A Different View Of The EVE Economy

With EVE Fanfest starting tomorrow I'd like to go back to last Friday's dev blog and address a point.

Let’s talk PLEX - the primary currency of the NES, the backbone of player-driven trading, and, for many, a long-term investment vehicle. It’s no secret that PLEX plays multiple roles in EVE, and right now, those roles are colliding in ways that we believe deserve both attention and action.

I was a little surprised to find out PLEX is the backbone of player-driven trading. Either I'm way out of touch or the development staff speaks a different language than I do. I suspect the latter.

To me, EVE Online has a player driven economy so naturally all trading is player driven. And quite frankly I suspect that most players do not use PLEX to purchase ISK to buy ships, modules, and ammunition. But that is the non-RMT economy. I highly suspect the author of the dev blog was referring to the sale of RMT tokens and items from the cash shop.

Back in August 2019 I decided to take a look at the split between the value of non-RMT items vs items acquired with real life money like PLEX, skill injectors, and SKINs. Six years ago the breakdown was 50.9% to 49.1% in favor of the traditional game economy, although the null sec blackout was in effect. With all the changes that occurred starting in 2022 the ratio is probably reversed. If the ISK velocity data is any indication, the percentage of the economy consisting purely from PLEX sales I imagine is still running around 20-25%.

In context, of course the phrase was describing transactions involving the New Eden Store. After all, the title of the article was "Evolving the NES: Mastery Packs, Expert Systems, and a Smarter PLEX Economy". 

Still, I was a little surprised at the wording. Normally players can ignore how much of the economy consists of RMT tokens. I really didn't expect CCP would come out and remind people of reality, especially right before Fanfest.

EVE Fanfest: Wandering Around Reykjavik (Kind of)

The last 24 hours weren't too bad. I started last night off with a trip up to the Sky Lounge, the Center Hotel Arnarhvoll's bar. Located on the top floor, the place is a nice, quiet bar with a nice view of the harbor. I did discover that years of non-drinking have taken their toll and one beer had me buzzing. Considering I had a Gul Light I think I am now officially in the lightweight category.

Afterwards I decided to take one more walk. I went over to the 10-11 shop on Austurstræti. The 7/11 equivalent is at the bottom of the hill close to the Center Plaza. Perhaps more importantly Austurstræti houses a bunch of restaurants and pubs like The Laundromat Cafe, The English Pub and The American Bar. 

The view of The English Pub and American Bar facing Parliament

Across the street from 10-11 is a nice bistro I've visited over the years. A couple of CCP devs were over in front of the place talking to people. I went in, bought a couple bottles of Fanta and some snacks, and went over and talked to CCP Convict. I had a nice chat and left him because I was starting to get cold. I left him talking to people with someone urging him inside. Hopefully he didn't stay outside much longer. If he caught a cold, it wasn't my fault.

I woke up Tuesday morning jet-lagged, sore from walking up and down Reykjavik's hills, and maybe just a little hungover. I managed to get to the Sky Lounge for breakfast at 8 am. The meal was the usual buffet type arrangement but the scrambled eggs, sausage, and bacon were all cooked well. Personally, I'll give a place an extra star if the eggs come out right.

When I got back to my room I surfed the net looking for a little news. Failing that I watched the latest antics in the WNBA drinking water the entire time, laid down for an hour, and finally felt human around noon. Which, I should add is 7 am in Chicago, meaning my body clock still hasn't adjusted.

Lunchtime meant taking a stroll to see what was built around Harpa. Back in 2018 construction equipment was everywhere. Now in 2025 I see a new hotel and some high-end stores and other businesses. At least, they looked high end from the outside. Apparently a national investment fund from Abu Dhabi bought the hotel from the original owners.

The Edition (left) and Harpa (right)

I didn't remember the Icelandic Coast Guard docking ships so close to Harpa. The ship in the middle of the picture above is the ICGV Freyja. Acquired in 2021, the Freyja was not in service the last time I visited Reykjavik. I knew the harbor area featured new things, but a new ship was not on my list.

I eventually made my way to my destination: 101 Bistro. I always try to stop in for some fish & chips (fried cod and french fries for Americans) whenever I attend Fanfest. I also had a glass of Viking so the meal cost around $38. Maybe a little expensive but I can say I didn't just eat what I normally eat at home.

Oh, and on the way back to the hotel I picked up some more soda and a Kit-Kat bar. Unlike the United States, Kit-Kats are made by Nestle, not Hershey. I never really thought the two chocolates were that different until I ate my first Kit-Kat in Bulgaria. Ever since, I try to pick up a Kit-Kat whenever I travel abroad.

Now it's time to wrap up my first full day in Reykjavik. I need to do a little research before Thursday and staying in and not drinking might be smart. Hopefully early registration will occur Wednesday.

Travel Day To EVE Fanfest 2025

I succeeded in making my way to the Center Hotel Arnarhvoll overlooking the Harpa convention center and concert hall in Reykjavik. My last trip to the world's northernmost capital city was seven years ago, which coincidentally was the last time EVE Fanfest was held in Harpa. I thought I'd record some of the differences this year compared to my seven previous visits. And perhaps a few people might find something useful to take away.

The first thing I noticed was the ease in which I could obtain electronics designed for European electrical outlets. Going back to my travels to Bulgaria back in 2010 I always found finding adapters a pain. This year all I had to do is do a quick search on Amazon and I received everything in a day. I was even a little surprised because one piece arrived the same day I placed the order. Absolutely amazing compared to my previous travel experiences.

The second is inflation has really hit. The biggest piece of sticker shock was the trip to and from O'Hare Airport. The price has increased 50% since my last trip to EVE Vegas. Now, I have to admit some things have changed. The tip is probably included now because I didn't even have to pull out my credit card. All the charges were pre-handled. In return I received some piece of mind because I was receiving text messages letting me know they were setting up the trip. The driver arrived as I was putting the lock on my checked luggage. Really nice service.

Did I mention I flew Saga Class on Icelandair? Okay, the entertainment system was out for the trip. But I credit the seating for my ability to sleep on the flight. Sure, I didn't sleep well but I did sleep which made a difference for running around in the afternoon. I missed the meal but can testify the chocolate chip muffin was first rate. But the biggest improvement was probably access to the lounge. Icelandair doesn't have a lounge of its own in Chicago but I was able to access the one run by the Polish airline LOT. I had gotten through security and customs a lot faster than I thought I would and had three hours to kill. I really appreciated the lounge LOT runs and can't wait to see Icelandair's lounge on my way back.

My first roadbump occurred in the LOT lounge when I realize I forgot my charging cable for my phone. I have an old phone that uses a Type B micro cable. I was hoping to find one when I got to Keflavik airport as I sometimes think Keflavik is more shopping mall than airport.

As I hoped, Keflavik delivered. The airport has an electronics store, Elko, that has a wide range of cables, outlets, headphones, etc. Not only did the shop have the old cable but is located right by the luggage carousals so getting my replacement was really convenient. Plus, I didn't have to worry about recharging my phone's battery meaning I didn't need to buy a watch.

At this point I should make an observation. The reports of EVE's demise will only hold water once the customs officials don't recognize the mention of EVE Fanfest. Once again, telling the person checking my passport I was in the country to attend the convention was all the explanation required.

Speaking of Keflavik, the luggage unloading really impressed me. By the time I walked around the airport and did my impromptu shopping almost everyone had picked up their luggage. I'm used to O'Hare, one of the world's busiest airports. Flying into a much smaller airport brought some benefits.

Now, I did some trip preparation which paid off when arranging for my bus trips to and from Reykjavik. I'm carrying a notebook and on the first page is my travel information. Things like flight times and hotel details. Well, I'm not very good speaking Icelandic so I resorted to pointing to the notebook when explaining where I was going.

I was blown away when I reached the hotel. My 7 previous trips had prepared me to wait until check-in time unless I took advantage of a "early check-in" offer. My plan was to avoid the wait by taking a 10:15 pm flight out of Chicago, arrive at the hotel around 11-11:30 am, drop off my luggage and eat at The Laundromat Cafe. I walked into the lobby with an EVE playing couple a little after 11:30 am and we went up to the counter. Imagine my surprise when the nice young lady told me my room was already prepared and I could check in. I quickly took advantage, got up to my room, unpacked and took a shower, and was out the door walking around Reykjavik by 12:30 pm.

Needless to say, I accomplished the mission and found The Laundromat Cafe. And yes, the cheeseburger was just as good as I remembered although I now regret ordering a milkshake as well. I didn't know the exchange rate and my cheesburger, fries, and Fanta only cost around $30. I could have had a milkshake for only $4 more.

I picked up some ibruprofen on the way back from the hotel at a pharmacy. Unlike the United States where just about everywhere sells the drug, Europeans require going to a pharmacy where the drug is sold over-the-counter.

Armed with a full belly, some pain reliever, and a big bottle of water, I returned back to the hotel, took a nap, and wrote this first post from Reykjavik. Technically I still have 2 hours to go before my first 24 hours is complete, but I want to check out the hotel bar tonight. Tomorrow, I imagine the attendees will begin trickling in and I'll want to find some EVE players out and about drinking and eating as attendees of EVE Fanfest are wont to do.

New Changes To PLEX?

CCP Games announced the company was making a change in EVE Online's in-game New Eden Store on the Friday before Fanfest. The subject of concern is the the venerable currency known as PLEX. CCP has indicated the company has plans to change the system.

In 2008 CCP introduced an RMT token into EVE known as the Pilot's License Extension. An RMT token refers to a virtual item or currency in a game exchangeable for real-world money or vice versa. "RMT" stands for Real Money Trading, which involves transactions where players buy or sell in-game assets, accounts, or currency using actual money.

For example, in games like EVE Online, PLEX can be considered an RMT token because it allows players to legally trade in-game currency for real-world money value within the game's official system. However, unauthorized RMT activities outside the game's ecosystem are against the terms of service and can lead to penalties including account termination.

The original purpose of PLEX in EVE was to provide players with a way to pay for their game subscription using in-game currency. Players could purchase PLEX with real money and then sell it on the in-game market for ISK (Interstellar Kredits). The system allowed players to effectively fund their subscription through gameplay, creating a bridge between real-world money and the in-game economy. 

PLEX remained relatively unchanged until May 2017. The introduction of free-to-play gaming in the form of alpha accounts was introduced in Ascension release in November 2016.

However, the planned in-game cash shop currency, Aurum, was unpopular and ditched in favor of a revamped PLEX. On 9 May the following changes were implemented to PLEX.

1. PLEX Denomination Change: The shift from 1 PLEX to 500 PLEX was introduced to provide more flexibility for players. This change allowed smaller transactions and made PLEX more versatile for in-game purchases.

2. Aurum Removal: Aurum, the previous in-game currency, was phased out. Players with Aurum balances were compensated with PLEX, ensuring a smooth transition.

3. New Eden Store Updates: The New Eden Store was revamped to accommodate the new PLEX system, enhancing the shopping experience for players.

Despite some spikes, the price of PLEX remained relatively stable in the following 4 1/2 years, only rising by 8%, from 2,549,000 ISK on 9 May 2017 to 2,752,000 on 1 January 2022. 

The year 2022 was in some respects a watershed moment in the history of CCP Games. With revenue failing to keep up with costs, CCP made two decisions that impacted the PLEX market. First, as Friday's dev blog noted, CCP began introducing EVE Store products to the New Eden Store. According to the article, doing so allowed players to purchase them for PLEX and created a sort of parity between the stores. In other words, the company increased the uses, and thus the demand, for PLEX from those who purchased the currency with ISK.

Next, in May 2022 CCP raised prices. The monthly subscription cost for Omega accounts was raised for the first time since 2004. For example, the 1-month Omega subscription increased from $14.95 to $19.99. Discounts were offered for longer subscription tiers, such as 2-month and 24-month plans. The pricing and tiers for PLEX bundles were also restructured and the prices overall raised. In other words, higher real world PLEX prices resulted in an incentive to not purchase PLEX and cut down on the supply.

Rising demand plus lower supply usually means rising prices. And as I learned over lunch at a soup joint in Reykjavik at Fanfest in 2014, lower PLEX sales for CCP and game time code sellers as well. Apparently most people don't have a plan to spend $50 on EVE ISK and get as much as they can. Instead, players will figure out how much ISK they need and spend the minimum amount of real world currency to obtain the amount. Which means the higher the in-game ISK price of PLEX is, the less money CCP will reap from players buying ISK for dollars/euros/pounds/etc.

How bad was the inflation rate for PLEX? From the beginning of 2022 to the launch of the Equinox expansion 2 1/2 years later the average price of PLEX in The Forge rose 87.5% to 5,160,000 ISK. A commodity that had risen in price by 0.15%/month for 55 months was now rising in price an average of 2.9%/month. 

The blaring issue with the supply problems with PLEX makes the next feature introduced in Equinox rather puzzling. The SKINNR system, the system in which players can design custom SKINs for their ships, requires PLEX. For those who don't want to wait, more PLEX is required. And yet, I didn't see any effort to incentivize the purchase of PLEX to put on the market with real world money. But perhaps surprisingly the average price of PLEX in The Forge has only increased 18%, up to 6.1 million ISK, in the 10 months since the launch of the Equinox expansion.

According to Friday's dev blog, here are the steps CCP has undertaken to address the situation.

Here’s what we’ve done so far:

• AIR Daily Goals now include PLEX as a permanent reward, creating a steady stream of accessible PLEX for active players.
• Seasonal events increasingly feature PLEX in their seasonal reward tracks.
• Occasional PLEX gifts mark special milestones and in-game events.
• Mysterious GalNet Crates I and II, featured in Twitch Drops and tradeable on the in-game market, also offer a chance at PLEX.

These steps help, but we know they’re not enough.

We’re exploring additional tools and mechanics that can rebalance the flow of PLEX, making it feel less like a speculative asset and more like a practical, fluid currency that powers your in-game choices.

I have additional thoughts about what I read. I'm also sure CCP Games will provide more details in the Fanfest presentations next week. But for now I really do need to pack everything now that my laundry's done. Which reminds me, I really do need to check out the Laundromat Cafe once I get to Reyjavik. 

Thoughts Before Travelling To EVE Fanfest 2025

Next week I'll post from Reykjavik as I attend my eighth EVE Fanfest. Somehow I've managed to attend all the events held in the Harpa concert hall and conference center. The facility opened in 2011 and Fanfest was held in the building from 2012-2018. And, like myself, Fanfest returns in 2025.

I had heard stories and talked to people who made the pilgrimage to the northernmost capital city on Earth who had quit playing EVE but wanted to meet up with old friends from the game. This year I'm not exactly in that situation but for the first time in my 8 trips to Reykjavik, 4 trips to Las Vegas and one trip to Toronto I'm not excited about playing EVE Online.

Up until the beginning of March I was getting back into the swing of the game. My planetary interaction colonies were doing well and I was looking at expanding from 6 planets to 12. I was involved with public contracts in Minmatar space and had started to expand into making runs to Dodixie. I had done one level of Project Discovery every day for the first two months of the year. I even manufactured a Porpoise and was looking for fits.

And then I ran across a video. The Oz did an interview with CCP Rattati, the game director for EVE Online. Apparently the idea of selling ships and linking the sale to the in-game corporation Paragon is not dead yet. One of the justifications to selling the ships was to aid new players. Invoking Malcanis' Law to sell things to new players when they were down? Something just snapped and I've barely logged into the game since.

But I still have presentations I want to see. Perhaps the news for the summer expansion will renew my interest. Or perhaps moving onto EVE Frontier is the proper course for me. I almost feel like I'm going to a timeshare presentation except the object is my gaming time instead of a time to spend at a vacation resort. Either way I really do need to pay attention to the Fanfest content this year.

And even without the convention I would want to walk around downtown Reykjavik and see what, if anything's, changed after the pandemic lockdowns. I'm getting old so I probably won't walk up to Hallgrimskirkja, the big cathedral sitting on the hill overlooking the city, but I probably will manage to walk around and get a sub. 

Maybe even one of Reykjavik's hot dogs. The last time I was in Reykjavik the the Bæjarins Beztu Pylsur hot dog stand was closed (or at least moved) due to construction. I'd like to visit the stand at least once this trip.

I also want to make a trip to The Laundromat Cafe. If Trip Advisor is accurate the place is still open. Or has it reopened? Either way I really would like to make a stop in the place as well.

Those are my thoughts for now. Unless something comes up in the next 48 hours or so my next post will come from Reykjavik. Now I have to finish up the workday, check over my electronics, and pack.

Initial Impression Of Cosmic Exploration

On Tuesday Final Fantasy XIV's patch 7.2.1 launched, introducing Cosmic Exploration. I spent a couple of hours playing last night and thought I'd just give a couple of thoughts.

Our guide through the experience is Namingway, a character first introduced to the Final Fantasy franchise in Final Fantasy IV. We meet up with Namingway to start our journey in Old Sharlayan (X:12.6 Y:13.6) with a quest named A Cosmic Homecoming.

The requirements to get into Cosmic Exploration are two-fold. First, complete Endwalker. Second have a Discipline of Hand or Discipline of Land (crafting or gathering class) of level 10 or higher. In other words, the feature is designed to help high level players level non-combat classes. Best yet, to do so without flooding the marketboard with a lot of low-level items no one will want to buy.

Cosmic Explorations has a feature I wish the allied tribal quests had: a feature to look back on the construction progress. I know that MassivelyOP has reported otherwise, but as far as I know no server has managed to reach the end of the group construction content. Looking at the server list no server through the first two days is more than halfway through the third construction phase.

But honestly, what Cosmic Exploration is about is the Cosmic tools. Players can obtain the initial version of the tool from Researchingway at X:21.1 Y:21.8. To level up the tool to the next version, a player needs to visit Researchingway and hand deliver the research data acquired by completing various stellar missions. Oh, and unlike previous relic tool grinds, players do not need to equip their Cosmic tool while levelling. While equipping the tool produces greater rewards, just possessing the tool is enough.

When thinking about stellar missions, think fieldcraft leves. I've only done botanist missions so far but Cosmic Exploration has four levels of missions, ranging from level 10 up to level 100. 

Before I forget, Cosmic Exploration has FATEs. Giant FATEs. 

Large-scale projects will be triggered as milestones are reached in cosmic exploration.

When a project has been scheduled, a notification will be issued at the top of the screen, and after an allotted time has passed, the project will automatically commence. In order to participate, press the "Join FATE" button while in the designated location.

When a project has been completed, progress will be advanced to the next stage and changes to the field will be reflected. Participants will receive rewards dependent on contribution.

I have participated in a large-scale project. A very crazy time with both crafters and gatherers getting together to complete the FATE.

I should add another type of large group activity exists: Mech Ops. One player gets to climb into a giant mech and blast big rocks into little rocks while everyone else uses a special tool to extract the valuable ore thus exposed. Once I got the hang of what I was supposed to do I had fun.

I was really happy to discover the Exotablet. No running back and forth to the central hub to turn in missions. Just click on the little planet icon to both receive and turn in missions. The little flying saucer that comes out and scans you to determine if you've met the requirements to complete the task at either bronze, silver, or gold level is a nice touch. After about four hours of play I still get a kick out of seeing the little spaceship scan me.

When a tool is ready for an upgrade the Exotablet gives a visual indicator. The bottom left icon displays the progress on a tool. Very handy. And the icon with the question mark has a pretty comprehensive help feature.

The rewards aren't the greatest, but then again I haven't purchased the new dyes. I have my island sanctuary producing enough cowries to keep me stocked with the dyes introduced during the Ishgard Restoration so I plan on buying the new dyes. 

• Carmine Red Dye
• Neon Pink Dye
• Bright Orange Dye
• Neon Yellow Dye
• Neon Green Dye
• Azure Blue Dye
• Violet Purple Dye
• Metallic Pink Dye
• Metallic Ruby Red Dye
• Metallic Cobalt Green Dye
• Metallic Dark Blue Dye

For those looking at the gear from the vendor, I think the Carbonweave gear from Heavensward looks a little snazzier while maintaining the same general style.

And finally Cosmic Exploration offers Cosmic Fortune, a roulette type game. Tickets are available from Orbitingway (X:21.8 Y:21.1) and cost 1000 lunar credits. So far I haven't picked up a rare item but I suspect I'll play long enough to win some nice items.

Overall I suspect I'll find Cosmic Fortune a very grindy way to get my Cosmic tools. But a lot of players were demanding grind so apparently Yoshi-P listened. I also have to say the first area on the moon, Sinus Ardorum, does look nice. Hopefully the sight doesn't get too old as I suspect I'll spend a lot of time running through Cosmic Exploration.

System Requirements For EVE Frontier And EVE Vanguard: Fanfest 2025 Edition

CCP Games, due to the nature of its games, has a smaller-than-normal potential player pool. The Icelandic game studio is very fond of full-loot PvP sandbox games. The company's flagship game, EVE Online, fits the description and a game under development, EVE Frontier, falls within the same genre. Which means the studio must reduce friction to player interest in other areas to build up a healthy player base for its games.

Heading into next week's EVE Fanfest CCP will showcase two games under development, EVE Frontier and a first person shooter, EVE Vanguard. I thought I'd post the known system requirements for the two games and compare them to the Steam Hardware & Software Survey for March 2025. Will the hardware requirements keep the number of potential players down?

First up is EVE Frontier. According to the FAQ, the minimum and recommended requirements are the same as EVE Online's. Makes sense since both use the Carbon engine.

Minimum Requirements:

• OS: MacOS or Windows 10 64-bit
• CPU: Dual Core @ 2.0 GHz
• RAM: 4 GB or higher
• Video: AMD Radeon 5450 or NVIDIA GeForce 420 or better with at least 1024 MB VRAM

Recommended Requirements

• OS: MacOS or Windows 10 64-bit
• CPU: Intel i7-7700 or AMD Ryzen 7 1700 @ 3.6 GHz or greater
• RAM: 16 GB or higher
• Video: NVIDIA Geforce GTX 1060, AMD Radeon RX 580 or better with at least 4 GB VRAM

As expected, the operating system is pretty universal amongst Steam users. Ninety-six percent of Steam users run either Windows 10 or 11 and another 1.5% run a Mac operating system. The CPU speed also should not pose an issue. For the minimum requirements, over 99% of Steam users have CPUs at least 2.0 GHz or faster. The recommended speed, though, is a little restrictive. While Steam doesn't use 3.6 GHz as a breakpoint, only 2.5% of Steam users own a CPU 3.7 GHz or faster.

The news is better on the number of physical cores. Basically only 0.03% of Steam users own a computer with only 1 processing core. For the recommended requirements, the listed cards have 6 cores. A total of 79% of Steam users own cards with 6 or more cores.

The amount of RAM required to run the two games is also a bonus. For the minimum required 4 GB of RAM, 99.97% of Steam users have the required memory installed. For the recommended amount, 85.5% of Steam users have 16 GB of RAM in their computers.

To give a hint as to whether the average Steam user has a video card capable of running EVE Frontier, the median user owns a NVIDIA GeForce RTX 3060. 94.9% of Steam users have the 1 GB of video RAM required to run the games at minimum level and 84.9% at the recommended level.

When we get to EVE Vanguard the hardware requirements are a little higher.

Minimum:

• Requires a 64-bit processor and operating system
• OS: Windows 10 64-bit (21H2/19044) / Windows 11 64-bit
• Processor: Intel i5-8400 / AMD Ryzen 5 1600X
• Memory: 16 GB RAM
• Graphics: NVIDIA RTX 2060 / AMD Radeon RX 5700 XT

Recommended:

• Requires a 64-bit processor and operating system
• OS: Windows 10 64-bit (Latest) / Windows 11 64-bit (Latest)
• Processor: Intel i5-11600K / AMD Ryzen 5 5600X
• Memory: 16 GB RAM
• Graphics: NVIDIA RTX 3080 / AMD Radeon RX 6900 XT

The processors listed on Steam are a little faster than those required for Online & Frontier but can use the older i5 processors instead of the newer i7 & i9 processors. Still the processor speeds appear to be a touch faster for the system minimum (2.8 GHz) and a little slower at the recommended level (3.6 GHz). Still, only about 32% of Steam users have the required hardware to run Vanguard at minimum specs while the recommended processors are the same as EVE Online's.

Another difference is the required amount of RAM for the minimum requirements. Don't try running Vanguard with anything less than 16 GB. While 84.9% of Steam users already have 16 GB of RAM installed a small proportion of EVE players trying to play Vanguard may wind up with an unpleasant surprise.

And finally, as one might expect from an FPS game, the video card required to play Vanguard is much more powerful. The AMD Radeon RX 6900 XT listed on Steam, for example, has 16 GB of VRAM while the NVIDIA RTX 3080 comes with 10 GM & 12 GB variants. Overall, probably only 30% of Steam users own the recommended hardware to run Vanguard but nearly 2/3 can run the game on the minimum specifications.

I didn't realize until writing this post about just how much more powerful a computer needs to be to run EVE, whether Frontier or Online, compared to a FPS game like Vanguard. How much does will that cut down on adoption of Vanguard by EVE players. After all, buying a Playstation 5 is only $500 or so. Purchasing a computer just to run Vanguard seems like a bigger ask.

Trying Out Blue Mage

Tuesday is the launch of Final Fantasy XIV's patch 7.21 and the introduction of Cosmic Explorations. But before I dove headlong into crafting and gathering I wanted to level up my chocobo companion. I didn't want to do a boring FATE grind so I went ahead and started up another job: blue mage.

A blue mage in FFXIV is a limited job that learns abilities by mimicking enemy attacks instead of leveling up traditionally. Unlike other jobs, blue mages gain spells by observing monsters use them and then defeating those monsters. Considered a limited job, blue mages can't queue for regular duties but can participate in special Blue Mage-exclusive content. The job features extreme burst damage, meaning the blue mage can do some content otherwise inaccessible. Perhaps more importantly for my purposes, the grind should help level up my companion, as I could get two week's worth of challenge log experience for my chocobo.

When I started the quest to unlock the job, Out of the Blue, I received a pleasant surprise. Blue magic comes from the Whalaqee people of the New World. So perhaps for all the people interested in the story looking into blue mage at the end of Dawntrail is a logical next step? Well, that's my story and I'm sticking to it.

Blue mage does have a semi-traditional series of job quests every 10 levels. However, the reminder to do the next quest in the series doesn't pop up automatically like for the other jobs. Also, one can purchase a new spell every 10 levels, at least in the first 50 levels. The quests and spells are obtained in Ul'dah.

I know that guides are out there suggest the best way to level is obtain a certain spell that throws fish and abuse a mechanic. But as part of my reason for playing blue mage is to level my companion, I just took the sortable spell list and started working my way up the levels. The method seems to work as I now have 24 blue mage spells in a week.

I have to admit I'm actually looking forward to running dungeons solo using the blue mage job. One of the spells needed to advance the blue mage quest line required defeating Galvanth the Dominator, the final boss of The Tam-Tara Deepcroft. While I failed to even reach Galvanth the first time I tried at level 26, defeating the creature from a Lovecraftian nightmare was very satisfying at level 32.

My goal for now is to reach level 50 by the end of the weekend so I qualify to participate in the Masked Carnivale. One of my weekly tasks is collecting Allied seals in order to purchase aetheryte tickets. Usually I just go out, hunt down the elite mark from the hunting board, and collect 100 Allied seals, which brings in 20 tickets. If I can just teleport over to Ul'dah and grab a couple hundred seals in 10 minutes every week I'll consider the effort leveling blue mage a win.

My Trip To EVE Fanfest 2025: Paid For By Me

I know that I write a bit about finances of game companies, but when I created The Nosy Gamer 16 years ago I never thought things would get as crazy as they are getting now. Crazy, as from a personal perspective. The issue is attending EVE Fanfest 2025 in two weeks. I looked at the schedule and I plan to attend a lot, if not most, of the EVE Frontier presentations.

EVE Frontier, for those new to the project, plans on using Web3 technology. Forget all the libertarian talking points and theory about the subject. When most regular people find out that the blockchain and cryptocurrencies are involved, they tend to think of people like this guy.

FTX Founder Sam Bankman-Fried - Photograph: Faith Aktag/Getty Images

Sam Bankman-Fried, often referred to as SBF, is an American entrepreneur who founded the cryptocurrency exchange FTX and the trading firm Alameda Research. At his peak, he was considered a major figure in the crypto industry, even ranking among the richest Americans. However, his empire collapsed in November 2022 when FTX filed for bankruptcy amid allegations of fraud.

In December 2022, Bankman-Fried was arrested and later convicted on multiple charges, including wire fraud, securities fraud, commodities fraud, and money laundering. In March 2024, he was sentenced to 25 years in prison and ordered to forfeit $11 billion. His downfall has been compared to some of the biggest financial scandals in history.

The circle of legal action concerning Bankman-Fried didn't just engulf his confederates. Several high-profile celebrities have been sued in connection with Sam Bankman-Fried and the collapse of FTX. The lawsuits allege that these celebrities promoted FTX and misled investors. Some of the notable names include:

• Tom Brady (NFL quarterback)
• Gisele Bündchen (supermodel)
• Larry David (comedian and actor)
• Stephen Curry (NBA player)
• Shaquille O’Neal (NBA legend)
• Kevin O’Leary (businessman and TV personality)
• Naomi Osaka (tennis star)
• Trevor Lawrence (NFL quarterback)
• Shohei Ohtani (MLB player)
• David Ortiz (MLB legend)
• Udonis Haslem (NBA player)
• Golden State Warriors (NBA team)

The only person not fooled by Bankman-Fried, or at least lured by the millions SBF threw around, was Taylor Swift. So the record that crypto-bros will pay people to say nice things about a project to fool the public is pretty much a given at this point.

One of the goals of my trip is to act more like Taylor Swift and less like Tom Brady where EVE Frontier is concerned. Attending all the presentations about the project to try to give myself a good base about the game is a good start. Right now I don't even possess a level of knowledge where I can ask intelligent questions about the game. That I am in the process of changing.

The other point is actually more relevant to the trip. If I come out and write nice things about Frontier, I don't want people to say I am bought and paid for by CCP Games to have the opinion. Well, I know that may happen anyway. After all, crypto-bros don't care about how much they have to pay for good reviews, right? But I want to make any such accusation as hard to stick as possible. Which means my trip to Iceland this year is a little more expensive than it otherwise might be.

For some reason I'm considered some sort of gaming journalist, at least by someone over at CCP Games. Possibly because I was on a list when I got a press pass working with Matterall and Talking In Stations at Fanfest back in 2018 and my name probably wasn't taken off. Out of date lists for the win!

I don't know how many people realize, but most game companies will pay for games journalists to attend events and CCP is no exception. But that caused a problem, because now that CCP Games is one of those evil corporations run by cryptobros, taking advantage of the practice would probably discredit any good things I might find.

I made the most of the situation. Instead of flying economy class for a 4-day trip, I'm flying out Saga Class for a 6-day trip. Back before the pandemic CCP had a deal with Center Hotel Plaza and their guests would stay there. Now with the move of CCP's offices out near the airport the company may be using, the trip to the venue might really be long and inconvenient. Instead, I am staying at Center Hotel Arnarhvoll. Right across the street from Harpa, the venue hosting the convention.

Along with a couple of other perks the media gets I'm abstaining from I think I'm inoculating myself from charges of being bought and paid for. However, if I do somehow wander into the press area and grab a blueberry muffin or bag of chips I'll make sure to record it as part of my experience. Although I'm pretty sure the price to purchase my integrity is a lot higher than that.

My EVE Fanfest 2025 Schedule

Things have definitely changed with EVE Fanfest. Gone are the days I was lucky to get a schedule of events a day in advance of the start of the convention. Today CCP released the on-site schedule so I once again get the opportunity to pick out my own schedule of what to view. Oh, all times are EVE/UTC. Funny how those times line up.

Thursday, 1 May

On Thursday, I have a tough choice of going out to breakfast and writing my traditional post about CIG's financial performance for April or going to see Rahne give the convention's first presentation, "Weaponizing EVE for Good!" From 10:00 to 10:45 she'll give a talk about some of the initiatives in which players help people. While I might go just to find out if Paragon SKINs provide the same combat benefits as store-bought SKINs, those new to New Eden might want to find out not everyone in EVE is a cold, cruel bastard.

I might attend the player-presented session at 11:00, "Third-party Tools, ESI, and You!". But then again I 

The first must attend session, "Upgrading CARBON to Python 3", occurs at noon. Given by CCP Apona, I as much want to find out when Tranquility will receive the upgraded CARBON engine currently powering EVE Frontier.

I then get a few hours to write until 16:00 and the "Black Holes" presentation. I know, the EVE Frontier Hackathon Results Presentation is occurring from 13:00 - 15:00. But that is on a live stream and I think I'll have time to watch later. But given the prominence of black holes in the formation of the EVE Frontier universe, I need to find out what is in the presentation.

Friday, 2 May

Now, all the presentations on the main stage of Harpa are currently scheduled to be streamed. That leaves me available to attend the EVE Frontier presentations.

10:00 - 10:45 - Eldborg - The Welcome Ceremony is first up. Since I am staying across the street from Harpa, I don't have much of an excuse to miss the opening ceremonies.

11:00 - 11:45 - Silfurberg - Frontier Economics: A Small Open Economy Perspective. Presented by CCP Kalihra, the talk is an overview of the Frontier team's learnings so far and the road ahead. "As we open the Frontier Economy we will open the door to new opportunities and face new challenges. We will discuss what theory can tell us about what to expect." I'm pretty sure the word "economy" doesn't exactly mean what gamers expect.

12:00 - 12:45 - Silfurberg - EVE NET - Presented by CCP Raudur & CCP Sondheim, the session will explain what is EVE NET and how it powers on-chain interactions, smart items, and player driven systems in EVE Frontier.

13:00 - 13:45 - Silfurberg - Carbon – Opening the Future: Our Journey to Open Source. I guess the title says everything about the presentation as the description only lists CCP Tuxford's name. I guess we're safe as long as no big red buttons are present.

14:00 - 14:45 - Silfurberg - Physics of the Frontier. CCP Wizard is presenting an overview of the physics engine used in EVE Frontier and how the engine differs from the one in EVE Online. Of all the Frontier presentations this is the one I hope winds up on YouTube. I have the feeling the notes I take won't be comprehensive.

15:00 - 15:45 - Break - Yes, I'm going to try to grab a bite to eat before the EVE Keynote.

16:00 - 17:00 - EVE Keynote - Eldborg - Presented by an ensamble cast (CCP Okami, CCP Burger, CCP Hellmar, CCP Orca, CCP Rattati, and CCP Collins), the EVE Keynote is always a must attend event. 

The past, present and future of New Eden. Join CCP Games developers live from EVE Fanfest for the latest on EVE Online - including an exclusive first look at this summer's expansion - plus exciting updates on EVE Vanguard, EVE Frontier, and EVE Galaxy Conquest.

Saturday, 3 May

I'm going to leave myself time to write and eat breakfast on Saturday morning and begin my convention day with the EVE Frontier Keynote.

11:30 - 12:15 - Norðurljós - EVE Frontier Keynote. Presented by CCP Goodfella, CCP Overload, and CCP Jotunn. The session is advertised as:

Get your first look at EVE Frontier, a new experience in the EVE universe. In this keynote-style presentation, the team will lift the curtain on the game's setting, core ideas, and the vision behind the project.

12:30 - 13:45 - Eldborg - EVE Summer Expansion Keynote. Presented by CCP Okami, CCP Mercury, CCP Nomad, CCP Tiger Shark, and CCP K1P1, the description of the session reads [REDACTED]. This is probably the biggest session next to the EVE Keynote.

14:00 - 19:45 - Break - I know CCP is holding two sessions for attendees to ask questions about the summer expansion, but those sessions usually are painful to attend. If I go back to my hotel room to write I can watch them there. Plus, dinner and probably a nap are in order before the final event.

20:00 - 01:00 - Party at the Top of the World - I'll be at the party for an hour or two as I always want to see the company's employee band. 

A pretty jam-packed time. Honestly a lot better schedule than the last 2 or 3 Fanfests I attended. Perhaps the big change is wanting to attend as many EVE Frontier sessions as I can. Now all I need to do is get to Reykjavik without getting lost. As this is my 8th Fanfest, I should manage.

My First Day In EVE Frontier's Cycle 3

When the subject rolls around to EVE Frontier, I maintain that for the project to succeed, Frontier must be a good game that happens to use blockchain technology, not a blockchain game. One day I will explore the difference, but not today. Over the weekend I blocked out a little time to play in the alpha's third cycle.

My goal for this cycle is to learn how to build bases and use the structures provided in the game. No more searching out an NPC station shortly after I log in. I'd actually learn to use the game mechanics and systems. A task made much easier by a player who came up with a relatively comprehensive guide to getting started. At least, comprehensive enough for me to get started.

The game in its current iteration places the player in space in a ship in front of an asteroid. Of course, this is a trap as I haven't figured out a way to return to that starting location. Oh, did I mention one of the differences between EVE Online and Frontier is the lack of bookmarks in Frontier? So I filled up my cargo hold with ore and searched out a place to build my structures.

According to the guide, players should build structures intended for long-term use at either a planet, moon, or some other type of celestial like a star gate. But a very important note is to write down the location where the base is built. The UI does not contain an Excel spreadsheet identifying all the  objects located on grid, much less the solar system. Which explains how I lost my first structures. I couldn't see them as I scanned my camera around. So I warped off to another moon and had success. The moon is easy to remember for any EVE veteran, planet 4, moon 4.

I wanted my base to perform three functions before I logged off Sunday: manufacturing, reprocessing, and ship fitting. The first two were addressed in the starting write-up. At least in this cycle, filling up my cargo hold with the ore staring me in the face when I first entered the game provided enough material to construct reprocessing and manufacturing facilities. That was fast!

My next two immediate concerns were fuel and mining crystals. Unlike in Online where ships operate on energy generated using advanced technology indistinguishable from magic, ships in Frontier operate on fuel. Thankfully my little starter ship runs on fuel produced by water. And, water is a plentiful side-product of the reprocessing process.

Mining, well at least the basics, work the same for brand new players. Take ship, fly up to a rock, and start up the mining laser. The differences end there. For one, new players in EVE have civilian-grade mining lasers. The brand new player in Frontier gets a laser with 5 mining crystals. And if everything works correctly a new player doesn't have to suicide in order to get to an NPC station to get a new rookie ship.

A big difference in Frontier is that building a reprocessing and a manufacturing structure near an asteroid is the efficient way to mine quickly. The steps are simple.

1. Start mining laser
2. Transfer ore into the reprocessing structure
3. Reprocess the ore
4. Move the water created into the manufacturing structure
5. Make fuel if needed

That's right, a brand new player can reprocess and manufacture things in a belt. And reprocessing the ore and removing the water is effectively the same as using an industrial command ship in EVE to compress the ore to make it easier to transport.

After filling up my cargohold, I wound up warping back to my moon base. Unlike in EVE, I had to use the in-game map. I zoomed down to the planet my moon orbited, selected the moon, and warped to my base. Landing 7-10km away is a bit tedious, but my starter ship is pretty zippy and doesn't handle too badly. I think the handling is partially due to Frontier utilizing a 1/4 second server tick compared to EVE's 1 second server tick.

The manufacturing structure I could build as a 5-minute old player only can produce one object at a time, but after a couple of minutes I had more mining crystals and enough fuel to avoid having to worry about running out.

I needed two different types of ore to do my base building, so I travelled to another belt and set up the process again. Well, not immediately. Seems the beginner ore I used isn't found in the second belt. So I wound up warping back to the first belt, filling my cargohold with the required ore, then travelled back to the new belt.

The end of completing this first objective of building a base at a moon was rather anti-climatic, to be honest. I misread something and instead of mining enough for 8 steel plates, I mined enough for 800.  I wound up chuckling in real life and built the refuge, the object that allows ship fitting in space.

I should add that learning how to effectively mine, locate bases, build ship, etc., isn't just a good idea. Players basically need to learn how to do all these tasks to escape the starter constellations. The starter constellations, at least in this cycle, appear rather safe. Perhaps all the experienced people are already out in the wider galaxy leaving me a constellation all to myself. But while I didn't see another player in my few hours time playing on Sunday, I did see the remains of a base someone had built.

I think for now I'm just going to stay in my nice little relatively safe location and learn the mechanics of the game. After all, the game is still in early alpha and the universe will wipe regularly. Why go out and build up material possessions that CCP can take away when I can build up knowledge that the developers can't.

I Have My Ceremonial Healing Set

Last week I poked through the gear wall in Dawntrail's patch 7.2 with drops from The Underkeep. On Sunday I smashed the wall as I finished crafting the Ceremonial healing set, the IL 740 crafted gear used by Final Fantasy XIV's raiders to begin running patch 7.2 raid content. Given all the running around I had to do, I'm happy I managed to acquire the gear only 5 days after all the hardcore raiders did.

The set consists of 11 pieces: a weapon, 5 main pieces (head, body, hands, legs, feet) and 5 accessories:

• Ceremonial Wand
• Ceremonial Hood of Healing
• Ceremonial Tunic of Healing
• Ceremonial Gloves of Healing
• Ceremonial Hose of Healing
• Ceremonial Thighboots of Healing
• Ceremonial Earring of Healing
• Ceremonial Necklace of Healing
• Ceremonial Bangle of Healing
• Ceremonial Ring of Healing
• Ceremonial Ring of Healing

The materials for crafting fell into three main categories: existing gatherables, patch 7.2 gatherables, and duty materials.

The first group was easy since I'm a pack rat and had most of them lying around the cottage. The list consisted of:

• Levinsilk (5)
• Gargantua Hide (16)
• Acacia Bark (4)
• Raw Black Star (6)
• Magnesia Powder (8)
• Claro Walnut Log (20)
• Yak T'el Spring Water (6)
• Pearl Grass (6)
• Wind Parsley (6)

Next up is a sub-section of the existing gatherables, the aethersands:

• Mythloam Aethersand (5)
• Mythroot Aethersand (3)
• Mythbrine Aethersand (3)
• Sungilt Aethersand (6)

Aethersand is acquired in two ways. The first is through an advanced gathering mechanic known Aetherial Reduction. The other is through going to a vendor and purchasing them using orange gathering scrips. The Sungilt Aethersands cost 100 orange scrips while the others cost 200 orange scrips each. All told, that's 2800 orange gathering scrips, or about 3 weeks worth of scrips from doing the custom deliveries for Nitowikwe and Margrat.

Up next were the new materials gatherer from the new Folklore nodes introduced in patch 7.2. Each node only spawns once every 12 game hours at a time. Oh, and to unlock the botany or mining legendary nodes for each region requires 1600 purple scrips, or 9600 total scrips including the fishing spots. Never forget fishing because a lot of the top crafting and gathering food includes a hidden out-of-the way fish as an ingredient. Gathering isn't that painful as one node will appear every 5 minutes in real time. Just be prepared to spend either a lot of gil or a lot of aetheryte tokens zipping from zone to zone.

The five new materials required were:

• Cochineal Pigment (40)
• Shaaloani Coffee (36)
• Raw Rhodochrosite (24)
• Cordia Log  (12)
• Octahedrite (10)
• Fulgurite (8)

And finally, the last group of materials required. I know running the duty roulette is a much faster way of obtaining Allagan Tomestone of Heliometry, but as bad as I am at running dungeons I hid away from the world and ran The Underkeep 17 times in order to get the 1360 tomestones I needed to purchase the materials. Each one cost 20 tomestones.

• Diatryma Pelt (20)
• Cronopio Skin (18)
• Neo Abrasive (12)
• Hydrophobic Preservative (10)
• Shaaloani Coke (8)

And this is what I had to do in order to advance in the MSQ. Well, it is if I want a decent shot at getting through Recollection without frustrating everyone in my party. Now, if real life will just let up a bit so I have an hour or two solid time to try running the new trial.

A Look At the Active ISK Delta In March 2025

On Monday CCP Games released the March Monthly Economic Report (MER) for EVE Online. As this post will look at a major influence on the New Eden money supply I want to take a quick look at the developers' main takeaways from last month's MER.

Economic Summary

• Production has stabilized and we’ve seen a marked increase in Mining, especially in Null Sec.
• The Bounty Faucet also saw a dip in March, while Market Tax Sinks have increased.

Okay, not the longest list considering the studio released a major mid-expansion patch in the middle of the month. But the surge of interest in the patch did bring players back into the game. And that movement affects the New Eden money supply, specifically the metric known as the Active ISK Delta.

The Active ISK Delta is the net effect on the money supply of players leaving and returning to the game, including all GM actions. In March, the Active ISK Delta was the 2nd biggest ISK sink in EVE thanks to the mid-expansion patch. The patch affected the Active ISK Delta's ranking in two ways. First, with players returning or sticking around to see the new content, the Active ISK Delta was only -20.6 trillion ISK. Put into context, only 0.9% of the money supply left the game economy due to player movement into and out of the game. Since 2018 the average percentage was 1.8%, meaning the developers cut the negative Active ISK Delta in half when inflation of the money supply is factored into the calculation.

The other reason for the Active ISK Delta falling to second place was the increase of the base sales tax from 4.5% to 7% in the patch. The move vaulted transaction taxes into first place on the list as the amount of tax collected jumped 63%, from 22.7 trillion ISK in February to 37 trillion ISK in March.

Can the Active ISK Delta give any insight into why the developers felt a tax increase was needed? Just from observation over the past few years the developers are worried about inflation and the growth of the money supply. Even with the tax increases the New Eden money supply grew by 0.9% in March.

Now comes the amusing question. If the developers were looking for zero growth in the money supply, they only failed to achieve zero growth due to the Active ISK Delta only removing 0.9% of the game's ISK instead of the 7-year average of 1.8%. Is whoever is overseeing the economy really that dialed into the workings of EVE's economy, or was the 0.9% difference just a coincidence?

Cloud Imperium UK Ltd's 2023 Accounts Are Not Pretty

At the beginning of 2024 fans of Cloud Imperium Games were ecstatic. The company's cash shop had posted another year of record sales of $117.6 million, a year-over-year increase of 3.5%. But in the financial report for 2022 posted to the CIG corporate website, the company revealed worker headcount increased in 2023 from 860 employees to over 1100. Did the overall company revenue match the nearly 30% spike in employees? In a filing with UK Companies House on Friday, the answer apparently is no.

For the second year in a row, Cloud Imperium UK Ltd filed its annual accounts late. Why should followers of games like Squadron 42 or Star Citizen care? Because Cloud Imperium UK Ltd is the "Rest of the World" category in CIG's annual financial reports. The company describes itself in its strategic report as follows:

Principal Activities

Cloud Imperium UK Ltd. operates from the UK managing the rights for the video games Star Citizen and Squadron 42 outside of the US market. Cloud Imperium UK Ltd. generates its revenues from its subsidiary, Roberts Space Industries International Limited, a company engaged with publishing activities for worldwide markets excluding USA. From its revenues, it directly funds Cloud Imperium Games Limited, the largest video game development presence in the Cloud imperium Group and all other non-publishing activities pertaining to Star Citizen and Squadron 42 outside of the USA.

Looking at the Group Statement of Comprehensive Income one can see that the Group recorded a loss of £8.4 million, compared to a profit of £8.5 million in 2022. Here is CIG's explanation.

Fair review of the business

During the year ended 31 December 2023, the Cloud Imperium UK Ltd. group ("the Group") reported revenue of E47.9m (2022: E44.6m) following various alpha releases made during the year. Costs have risen to E67.7m (2022: E43.2m) as the Group continues to progress with the development of the video game Squadron 42, but to which it has added the development of Star Citizen. The primary development for Star Citizen is being undertaken from the UK following the early alpha release version at the end of 2022, which introduced persistence into the game and marked the end of that phase of development. The road to commercial release for the full Star Citizen game is being undertaken in the UK. As usual the publishing activities associated with the video game Star Citizen outside of the US continue to be undertaken within the UK group. Other operating income has increased to E 11.8m (2022: E6.9m) as a result of an increased video game tax credit arising from increased development activities in the UK, with the Group recognising a loss ofE8.4m (2022: E8.5m profit). At 31 December 2023, the group reported net assets of E33.3m (2022: E40.9m).

This loss is consistent with the mid to long term goals of the business aimed at commercial release of the games in development and in particular the cost committed to the development of Squadron 42 to get it to a stage where it can prepare for future commercial release with greater visibility and control.

The passage suggests that with development for Star Citizen now occurring in Manchester that costs in the US should have decreased significantly. But in 2022 the average number of employees working for Cloud Imperium UK each month jumped 49%, from 573 in 2022 to 854 in 2023. Given the total number of employees world-wide jumped to over 1100, headcount in the U.S. probably remained steady.

One of the problems with just viewing the financial information from the UK is that increased costs in one half of the company could result in lower costs in the U.S. Observers will need to await the posting of the comprehensive financial report for 2023 to appear on the CIG corporate website for actual profit or loss figures.

With the boring but required coverage of Cloud Imperium UK Ltd's losses out of the way, let's get to the interesting stuff.

The Turbulent Acquisition - When last year's strategic report revealed CIG purchased the remaining 75% of Turbulent for CA$9.8 million, I was awaiting fuller details about the transaction in this year's accounts. For those not familiar with CIG and its history, an explanation from the Group Statement of Comprehensive Income is below.

On 1 July 2023, the group acquired the remaining 75% of the issued share capital of Turbulent Media Inc., taking the group's total equity interest to 100%, for a total consideration of £4,330,702.

Cloud Imperium UK Ltd. and Turbulent Media Inc. have successfully collaborated since 2012 on the ongoing evolution of Star Citizen, the iconic Massively Multiplayer AAA video game currently in development. Turbulent Media Inc. is based in Montreal, Quebec in Canada.

Turbulent Media Inc. has been integral to the development of Star Citizen has equally been integral to the development of our e-commerce platform, building our marketing and platform infrastructure, and now to actively contributing to the development of Star Citizen and SQ42. Management recognises the shared cultural values and passions between the two companies, which have helped create a natural synergy and development pipeline for our joint projects over the past decade.

Management have estimated the useful life of the goodwill to be 10 years. The acquired software is integral to the daily development of Star Citizen that has now been moved to the UK. The strong customer relationships will generate external revenue for the group. The group will now utilise the assembled workforce to continue the development of Star Citizen and SQ42.

Upon derecognition of the investment in associate, the share of historical profits and amortisation of Goodwill of the investment have been recycled against retained earnings in accordance with FRS102.

The total consideration of £4,330,702 was CA$7.2 million at the exchange rate on 1 July 2023.

Reading the final details of the deal were amusing as CIG was able to consider £2.9 million owed to Turbulent wiped off the books. Also, payments owed to the two co-founders of Turbulent, Benoit Beausejour and Marc Beaudet, count as employment expenses of £1,945,744. The payments were contingent on the pair staying with CIG for two years. I believe the two-year period is over on 1 July 2025.

The Put Option - Last year a conflict arose over a financial arrangement made between the Calders and CIG when they made their initial investment into the company. The continued existence of the put option, however, is still causing conflicts between CIG and their independent auditors, PwC.

The auditor explained why the audit could only give a qualified opinion on the accuracy of the financial accounts.

Basis for qualified opinion

The Group and Company have disclosed a contingent liability within note 31 of the financial statements. This is a put option entered into by the Company in 2018 with certain minority sharehotders which, if exercised, would result in a contractual obligation for the company to deliver cash or another financial asset to the holders in exchange for the shares. In accordance with FRS 102 this should have been recognised as a financial liability within the balance sheet. After initial recognition, the liability should have been subsequently measured in accordance with section 11 and section 12 of FRS 102 with the changes recognised within the Statement of Comprehensive Income. Management has outlined a valuation within Note 31 which is material, however, we were unable to obtain sufficient appropriate audit evidence in relation to this balance and so have qualified our opinion in respect of this put option.

The put option as described at Note 31 is a bit confusing. First the description.

A contingent liability exists with respect to 1,877 ,400 (2022: 1,877,400) of the 11,745,920 (2022: 11,715,800) issued shares as of 31 December 2023. The holders of these shares have the right to put their shares back to the Company for repurchase at a minimum return premium of 6% per annum on the initial purchase price. For 1,599,900 (2022: 1,599,900) shares they also have a value formula based upon the three years' average revenue leading up to the start of the exercise period.

When the information first emerged last year, the smaller investor was identified as Eli Klein, who advised CIG on the Calders' initial $46 million investment in the company. The larger investors were the Calders, specifically Keith Calder and Indus Management, LTD. According to the above, the shares acquired from Ortwin Freyermuth last year do not qualify for the put option.

The timing of when the option may be exercised is unusual. The clock doesn't start running on the decision period until CIG completes its accounting for the fiscal period. A move that makes sense since in at least one instance the payout is determined by a formula that extends for three years.

For 1,599,900 (2022: 277,500 shares were exercisable between 01 January 2024 and 31 March 2024) shares their first put rights are exercisable within 30 days of the financial statements being delivered for the year ended 31 December 2025 and within 30 days of the financial statements being delivered for the year ended 31 December 2028 and for all   shares (2022: 1,877,400). Separately 277,500 shares are exercisable on 31 December 2027.

Based upon representations from the holders and given the company's financial position, budgets and forecasts the company currently assesses the probability of the holders exercising their put rights to be remote.

So according to the above, Klein can exercise a put option within 30 days of the financial statements being delivered for the years 2027 and 2028. For the Calders, the years are the end of 2025 and 2028. I had been under the impression a decision was required in the first quarter of those years.

The explanation for why CIG did not want to include the contingent liability is because, to summarize, the terms are confusing. How confusing? Here's the example CIG included in the accounts.

Consequently, consistent with prior years, the company has not recognised this put option as a financial liability measured at the net present value of the expected payments. If it were to do so at the minimum return value on the investment for those shares it would generate a liability with a present value of £30.4m at 31 December 2023 (2022: £31.1m) using a discount rate of 10% (2022: 7.32%). This would rise to £44.6m (2022: £47.8m), based upon a multiple applied to an estimate of three prior years revenue leading up to the exercise dates. There are many assumptions underpinning the calculation multiple before the probability of it being exercised is considered, and the fact that this is considered remote is the primary reason for not recognising the uncertain net present value of this potential contingent liability.

Of course, the claim that any of the shareholders wishing to take advantage of the put option is so remote the company didn't need to consider the possibility did not fly with the auditor. But if a put option is exercised at the end of 2028 probably would exceed $100 million.

Post balance sheet events - A loss of £8.4 million is possibly an accounting trick for tax purposes. The acquisition of Turbulent was possibly a shrewd move, especially considering the expenditure was much less than reported in the 2022 company accounts. The put options are complicated affairs that shareholders probably won't exercise in the next few years, if ever. But then we get down to the post balance sheet events. These are financially significant events that don't affect the evaluated year's balance sheet. 

The first is the sale of 247,520 shares to an existing shareholder on 15 January 2025. The sale price of each share was $20.20, making the purchase $5 million, or £4.1 million at the day's exchange rate. The fact the buyer was an existing shareholder was a new detail not known before the release of the accounts.

The second is a previously unknown event. On 3 March 2025 CIG borrowed £10 million, or $12.6 million from an existing shareholder. While the identity of the shareholder is unknown, the principal of the loan is due on 31 December 2027.

From page 6 of the 2023 company accounts

Looking back, Cloud Imperium UK Ltd posting an £8.4 million loss two years ago is potentially embarrassing but without the figures from the U.S. portion of the operation, explainable. The fact that the auditor of the report could only give a qualified opinion on the facts surrounding the Calders' put option, a contingent liability potentially larger than CIG's assets, is worrisome. Especially since the liability is likely to exist for the next 5 years. But the raising of £14.1 million ($17.6 million) over the past 3 months is part of a series of events since the end of 2023 that leads one to believe CIG is in financial trouble.

In March 2024 Chris Roberts explained the departure of staff as well as announcing the eventual closure of the Los Angeles office for game development. In April & May, Cloud Imperium co-founder and long-time business associate of Roberts, Ortwin Freyermuth, sold off his shares in the company and resigned from the board of directors in June. In December word once again spread about layoffs at Cloud Imperium, this time involving quality assurance staff.

In January, right before the sale of $5 million in CIG shares, word of a leadership shakeup leaked out. The new leadership team adopted a strategy that resulted in first quarter cash shop sales rising over 47% compared to the first three months of 2024. So in addition to raising $17.6 million from existing shareholders, the cash shop raised an addition $8.2 million. Add in the closure of the Los Angeles office for administration as well as game development and matters don't look good. And with Friday's announcement that CitizenCon would not take place physically and only last one day, the bad news continues to roll on.

Cloud Imperium UK Ltd Late Filing Penalty Set To £750

Correction: 6 April 2025 - Now that the documents are available, the timestamp shows the accounts were received on 29 March, not 4 April. This means that the fine is only £750, not £1500. The blog post has been updated accordingly.

This morning Cloud Imperium UK Ltd filed its group of companies accounts for the 2023 fiscal year with UK Companies House. 

This morning the filing of Cloud Imperium UK Ltd filed its group of companies accounts for the 2023 fiscal year appeared on the UK Companies House website. According to the website the accounts will be available to the public in 10 days, which is Monday, 14 April 2025.

As seen on 4 April 2025

The fine for the late submittal of the accounts by a private company or LLP between three and six months is normally £750. But as Cloud Imperium is filing late for the second year in a row, the fine is doubled to £1500. According to the Companies House website not only is the company subject to the fine.

The fine for the late submittal of the accounts by a private company or LLP between one and three months is normally £375. But as Cloud Imperium is filing late for the second year in a row, the fine is doubled to £750. According to the Companies House website not only is the company subject to the fine.

Consequences of not filing

Not filing your accounts or confirmation statements is a criminal offence. Directors or LLP designated members could be personally fined for this in the criminal courts.

Failing to pay your late filing penalty can result in enforcement proceedings. Any criminal proceedings for not filing confirmation statements or accounts is separate from (and in addition to) any late filing penalties issued by Companies House against the company.

You could get a financial penalty if you do not file your confirmation statement on time. The registrar could also take steps to strike your company off the register.

What does the news of Cloud Imperium finally filing its 2023 accounts mean going forward? For one, we may see the company file its annual financial report on its company website next week. I imagine the company's leadership will want to present its full report (and any spin) to the general public before the accounts become available on the 14th.

We also will get some answers to some questions. I currently am going on the assumption that the Calders' put option for Q1 2025 caused some conflict with the auditors. The option expired on Monday. The accounts will probably address whether the put option was exercised or the Calders will wait until the first quarter of 2028.

Another question up in the air is the status of Turbulent. The Montreal-based company was acquired in the summer of 2023. Will the company fall under the UK branch of Cloud Imperium or the US branch? If the UK, that move could have complicated the creation of the accounts. Also, such a move might signal the long term direction of the US branch.

Finally we come to the question of new offices in Manchester, and perhaps Frankfort as well. The construction for building both sets of offices completed in 2022. Cloud Imperium did not begin moving staff into the Manchester facility until 2023. A look at the accounts should show how much the company is currently spending on office space, at least in Europe.

I'm hoping that by the end of the month I can stop writing about Cloud Imperium's finances for 2023 and can move on to 2024. Based on recent history, CCP Games' release of its 2024 accounts should show up for public access on Iceland's taxing authority website in 4-6 weeks. As for Cloud Imperium? I really hope they submit their accounts on time for a change.