you forgot you’d uploaded to the CCP library, produced now individual opinions, written by for your colleagues’ viewing pleasure. I’d also love to hear from you. Our CCPers or about CCPers who Talk and read: feel strongly about these issues. Help: next issue will have a “Letters to the Editor” section, if I receive enough Say what you think at This is conﬁ dential internal (fan) mail. [email protected] Kjartan Emilsson for editorial guidance, Davíð Sigurðsson for compiling information. Please respect that CCP people profiles, Lyuba Kharitonova for information on the Employee every company has its trade Access an e-version at So tell me what you think. As a CCPer, sharing an opinion is the least of secrets and that you are privy to central/ccp/fearlessnewsletters Survey Results, Diljá Ámundadóttir for support with the character creator your worries. those at CCP. avatars and Lilja Valþórsdóttir for statistics on the Annual Report. 3 he English word game is certainly competing for the expenditures will actually derived from the Icelandic time that people allocate for improve their experience of word gaman, which actually leisure and pleasure. the game and make them means fun. Furthermore, Buy me feel better about it and the gothic etymology of the word Another important factor to about themselves. gaman is ‘people together’. That is consider, especially in actually not a bad definition for us: the context of social Now does this mean people having fun together. games, is that people that we should go are participating and for unbridled evil More generally a game could be thus representing I’ll change consumerism, trying said to involve people performing themselves to others to squeeze every What Does CCP sell? some kind of formalized activity in one way or another. The single penny from our and deriving a certain amount of importance of appearance hapless customers? Of emotions from it, usually positive ties directly into our notion course not. Summarily: ones. of vanity, recognition and your life By validation. This again Kjartan Emilsson So when we say that we are selling heavily influences your will thoroughly enjoy this extra The simple question of “what does CCP games what exactly are we selling? potential emotional response of expenditure. Why is that? Is it the activity, the rules or the the experience. CCP is selling people sell?” may sound a little trivial to some, but emotions? We do create some of An interesting aspect of selling experiences and identity the rules and they certainly affect So we are also selling people experience and identity is that the In this, we are in many will actually find themselves faltering a fraction of the activities and a social identity or a persona. actual action of paying for it can competition with people’s emotions you will experience, but Again here we are in competition when challenged to answer it at their family strengthen their perceived value. limited time for other we will never cover them all. In with the many roles that a person reunion or when trying to impress some This is in many ways because of the experiences and identities fact, people will also create their might have during a day. Some way we are raised as consumers: romantic prospect. own rules, thus enriching further they might be happy to leave We shop therefore we are. Fashion Consumerism can, up to the game experience. behind temporarily, like their work Obviously we sell games, as we are a game is a beautiful example of this: it a certain level, improve identity, but others they might is an endless source of creativity, experience and strengthen company. But what exactly In the case of an online game like be less interested in abandoning, seems completely unpredictable identity, making us more EVE it is more correct to say that like their role as parents or lovers. and can fetch incredible prices competitive is a game? we are really selling access to tools Now compare the two following yet is deceivingly fleeting. When Too much consumerism will and social environments allowing different people: buying nice clothes we might feel ruin the experience (think you to perform certain activities more desirable and confident tourist traps) and experience emotions resulting “I am an EVE space pirate that and in this way the act of buying from them rather than selling the blows up innocent wayfarers for can actually be a factor to make emotions themselves. As people loot” your experience more meaningful A balanced approach should use those services we could or your identity stronger and as acknowledge consumerism as argue that we are selling people And such it becomes more competitive a powerful game design tool emotionally laden time, or more with other alternatives. The act of (amongst others) that we need to succinctly, an experience. “I am a golfer that likes to finish buying is a powerful psychological get familiar with and that should be 18 holes on Saturdays” pattern deeply rooted in all of us used carefully and with respect to But this is time they could whether we like it or not. create more enjoyable experiences I shop easily choose to spend Both of these will pay money to and stronger identities for our differently. Indeed, access this experience. Both will The pure subscription model for players. If successful, this will therefore people’s time is a spend a significant amount of games, even though quite well result in their increased emotional limited resource time doing it and will have strong suited for the selling of holistic attachment to our product and and thus extremely emotional moments doing so. The experiences, takes little advantage services for the benefit of all. If valuable. We are in latter, though, will probably spend of this part of human nature. Many not, we run the risk of sucking our direct competition with other much more money indulging in his players will actually voice the customers dry and leaving their I am activities, and must make sure that pastime. He will spend a lot of time shriveled corpses by the side of opinion that adding any kind of the experience we offer is more researching and buying various consumerism to such a game will the road to the benefit of none. engaging and meaningful different clubs, balls, gloves and ruin their experience. Those same than the alternatives. shoes. He will spend money in players will buy PLEX without any This doesn’t mean that the club house socializing with qualms to get instant access to we are in competition other golfers, travel, etc. In fact that ship they just “need to have with all of a person’s the average golfer spends $3,000 right now” and they might even time because most people a year on his pastime with about go as far as buying a $500 leather compartmentalize their life for half of it being the actual access jacket that matches the one their different functions, but we are fee to the experience. Most avatar is wearing. And all of these

5 don’t. We’re going to face an uphill well executed. But most important out. I think that’s pretty goddamn Kristoffer struggle, and the reason many of of all, they need to provide value cool, and I’m not entirely sure why Yes Touborg us never talk about this publically to our customer. that makes me Hitler to some EVE is that we’d be burned at the stake players. wants you to show by the players. I’ll give you an example of him the money: something I think provides value Now this shouldn’t be a one way I don’t really understand the logic to our customer, which I’d like to street; I think we should be giving I would like virtual goods sales in behind it, but that’s probably sell. Right now, you can store 50 money away too. Giving people Are virtual goods EVE. In fact, I’d like to sell a lot because I’ve been using virtual personal fittings on our servers. small amounts of micro-currency more than vanity items. Does this goods sales for a long time now That’s more than enough for the for being loyal subscribers, or mean I’m an evil capitalist that, and actually prefer them over average EVE player, but for a even as a reward for high level sales in EVE a unless stopped, will cause the subscriptions. Why? Because they subset of our users, it’s too small gameplay like taking sovereignty entire company to catch fire and let me manage my spending, and a number. Why not be able to add should be just as legitimate a part good thing? be buried at sea by a secret team I’ll sometimes prefer to buy a more storage space for a small of the business model as charging of Navy SEALs? better experience when engaging amount of money? You’d even be players. in my hobby. able to upgrade it multiple times Kristoffer is a driving Let’s hope not, although that’s the if you needed and permanently Moderated by force in CCP’s Game impression I get sometimes when Does that mean that they’re add this benefit to your character, Design department. Sean Conover interacting with our customers. universally good, and we should making it even more valuable. And The vast majority of There is a pretty overwhelming slap a price-tag on everything? you know what? If you don’t like his free time is spent buying dresses for Virtual goods sales can be viewed by Probably not, and like any other paying for this, you can always perception amongst EVE players his characters (using microtransactions) some as a nuclear issue. In many cases that these changes are bad. I think change we make to our game, they buy a PLEX off the market, and in League of Legends and reading it may be that the conversation itself they’re brilliant, but our players need to be well thought out and never have to get your credit card authentic Japanese Manga comic books. could be better managed. It is easy to make decisions without debate, but CCP Two CCPers from each end of the spectrum of this espouses transparency and unity – two topic vocalise their thoughts on it. values integral to the recent Economic and Microtransaction Summit held in Reykjavik, John additional subscription options. sales (such as with PLEX), then deal about how you can approach which focused on the viability of the virtual The negatives caused from the gaining an in-game advantage virtual goods sales. While it’s true No Turbefield ISK for real money trade such as isn’t justifiable. More revenue is that others, such as Blizzard have goods sales model in all our games. hacking and botting are reduced of course an aim, but making our gone down the microtransaction is worried that the Fearlessness is as much an inherent as their profitability declines. PLEX customers feel like they are being path, they have not implemented rules are changing: differs from typical virtual goods ‘double billed’ to be able to play any gameplay affecting items. They company value as any other. It follows sales because we allow players to on the same level as others is just also do not offer a microtransaction then that we need to have a healthy pay their subscriptions this way a step too far. to gold conversion as we do with Virtual goods sales can be positive using in-game currency. PLEX. conversation about an issue such as in certain circumstances. However, The most visible example of microtransactions. The inevitable tension when you introduce something To me, virtual goods sales are far another game introducing virtual I don’t oppose the concept of between monetization and design is that can create an imbalance where less appealing when the gameplay goods sales is certainly LOTRO. virtual goods in the case of vanity others can’t compete with their is affected and they aren’t It is worth pointing out though items, merely in cases where the an obvious red flag when it comes to spending power, you inevitably replacing a black market. When that they made almost everything monetization of items impacts the introducing a whole new way of playing decrease their satisfaction we’re adding additional things into microtransaction based and at the balance of the game. with your product. As such it is the game that enable users to gain same time removed subscription a game. A great deal of the perceived essential that a game is designed an advantage over other people for fees. Because other games with John Turbefield is angst seems to come from a deeply- from the ground up to incorporate real money in a way they simply very different communities and a renowned master seated concern for the very real virtual any major virtual goods sales that wouldn’t be able to if we hadn’t very different gameplay styles are of spreadsheets fall outside of this. PLEX (and time done so, then it becomes an issue. able to do something it doesn’t and works his Excel worlds we’re all creating rather than that codes before that) work extremely I feel that if people have already mean we can do the same thing wizardry in the Research and Statistics well as they not only largely paid a subscription fee then unless with the same levels of success. corporate greed is defining the direction of department. In-game he has led large replace a black market for ISK, there is a good reason for the EVE is a far more complex game alliances to war in EVE, balancing that development. but provide substantial benefits to overall community to introduce a with significantly more social with the real life courage of moving to a other players in the form of offering gameplay-affecting virtual goods interaction, which changes a great rock in the middle of the North Atlantic.

7 no matter how cool, should cost rate analogy, think of it like this: the same as a new Maserati; simi- you can develop a friendship by larly, it would be silly to buy sun- “spending” your time, or you can glasses for my avatar and pay the pay to get the same benefits that same price that I would for a fac- friendship would otherwise allow. tion battleship. So we might sell (I’m sure you can think of a few tiny things or batches of consum- other situations where one might able goods for just a few “micro- temporarily “buy” services other- PLEX,” but we would have the op- wise gained only through social tion to sell premium content and interaction.) services at a much higher price point. And that’s really about all there is to it. Regarding the notion of “vir- Consumable goods raise a unique tual sales in Incarna,” though, I’d problem. In EVE today, once a play- like to elucidate one point before er buys a blueprint original (BPO) closing: Incarna cannot be consid- or a new skill, that asset or benefit ered a product distinct from other cannot really be taken away; the parts of EVE. Incarna and “flying- asset neither depreciates in value in-space” (and in due course DUST nor degrades. Destroyed ships 514) are merely aspects of the EVE and modules must be replaced, Online experience; in virtual sales, though, and we want to ensure as in development as a whole, we n short, it’s the same in Incar- that the market for most virtual must all adopt this way of thinking. na as elsewhere: we give players purchases is similarly renewable. Thus, we will not and cannot focus the means to buy stuff in addition And in cases where a virtual item on virtual sales only within the In- to their base subscription, offering or service is perpetual or unchang- carna environment, nor build that things like new “nano-paints” that ing, such as with avatar recustomi- environment around such sales; allow one to customize ships while zation, for example, we will most rather, we will effect a universal docked; new articles of virtual likely levy a small broker’s fee or strategy of micro-sales throughout clothing, tattoos, and other avatar tax on the sale. the EVE experience. So, as a play- customizations; tokens for customer, while you are inside a station, izing Captain’s Quarters and so One other service we’re looking you will find gameplay that links on. Not all virtual purchases will at is selling faction standings. We to other aspects of the game and focus on customization: some will want to offer convenience for a that also presents you with virtual EVE: simply be new items, ammunition, price. As an example, your friend purchasing opportunities — just ships, etc. that can be purchased might give you free tickets to see as you will while you are in space outright. The devil, as always, is in her band play simply because the or on a planet fighting as a DUST Delivering the goods: the details. two of you are friends; meanwhile, merc. other fans have to pay for a ticket virtual sales in Incarna First, we don’t want to glut the vir- because, well, that’s how it normal- tual market with too many offers ly works. The more noteworthy the right out of the gate. Instead, we band, the more those friendships By Scott Holden want to provide a steady stream of (and thus the tickets) are worth. If digestible goods and services over that doesn’t seem quite an accu- CCP is in the process of adopting a virtual sales a long period of time, allowing customers to sample and purchase as model for its game products. While this model has they get used to the new model. You can develop a always been intended for World of Darkness and We want to cater to long-term cus- friendship by “spending” DUST 514, you may be wondering how this will tomers who will gradually acquire your time, or you can pay to a taste for our wares. work in EVE Online. Specifically, how will this new get the same benefits that strategy unfold in Incarna? Second, we must sell our units of friendship would otherwise virtual currency - the AUR - at ap- allow. propriate rates. No pair of pants,

9 not going to spur sales either. regarding virtual goods. Fashion in vanity goods, for one, remains s I don’t mean to say that sensible grossly underutilized across the you probably monetization mechanics and board but contains great potential. know, DUST interesting virtual goods are not If anyone in the real world knows will operate important – they certainly play how to turn people’s longing to be under a a key role in maximizing the unique into recurring wants it is virtual goods monetization potential that we have the fashion industry. sales model. To pent up in our engaged playerbase. offset the cost We want to see our monetization On the opposite end of the scale of ‘freeloading techniques blend seamlessly to vanity goods are performance- spectators’ DUST will into the game mechanics and based items such as weapons. have a nominal cover establish themselves as a part They are consumed through charge, one we believe of the fiction. They need to feel gameplay, making them a is highly attractive for an natural and in accordance with potentially powerful source of AAA F2P game. After the players’ expectations. Perhaps renewable income. Selling them cover charge you can play the principle of verisimilitude that for real money is very tempting. for free, but there are certain defines EVE and DUST will prove They are highly desired by the things that are only available useful to us in this – by functioning player audience and yield lower for a currency that derives so much like the real world, real development costs, as variation from real money. That is how world conventions become easier can be achieved through numbers the business model functions: to accept. rather than unique art assets. people spending real money on Selling them though, is highly all things virtual. Spending your One such convention is of controversial. We are planning on own money is optional, however. special importance to us: cyclical doing so. I would be tempted to If you happen to be economically consumption. In EVE, the say it is because we are fearless, challenged or just don’t trust the monthly but the real reason is that we have PlayStation Network with your strong evidence that selling credit card details, you can trade Emotion and performance enhancers, in ISK with other players for some engagement are moderation, works. Korean DUST: real-money currency, just like you developers have capitalized on can with PLEX today. You can also the fundamental performance-enhancing items do the opposite and exchange foundation for virtual for a long time, but it took a Fighting wars with purchased real-money currency goods sales. leap of faith from the people for ISK, too. Both work for us as developing Battlefield: Heroes long as money is being spent. to show that the same principles perseverance and real that work in Korea apply for the The above builds, of course, subscription takes western market as well. on the assumption that people care of this. With no subscriptions money actually want to spend real in DUST, we have to be careful about The market is changing and has money. To achieve this, one thing selling permanent awesomeness, been for years now. And like By Eino Joas is very important: people have as there’s a danger of saturating everyone else we’re looking to to be captivated by the game. the market. When everyone has adapt and change with it. Adapting Emotion and engagement are the everything, there’s no reason to to a business model that is Summer is coming and people are flocking to fundamental foundation for virtual buy anything anymore. Concepts not only becoming increasingly swimming pools. You usually have to pay an goods sales. Having interesting such as planned obsolescence and commonplace, but fast-becoming virtual goods to sell means perceived obsolescence thus play the de-facto standard, is essential, entrance fee, but at least in Reykjavik you get free nothing until the customers are a key role (obsolescence referring but we can do so much more. We can towels now, I hear. engaged and involved in the game. to the deliberate shortening of figure out how to step ahead of the In terms of the swimming pools of a product’s lifespan). In the real curve and do more than merely sell Next summer people will be flocking to play DUST Reykjavik, engagement equates to world, light bulbs are engineered some swimming goggles… group 514. There will be an entrance fee, but we will the water in the swimming pool. If to last for a thousand hours and buying power, deep discounts, we don’t have enough to swim in or fashion cycles get people to buy flash sales, dynamic pricing and make sure to also provide some proverbial free if it’s bloody cold, it will be really new stuff season after season. If monetizing social acceptance in towels. We will be charging for the swimming hard to sell those goggles. Spiking we are in this for the long run, we online games… and maybe just a the water with tons of chlorine is have to be thinking in similar terms tiny bit of that chlorine after all. goggles, though. 11 Cosmetic items will definitely be a major focal point, with The question of virtual everything from clothing, ac- goods sales is not “to cessories, Haven furnishings and decorations, tattoos, hair, do, or not to do?” etc. being available for pur- Rather, it’s “how do we chase. New collections could do this?” be released with each expan- sion. Particularly luxurious items could have a limit on however, final gameplay is too un- online purchases. The rarity of the certain to pinpoint specific possi- item would then become a point of bilities. pride for those who own it. Concierge services are similarly Cosmetics are the easiest form of hazy as far as specific implemen- virtual goods sales to discuss, but tation goes, but offer a midpoint they’re not the only ones. Items between cosmetics and power- that improve the player character’s purchasing. These are the items capabilities are some of the most that simply make life easier for effective at converting free or trial the player, without directly bet- players into paying ones. Accord- tering the character’s potency in t a more detailed level, ing to Jon Selin, Lead Designer on the game. Service items might in- virtual goods sales give a direct, World of Darkness, metrics from crease inventory size or increase unmistakable line of feedback into other games that sell virtual goods the amount of blood your Blood what players want. If we build a indicate that overall enjoyment in- Doll can hold. feature or items that nobody likes, creases – up to a point. Two types everyone will just use the features of items appear to create the most One important aspect of CCP’s they already have and like and give enjoyment: equalizers and merit- virtual goods sales philosophy, us no more development money. driven items. Equalizers are items though, is that any item bought It puts pressure on us to develop that allow the players to play with WORLD OF DARKNESS: for use in-game can also be sold things players actually use, in a or against substantially more pow- on the market in-game. Due to way that a subscription-based erful characters without completely this, a sufficiently determined and model doesn’t. eliminating the advantage of the More than fashionable wealthy player can buy any item powerful. Merit-driven items are purchasable for real money with “Escalation of commitment” is an- locked from purchase until the only in-game resources, if it is put other key concept for the value of player achieves specific criteria, Blood Dolls on the market. In practice, such virtual goods sales. When a person hence having to earn the item as an exchange would work much has put time, effort, or money into well as pay money for it. By Priscilla Kim like PLEX does today in EVE. No something, she’s more likely to one will be locked out of access- be attached. If players can spend After a certain point of power, ing something if they don’t want to Virtual goods sales are a hot topic these days, money more directly on our game, though, the enjoyment goes down spend additional money on it – the their enjoyment will heighten and (after all, how fun is it to have a and more and more companies are moving toward virtual goods sales possibility ex- they’ll bond more strongly with it. “win button” that allows you to kill ists so that players who don’t want them, CCP included. If handled well, virtual goods everything in sight with just one to invest the time can instead in- Given that World of Darkness is click?). When the mechanical power sales are far from a greedy money-grab that vest the money. impoverishes the players. At its most elementary, in pre-production status, specif- of microtransactable items scales ics on virtual goods sales are hard too high, player resentment goes The question of virtual goods sales “the king and the land are one.” When CCP has to assess. Broadly speaking, there up and players start abandoning is not “to do, or not to do?” Rather, are three main areas that virtual the game or avoiding it, and the more money to put into development, the players it’s “how do we do this?” For the goods sales will focus on in the company ultimately suffers. There yet unpublished World of Dark- get more goodies to play with. World of Darkness game: cosmetics, items of conveni- is a sweet spot on the scale of em- ness, the details are foggy, but the ence (or “concierge services”), and powerment that will only be found itself wouldn’t be in development if we didn’t have philosophy is strong. the revenue to support it. items of power. via experimentation. Right now, 13 Eric Dietsch Bára Gunnarsdóttir Kurt Van Meter created by Eric Dietsch created by Bára Gunnarsdóttir created by Katrín Atladóttir

Eric is the front end web developer Bára has been working as an EVE Kurt is the QA Manager for EVE for Team Dracbook currently user interface programmer for o n l i n e . H i s r o l e a t CC P i s t o f a c i l i t a t e working on “Conclave” aka EVE over three years. That means she so that our kick-ass EVE testers Gate of the World of Darkness implements all those buttons you can do their jobs as thoroughly and project. His tasks include coding click, the scrolls we all know and efficiently as possible. He also HTML, CSS and Jquery while love, the right click menus, and points out risks and advocates for coordinating with Marketing and all that other fun stuff you use to the quality side, helps get stuff the World of Darkness teams to interact with the game. deployed to the live server, gets design a stylized layout that flows flamed by players, helps to clarify with the game’s client. She loves playing football, and processes and communication and one of the highlights of her week ownership, and fights cowboys SVEINBJÖRG Jianwei Chen His love for his wife made him SHANE WALLACE is playing football with the CCP and kills ninjas. PÉTURSDÓTTIR created by Jianwei Chen gift her a kitten on her birthday created by Marco Mazzoni boys (and kicking their butts). Bára created by Sveinbjörg Pétursdóttir ten years ago, now a full grown also really likes snowboarding and Though American by birth, living in Jianwei was born and raised in cat called Merlin Underfoot. Eric One of the few true natives to other outdoorsy stuff, and has Iceland since 1996 has naturalized Her first job was at a record Shanghai. Before joining CCP he enjoys ice-cream and Jack Daniel’s, work at the Atlanta office, Shane’s recently started to knit way more Kurt where he is now one with all store and she performed as a worked in the QA department at often at the same time. lived under the shadow of Stone than is appropriate for anyone the people. There are several things backup vocalist for Reykjavik Gameloft for three years. In these Mountain all his life. At CCP he under the age of 60. If she was which piss him off: people that based band Gus Gus, so it’s no years he worked as a game play works in Ops as an Associate a Hollywood villain she would like don’t use apostrophes properly surprise Sveinbjörg loves music tester before joining CCP last year System Administrator, so he’s the to be Darth Vader – besides the or those that drive in the left lane and dancing. Domestic bliss has as a QA Tester. Working on DUST go-to guy for office computers deep sonorous voice, he has an without passing, for example. caught up with her however and 514, he is part of Team Vanquish. and the absolutely robust Lifesize awesome soundtrack wherever he now all she can talk about is her system, amongst other tech type goes. little son, Lego and going on rides things. Jianwei’s dream is to take part on her bling bike. in the Olympic Games one day, Much to his wife’s chagrin, perhaps in archery – though he These days you‘ll find her on the Shane pulls out all the stops on could easily compete with anybody third floor of the CCP Iceland office a synthesizer he owns at home, in movie watching marathons just CCPers where she works as an Associate recording and mixing mostly 80s as easily. Producer. Her projects include horror music during his spare time. with nearly product ownership for EVE Gate His cats enjoy it though, so at least and overseeing external liaisons he has an audience. spotless with VIVOX, CCP‘s partners for the voice in EVE. Her tldr version prison of her job is “making it easier for our players to talk to other players records about playing our kick-ass game”. That sounds like a fun job. Research and Statistics analyzes behavior - anything a Research character, account, organization or social group does in-game. and The discipline has four units each specializing in specific type Eyjólfur Guðmundsson of research. In addition the department regularly takes on Statistics different tasks and projects that have either been in testing mode or have needed additional resources where the unit can help.

Internal Internal Affairs Virtual World Socio-Economics is Data Datawarehousing DataM warehousingarket Market research Affairs also monitors Research a broad category warehousing is all about making DevelopmentResearch focuses on behavior but that refers to sure that data Datamining Services analyzing Monitoring employees Socio-Economics Development Churn/Retention focuses on CCP research on in- is accessible to subscriber trends playing our games Behavioral Analysis Datamining Services Subscriber Predictions employees as game behavior those that need it Surveys and understanding gamers within our (currently only for for their work. In our customer base virtual worlds EVE as a published order to simplify via surveys. The rather than our game). The access to the data results from this customers. CCP has economic research this team has research can be learned a lot over is published in the been developing found in bi-weekly the years about Quarterly Economic Online Analytical dashboards on best practices for Newsletter. Processing (OLAP) the RandS site staff members when Different cubes which allow on Central. This playing our game parameters users to access unit provides Ari Eldon and that experience Kjartan Þór Halldórsson are also used Jóhann Einarsson the data in a pre- Ingólfur V. Ægisson information from is compiled in the CCP to measure the structured manner surveys which are bible which you can health of the EVE directly through sent out with the find on the front economy, such as Excel. You can EVE newsletter, page of Central. price indices, the check on the OLAP surveys answered You can also turn amount of ISK in cubes on the RandS when a player to IA for assistance the system, jumps site on Central. quits, as well AS with roles on your and kills. All of surveys conducted Dev accounts or these parameters in cooperation with Sindre Lundberg any question that Freyr Tómasson can be seen on the Kristófer Hannesson Lyuba Kharitonova larger research you might have Publishing KPI pages firms. with regard to on Central. how you can play EVE. Everyone at CCP should enjoy playing EVE – just be sure to know the rules.

John Turbefield REYKJAVÍK

EMPLOYEE LOYaLTY 4.5 WOrK EVOLVEMENT 3.5 NEWCASTLE MY jOB aNd EMPLOYEE LOYaLTY PrOCEssEs 4.3 SHANGHAI ATLANTA 3.7 EMPLOYEE LOYaLTY WOrK EVOLVEMENT EMPLOYEE LOYaLTY 3.6 4.1 WOrK EVOLVEMENT 4.4 MY jOB aNd WOrK EVOLVEMENT PrOCEssEs 3.5 3.6 3.7 MY jOB aNd PrOCEssEs MY jOB aNd PrOCEssEs 3.6 3.7 2011 Highest score

I often try to improve the ways I do my job. 4.4 I am always positive towards ccP to an outside party. 4.5 new I respect my immediate manager. 4.5 I am proud to work for ccP. 4.5 I respect the ceo of ccP. 4.5

Professional development is well organized within ccP. 2.9 I am satisfied with the air-conditioning at my office. 3.0 I feel that my pay is in line with the position that I occupy 3.1 communication with other offices is good. 3.1 ccP´s salary policy is fair. 3.2 2011 20092010 4.7 4.6 Lowest score 4.5 4.5 4.4 4.4 4.4 4.4 2010 4.3 4.3 4.2 4.2 4.2 4.2 4.2 4.2 4.1 4.1 4.1 4.1 4.1 4.1 4.1 4.1 Highest score 4.0 4.0 4.0 4.0 4.0 4.0 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.8 3.8 3.8 3.8 I often try to improve the ways I do my job. 4.5 3.7 3.7 3.7 3.7 3.7 3.7 3.6 I would recommend ccP as a workplace to my friends. 4.5 3.5 3.5 3.5 I am always positive towards ccP to an outside party. 4.5 I respect the ceo of ccP. 4.6 I am proud to work for ccP. 4.6

Professional development is well organized within ccP. 3.1

MY jOB I am satisfied with the air-conditioning at my office. 3.1 MOraLE sUCCEss TraiNiNG EMPLOYEE EMPLOYEELOYaLTY I feel that my pay is in line with the position that I occupy. 3.2 aPPraisaL PErFOrMaNCE MaNaGEMENTMaNaGEMENTMaNaGEMENT saTisFaCTiON EQUiPMENT COMMUNiCaTiONaNd communication with other offices is good. 3.3 aNd PrOCEssEs aNd iNFLUENCE COMPaNY VisiON MaNaGEMENT- -disCiPLiNE CEO LEad aNd COOPEraTiON aNd PErsONaL LiFE - EXECUTiVE BOard ccP´s salary policy is fair. 3.3 / WOrK EVOLVEMENTPErFOrMaNCE rEViEW WOrK ENVirONMENT aNd BUsiNEss GOaLs BaLaNCE BETWEEN WOrK - iMMEdiaTE MaNaGEr Lowest score

CCP INDEX

152Total number of pages in the Annual Report, including the cover. 40.8% Percentage of pages dedicated to Financial information compared to other information.

Number of people it takes 25to bring the Annual Report together. Depends on how many writers contribute each year.

Months is WHAT IT takes f r o m when we s t a r t discussing the issue 4UNTIL the time iT’s printed for shareholders at the Annual General Meeting.

Number of years it has been in 6 production at CCP.

Lilja Valþórsdóttir: Contact person for AR comments.