Report 2014 4 | Introduction 6 | History Index 14 | State of the Industry 16 | Industry in Nutshell 17 | The Founding Years of Studios 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 developer studios 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 Fingersoft • Hill Climb Racing Frogmind • BADLAND Rovio Entertainment • Angry Birds, Angry Birds Epic Supercell • Clash of Clans, Hay Day Two Men and a Dog • Zombie Catchers Picture: Supercell ● Boom Beach 3 THE OLDEST Finnish game companies Finnish game education has been still in existence are turning 20 this year ramping up nicely, and there (2015). Although the first commercial are now over 20 educational Finnish digital game was published institutions providing game back in 1979 and the first globally education at all educational levels. distributed game in 1986, it’s fair to Games are recognized as a form of say that from an industry point of view, culture in Finland. This recognition 2015 is also a 20th anniversary for the has positive affects not only on the whole Finnish game industry. public perception of games, but Introduction In twenty years, the Finnish game also on the attitudes of the public industry has come far from its humble sector towards the game industry. beginnings. However, figures don’t tell The Game community is supported the whole story. There are some trends by strong industry networks, that often go unmentioned, but that namely IGDA Finland, Neogames are important not just for today, but Finland, and the Finnish game also for the future. developer studios association Finland is still a country of game (Suomen Pelinkehittäjät). These developer enthusiasts. In 2014 for associations play a crucial role, for example, the Global Game Jam instance in community building, Finland event attracted almost 700 information sharing and lobbying. hobbyists to 15 sites to develop games. 4 Introduction The main purpose of this publication Pelinkehittäjät Ry (Finnish game is to provide a general overview of the developer studios assn), Invest Finnish game industry landscape. in Finland, Tekes and Ministry of Education and Culture for their The findings presented in this report support. are based on 110 company interviews and an industry database maintained Team Neogames: by Neogames. The database holds KooPee Hiltunen the basic information of 260 Finnish Suvi Latva game developer studios. In total, 53 J-P Kaleva game companies (all members of the Emma Ronkainen 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, to-date published in 2005, 2009 and 2011. We wish to thank everyone who has helped us develop this report, with special thanks going to Suomen Picture: Grand Cru ● Supernauts 5 History Picture: Fingersoft 6 ● Hill Climb Racing History 1980’s: The beginning that began in the 1980’s started to take on new forms at the turn of the decade, THE ROOTS of the Finnish game when the quick progress of technology industry were planted in the beginning enabled technologically and culturally of the 1980’s during the era of the more ambitious games. first personal computers. Despite In turn, this forced hobbyists to the scope and financial significance specialize in certain areas of game of the game development being development and to share their quite small at the time, it managed expertise with the other hobbyists. to create a base for the Finnish demo The 1990’s with its strong demo scene and game development culture. scene brought typical corporate Early experimentation in technical, elements to the hobbyist culture: commercial and cultural possibilities teams, objectives, competition and offered vital experience in the area of professionalism. It is no coincidence game development and the realities of that the oldest Finnish game studios the game market. have a strong background in the demo scene. Even today, many new Finnish 1990’s: Demo scene and the game studios are founded by teams first steps of the Finnish who either qualified in the demo scene game industry or elsewhere in the vibrant Finnish hobbyist culture. THE ENTHUSIASTIC hobbyist culture 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 a dozen studios and the industry employed almost 200 people. The downfall second half of the 1990’s is generally BY THE END on the 1990’s a considered to have been a time professional game industry had of rapid technological evolution. History emerged in Finland. There were Especially, 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 the “dot.com hype” due to the financial speculation which took place at the time. In Finland this hype had a strong mobile emphasis. The investments by Nokia in the development of WAP-protocol set the direction of the Finnish game industry far into the next decade. WAP was advertised as enabling the easy use of mobile internet. However, due to technical (poor usability) and financial (e.g. the high price of data transfer) Picture: Boomlagoon 10 ● Monsu History reasons, WAP never really became an of game development in Finland at economically profitable phenomenon. the time, despite that in the end, both platforms were to be unsuccessful. Early 2000’s: Back to the At the same time, the global basics markets for Java-based games kept AT THE START of the millennium, growing, and this helped to secure the unsuccessful investments, the high risks Finnish game industry’s strong mobile of new investments, and the general focus and prepared the overall industry deliberation of investors practically for the forthcoming industry-wide stopped investments completely. digital distribution market. Although This clearly affected the structures many of the companies of that era have of the game industry, and companies since closed their doors, their talents changed their focus from conquering are still seen throughout the industry. the world to securing organic growth and focusing on project based work. Late 2000’s: The rise of On the mobile side this meant more digital distribution cooperation with mobile operators THE RECENT growth and progress of and the aggregators who collected the Finnish game industry has been game portfolios for them. Even though based on digital distribution and the investments stopped between 2002– possibilities it created. Shortened value 2003, Nokia’s N-Gage (2003) and chains enabled by digital distribution N-Gage QD were significant enablers opened new possibilities for game 11 developers. At the same time, working to 2014, 179 game studios have been without publishers brought new founded in Finland. significant risks for games companies. A company working without a publisher Investments has to bear the costs of production DURING 2011–2013, the financial History and marketing, and also undertake success of the Finnish game industry all of the marketing and PR activities drew the attention of the international themselves. Thus, an increase in investors. This is best demonstrated possibilities lead to enhanced risk, but by the fact that during those years, also to expanded areas of expertise. investments in the industry were over $1.7 billion (€1.26 billion). The Early 2010’s: Angry Birds and biggest of these investments was the 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 (Free to Play) phenomenon launched in 2009 and AFTER digital distribution, the the start-up boom which followed in biggest and most financially significant 2011. For the first time, developing and transition in the industry has been the distributing games was also easy for introduction of the F2P model. The smaller and less well financed game best examples of the significance of studios. Consequently, between 2011 the F2P model have been Supercell’s 12 History Clash of Clans and Hay Day, whose experience in the industry, which puts success has lead the turnover of the them in a far better position than first Finnish game industry into a whole new timers. The fact that the Finnish game category. industry has been able to produce around 30 second round studios is also Mid 2010’s: Second round a clear indication of its maturity. studios and the end of the beginning A CURRENT new phenomenon in the Finnish game industry is a second round start-up boom. These studios have founders with strong prior 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 MENTIONED, the oldest existing 260 active game developer studios at Finnish game studios were established the end of 2014 in Finland.