The EVE Partner Kerfluffle Of Pride Month 2026

Normally I don't discuss the content creator scene surrounding EVE Online. But a couple of members of the EVE Partner program managed to get themselves kicked out. One of them, a YouTuber/Twitch streamer known as Loru, has appeared as part of the official player host panel at both Fanfest 2025 and Fanfest 2026. But still, since I don't qualify for the EVE Partner program because my readership is too small I didn't want to write something that would come across as sour grapes.

FC Swift's statement via Reddit

At this point MassivelyOP picked up the story and FC Swift's statement. I was hit by surprise by the move because work got in the way and had stopped following the situation. After all, nothing was really going to happen, right? Wrong. 

I decided to ask Gemini and received a lot of reasons why Fenris would want to take the actions they took. Oh. I knew that Loru's actions in banning the Pride flag emoji from his chat would not go over well with Fenris. Doubling-down on the action definitely would rub the long-standing culture built over the decades was not a good way to get along with those running the EVE Partner program. But I didn't realize other ramifications are now present since Fenris bought its freedom from Pearl Abyss.

I did ask Gemini to come up with a morale post for the situation but decided to not post it. Instead I used a few prompts to clean up and clarify what Gemini first presented me about the situation. I don't know how much is AI hallucination and how much is reality. Only FC Swift, the community relations team, and perhaps Fenris' general consul would know for sure. Hopefully editing Gemini's post down to 500 words cuts some of the possible slop out of the AI's words. Once I had the final edit I decided it made a whole lot of sense.

Why Removing Loru Was the Only Viable Move for Fenris Creations

The EVE Online community is no stranger to intense drama, but the swift removal of high-profile streamer Loru (Lorumerth) from the EVE Partner program marked a pivotal moment for independent developer Fenris Creations.

The controversy looked like a standard community management flare-up: a creator enforces a rigid "no flags" rule in his Discord during Pride Month, the community calls out a double standard regarding his stream's religious content, things escalate live on Twitch, and the studio steps in.

But looking at the corporate landscape, Fenris Creations didn’t just make a routine community call—they made an essential business decision. Keeping Loru in the partner program would have been a catastrophic misstep for the studio’s long-term interests.

Here is why drawing a hard line was the only viable move.

1. The Clout Paradox: Fanfest Hosting Changes the Rules

Loru wasn't a background streamer; he was fresh off the stage at EVE Fanfest 2026, where he served as an official host on the developer streams and won Video Creator of the Year.

When a studio elevates a creator to that degree, the dynamic shifts. An on-stage Fanfest host is an extension of the corporate brand. When the controversy erupted, critics argued Loru used the massive validation he received from the studio to mock and ban viewers who questioned his policy. By stepping in decisively, Fenris Creations proved that a creator's marketing utility does not buy them immunity from basic standards of conduct.

2. The Absolute Reality of Icelandic Law

Operating out of Reykjavík, Fenris Creations is bound by Icelandic law. Under Article 233(a) of the Icelandic Penal Code, public denigration or hate speech targeting individuals based on sexual orientation or gender identity carries criminal weight.

Maintaining an official, incentivized marketing partnership with a creator actively targeting a protected class creates a massive legal and public relations liability. Aligning the partner program with domestic legal realities is basic corporate governance.

3. Protecting the Google DeepMind Partnership

Following its transition to independence, Fenris Creations secured a strategic partnership with Google DeepMind to explore advanced AI integrations.

Massive tech conglomerates operate under rigid brand-safety guidelines and Environmental, Social, and Governance (ESG) standards. They do not want their brand associated with toxic internet shouting matches over LGBTQ+ inclusion. Protecting the brand safety of multi-million-dollar relationships is paramount for investor confidence.

4. Guarding the "New Player" Horizon

EVE Online relies entirely on replacing aging veterans with new blood. If a new player visits Twitch, clicks on the studio's "Video Creator of the Year," and witnesses a toxic chat war resulting in viewers being banned over a rainbow emoji, that player uninstalls. Cultivating an inclusive baseline is an ecosystem preservation strategy.

The Takeaway

Fenris Creations left Loru a bridge to return, allowing him to reapply in three months. But by acting swiftly, the studio sent a vital message: Nobody is bigger than the health of the capsuleer community.

A Closer Look At Pearl Abyss' 23.1% Stock Crash After The Fenris Creations Divestment

The more I look into the situation between Pearl Abyss and Fenris Creations, the more I become convinced both parties view the separation beneficial for themselves. An article in The Asia Business Daily points out the unfavorable environment for video game companies. 

Industry experts attribute the decoupling between game companies' earnings and share prices to a combination of uncertainty over upcoming game lineups and concerns about a global economic slowdown.

With Black Desert annual revenue falling over 50% since 2019 I understand why Pearl Abyss would want to divest itself of a studio spending a lot of money trying to develop new video games. Getting DokeV developed and released quickly is a better use of now limited development funds to our former overlords in Anyang. And, if I'm honest, their assessment is correct.

The revenue from Pearl Abyss' cash cow is down from 2019

Some analysts thought the divestiture would help Pearl Abyss by removing the need to help the Icelandic/UK studio develop games.

For Pearl Abyss, analysts view the divestiture as a positive move that frees capital for its own intellectual properties. Crimson Desert, released in March 2026, has sold over five million copies globally, and the company has indicated plans to channel proceeds from the CCP sale into developing and marketing its own titles, including DokeV, while remaining open to future collaboration with CCP. 

I thought the last phase was just polite fluff until I learned more about the terms of the managerial buyout.

Pearl Abyss, the Korean developer of hit MMO Crimson Desert, has sold Eve Online developer CCP Games back to its CEO Hilmar Veigar Pétursson for $100 million in cash and $20 million in "token acquisition rights", eight years after buying it for $225 million in cash plus $200 million in performance-related payouts. The figures were reported by Korean outlet Digital Today.

The "tokens" are believed to refer to blockchain-based survival game Eve Frontier, for which CCP raised $40 million in 2023, in a funding round lead by crypto-enthusiast VC firm Andreessen Horowitz. Frontier is currently available in pre-release form for those who purchase Founder Access, and its Terms of Service refer to "on-chain" tokens it terms "Alpha Tokens" while expressly disclaiming "to the fullest extent possible in law any liability regarding the nature or value of these Alpha Tokens or wallets."

At this point I looked at the two major international investors who have issued a rating for Pearl Abyss since the board of directors for Fenris changed hands from Pearl Abyss' control on 6 May. First up is JPMorgan. According to Investing.com, on 12 May the US-based financial giant lowered its target from ₩50,000 down to ₩46,000 while maintaining a "Sell" status. A day later Japanese giant Nomura Securities raised the target price from ₩84,000 to ₩92,000 while maintaining its "Buy" recommendation.

Why the difference in analysis based on the same facts? I had to admit I needed help getting out of the rabbit hole and turned to an AI program, Gemini. Rather fitting since Google DeepMind was involved in the financial transaction covered in this post. Let's start with why Nomura had a positive outlook.

• The "Pure-Play" Margin Fix: Nomura's model looked past the loss of EVE Online's revenue and focused entirely on the immediate elimination of CCP's massive, ongoing R&D burn. Wiping those capital-intensive Web3 and mobile development liabilities off the balance sheet instantly expands Pearl Abyss's upcoming operating margins.
  
  
• The "Free Call Option": Rather than penalizing the deal for including $20 million in digital tokens, Nomura treated those acquisition rights as a zero-risk, high-upside financial instrument. Pearl Abyss successfully insulated itself from 100% of the operational losses of EVE Frontier, yet legally retained skin in the game if the project hits.
  
  
• The Valuation Multiplier: With a clean balance sheet, Nomura argued Pearl Abyss should command a premium P/E (price-to-earnings) multiple, driven by a highly efficient two-tier model: Black Desert Online acting as a stable corporate safety net, entirely funding the global expansion of Crimson Desert and the acceleration of DokeV.

Let's now compare Nomura's rosier outlook with JPMorgan's institutional counter-argument: a strict, risk-averse focus on cash-flow diversification and asset quality.

The Revenue Quality Markdown: JPMorgan's equity research team prioritized structural stability. EVE Online provided a highly predictable, fiat-denominated, multi-decade annuity. Trading that reliable cushion away right as the massive initial package sales of Crimson Desert begin their natural second-quarter post-launch taper leaves the company entirely exposed to a cyclical revenue gap.



The Volatility Haircut: From a Western underwriting perspective, unlaunched utility tokens are non-cash-generating, intangible assets. Lacking legal guarantees or market liquidity, JPMorgan applied a steep risk premium to the transaction, essentially discounting the $20 million token portion down to zero.



Over-Reliance on an Aging Core: JPMorgan argued that with EVE Online gone, Black Desert Online is being asked to carry the entire live-service weight alone. If DokeV faces lengthy development delays, the studio has no fallback if BDO monetization hits a natural mature plateau.

I am not an expert in the investment policies of international banking institutions so I just took the bullet points from Gemini's analysis. But I can say with a lot of confidence which company was correct 3 weeks after the news of the divestment broke: JPMorgan.

Trading on Pearl Abyss stock closed Friday at 46,050, or 50 won above the JPMorgan target price. Perhaps worse for clients of Nomura, Pearl Abyss stock is now half the target price its analysts set. And since the end of trading on 29 April, the day before the news broke, Pearl Abyss stock has declined in price by 23.1%. Unlike investor reaction to the launch of Crimson Desert, the price may not bounce back for quite a while. As The Asia Business Daily article noted:

Securities analysts point out that expectations for Crimson Desert have already been priced into the stock. The current sentiment in the gaming industry makes it difficult for a new game's success alone to push share prices higher, while concerns over a lack of upcoming titles are weighing on investor sentiment.

Samsung Securities noted, "It will take one to two years to release DLC for Crimson Desert, and development of the next titles, DokeV and PLAN 8, will also require time," adding, "A lack of momentum from new releases is inevitable over the next one to two years." Meritz Securities also assessed, "Market attention is shifting toward monetization in China, DLC release schedules, and shareholder return policies."

I think Nomura may have been just a bit too optimistic.

The Final Board Of Directors' View Of CCP Games From The 2025 Consolidated Financial Reports

Two weeks ago the 2025 financial reports for Pearl Abyss Iceland and CCP ehf came out on the website of the Icelandic national taxing authority. Croda over on marketsforISK did his annual analysis on the finances of Pearl Abyss Iceland. But something changed this year. On 6 May the three Pearl Abyss members of CCP ehf's five person board of directors resigned as a result of the management buyout and rebranding of the company to Fenris Creations.

I'm going to try to do something rather foolish and write a couple of posts looking forward based on the 2025 financials. But as the statement in CCP ehf's filings was dated 21 April 2026, what follows is probably the last statement from the old Pearl Abyss dominated board. Except for a couple of points of clarification, what follows below is the statement of the board before the management buyout occurred.

CCP ehf. designs, develops, markets, and operates immersive virtual worlds and games accessible over the internet. Our mission is to create virtual worlds more meaningful than real life. Headquartered in Iceland, the Company operates subsidiaries in the United Kingdom, China, and the United States.

I just want to point out the Pearl Abyss Iceland is different from the now Fenris Creations. "Pearl Abyss Iceland ehf. is a holding company established in 2018. In October 2018 the Company bought all issued and outstanding shares in CCP ehf." As far as I can tell, Pearl Abyss still owns Pearl Abyss Iceland.

Operations during the year

In 2025, CCP generated revenues of USD 70.3 million, compared to USD 70.4 million in the previous year. Notably, game revenue increased by USD 4.8 million (8%) year-on-year, reflecting strong ongoing engagement across EVE Online. However, the Company reports a net loss of USD 14.0 million compared to a USD 2.9 million loss in 2024. This is a continuation of CCP's deliberate and increased fully funded investment in multiple active development projects — including EVE Frontier, EVE Vanguard, and the Carbon open-source platform — which are scheduled to enter key release phases from mid-2026 onwards. These investments, while impacting short-term profitability, are central to CCP’s strategy and position the Company for strategic and sustainable growth in the years ahead. As of year-end, shareholders’ equity stood at USD 13.2 million, with an equity ratio of 21.5%, and total assets of USD 61.2 million. The Company employed 165 people at year-end, compared to 173 people at the beginning of the year.

Here once again I have to stop to provide figures from Pearl Abyss Iceland. PAI showed revenue of USD 65.3 million, compared to USD 60.2 million in 2024. The Group also reported a net loss of USD 28.8 million, compared to a USD 19.5 million net loss in 2024. The numbers for PAI are much worse than for CCP, meaning outside factors played a role even before the management buyout. Yes, Angelice Prime Foundation is involved, but that subject requires its own blog post or two.

During the year, the Group continued to expand the EVE Universe through major updates to EVE Online while advancing development across multiple new titles and platforms, alongside ongoing live operations. In January 2025, the Group published the EVE Online development roadmap, outlining two major expansions supported by continuous narrative events and systemic improvements designed to strengthen the player-driven economy and large-scale conflict across New Eden. 

Community engagement remained strong throughout the year. In February 2025, the Group announced that tickets for EVE Fanfest 2025 had sold out in record time, demonstrating the continued strength and global reach of the EVE community. 

I should point out "community engagement" was a very big topic on Pearl Abyss quarterly earnings calls. I'm not sure if that is one of the subjects the overlords in Anyang learned from CCP/Fenris.

The first expansion of the year, EVE Online: Legion, launched in May 2025. 'Legion' introduced new systems aimed at broadening participation in both economic and military gameplay, including features designed to support more flexible and accessible collaboration across player organizations. The expansion formed part of the Group’s ongoing strategy to evolve EVE Online’s sandbox by enabling new forms of player agency and contribution. 'Legion' continued to be refined through updates and live iteration throughout the year. 

This was the point in the year EVE Frontier also came into its own with its universe hosting 24/7 access to the game. I would have to wonder how the new board that took its seats over the last week or so would have written the above paragraph.

In November 2025, the Group released the second major expansion, EVE Online: Catalyst, focused on evolving the industrial and resource systems that underpin the game’s economy. 'Catalyst' introduced new resource flows, alongside improvements to exploration, navigation, and strategic mobility, reinforcing the foundations of New Eden’s player-driven ecosystem. Subsequent updates in early 2026 further expanded on these systems, supporting continued engagement and long-term economic balance. EVE Online maintained strong player engagement throughout the year and delivered its strongest revenue performance in several years. 

The comments about content released in 2026 leave a clue that content in the document isn't just about the past.

Significant progress was made during the year on EVE Frontier, a new hardcore space survival MMO set within a persistent single-shard universe. Frontier expands the EVE Universe into a new genre while introducing programmable infrastructure systems that enable players to build, automate, and operate complex in-game structures. During 2025, the Group expanded access through its Founder Access program and introduced multiple gameplay cycles, allowing early participants to engage with evolving systems and provide feedback that informs development. 

This is why I wonder about how the write-up was done. I'm used to seeing events pretty much documented in chronological order. Nothing wrong with ordering the content by game, but I wonder if a subtle message is being portrayed in a document almost no one will read. Probably not, but given the history of the company, one can never tell.

In October 2025, the Group announced a strategic collaboration with Mysten Labs and the Sui network to support the technological platform underlying EVE Frontier. This partnership provides scalable infrastructure for programmable in game systems and digital assets, supporting the development of a broader ecosystem of tools and services around the EVE Frontier platform. 

The above paragraph shows how Fenris looks at blockchain technology. As a ready-made scalable infrastructure. I'm not sure the rest of the world would apply the tech to game systems and digital assets. Perhaps if Frontier succeeds.

Development also progressed on EVE Vanguard, the Group’s sandbox first-person shooter set within the EVE Universe. In September 2025, the Group launched Operation Nemesis, a large-scale public playtest introducing new mission structures and gameplay systems, while demonstrating early integration between planetary combat and events occurring in EVE Online. EVE Vanguard continues to be developed in close collaboration with its player community as the Group works toward future release milestones. 

Given the ordering of the year by game, is anyone surprised by the first person shooter showing up third in the priorities? 

The Group also continued live operations of EVE Galaxy Conquest, the mobile strategy title developed by the Group’s Shanghai studio. The game extends the EVE Universe to mobile platforms, enabling players to engage in large-scale strategic conflict through fleet command, territorial control, and alliance-based gameplay, supported by ongoing content updates and live operations.

And finally the mobile game. I really have to wonder if the mobile game was pressed upon Fenris by Pearl Abyss. Black Desert Mobile was such a hit in its first few years I can well imagine the folks in the home office in Anyang thinks a mobile game would produce big money in a short amount of time.

I have not seen the forms listing the members of the new board of directors. But that is a subject for the future. For now, we are closing down the Crowd Control Productions chapter of Fenris Creations history.

Pearl Abyss Q1 2026 Earnings Letter

Yesterday Pearl Abyss released its earnings information for the first quarter of 2026 in a new format. Instead of a call the South Korean game maker posted a letter which had most of the information given in a typical earnings call. 

The big news, of course, was the launch of Crimson Desert on 19 March 2026. The company described some rather impressive numbers.

[T]he game solidified its position as a AAA game by recording 2 million copies on the first day of launch, 3 million within 4 days, 4 million within 12 days, and 5 million within 26 days. In addition, we enhanced the overall user experiences by adding new content and improving user experience through patches based on user feedback.

According to the letter, Crimson Desert brought in ₩266.5 billion ($177.1 million) in the first quarter, meaning the first 4 million copies sold were recorded in the earnings letter. Sales were split roughly 50-50 between the PC and console versions of the game. 

Selling those 4 million copies did come with costs. Commissions increased quarter-over-quarter by ₩28 billion ($19 million) due to an increase in sales on Steam. Also, quarter-over-quarter advertising costs increased 151% up to ₩23.4 billion ($16 million).

Pearl Abyss' other IP, Black Desert, saw a 2.2% decline in revenue, both QoQ and YoY, down to ₩61.6 billion ($42.1 million).

Now for the elephant in the room: the divestiture of CCP Games, now Fenris Creations. As part of the move Pearl Abyss removed all trace of Fenris from the report except for one line in the appendix stating the losses caused by the "Discontinued Operation". From what I found, standard accounting practice is to reclassify as "Discontinued Operations" any activity of a subsidiary that is sold. Doing so provides investors with an apples-to-apples comparison of Pearl Abyss' current business to historical data. As such the graphs in the letter had any data from Fenris/CCP removed.

Unexpectedly, at least to me, the earnings letter provided an answer to the question, just how many resources was Fenris/CCP taking from Pearl Abyss in developing games. According to the appendix, the "Discontinued Operation" would have experienced ₩33.6 billion ($23 million) in net losses in 2025 with an additional ₩12.1 billion ($8.2 million) in the first quarter of 2026.

I was also able to calculate the operating losses generated by Fenris/CCP during 2025 by combining the data from the letter to the information in the Q4 2025 earnings call. Those came out to ₩47.0 billion ($33.1 million).

This breakdown highlights why management likely moved toward the divestiture. By removing a segment that was averaging a roughly ₩10–13 billion quarterly operating loss in 2025, Pearl Abyss's baseline profitability appears significantly stronger once the Crimson Desert revenue hit the books. Given Pearl Abyss' recent history with investors, they can use all the help looking good they can get.

Pearl Abyss Stock Down 13% Since The Divestment Of CCP Games/Fenris Creations

I think a lot of people think that now that CCP Games purchased its freedom from Pearl Abyss and changed its name to Fenris Creations I don't have to worry about Pearl Abyss financial reports anymore. Wrong. I need to see if the company line coming out of Anyang that CCP was dragging down Pearl Abyss is true.

How can I do that? One way is looking at the stock price of the South Korean game maker. If divesting itself of CCP/Fenris was a good move, investors should reward the move by buying up stock. If the move is bad then the price should decline.

Through the first 5 trading days since the buyout was first noticed the price of Pearl Abyss shares on the KOSDAQ has declined 13%. Friday's trading was neutral so the decline actually occurred over 4 trading days. I wonder if the price will continue to decline as the EVE IP brought in 26.2% of all gaming revenue for Pearl Abyss in 2025. And please note I used the $65.2 million figure from the investor calls, not the over $70 million figure claimed in the press release from Fenris.

For those wondering, in 2019 the gaming revenue percentage was only 10.5%, showing the EVE IP had become an increasingly important source of revenue generation over the previous 7 years.

Of course, I still need to follow other sources of information. Pearl Abyss should hold its next earnings call covering Q1 2026 next week. I am also waiting on the latest financial filings with Skatturinn (Iceland Revenue and Customs) which should provide a lot of information. I have a suspicion the documents will be filed later than usual as the section covering future expectations might need some revision. Also, some old familiar faces are showing up besides Birgir Már Ragnarsson, the chairman of the board of Fenris. I need to update my notes with the latest on those as well.

CCP Games Rebrands To Fenris Creations

Shortly after I posted my article about the 23rd anniversary of EVE Online CCP Games announced they were no longer CCP Games.

REYKJAVÍK, Iceland – May 6, 2026 – The company formerly known as CCP Games today announced that it will become an independent entity operating under the new name Fenris Creations.

Just a little history about the company now known as Fenris Creations. The company was founded in 1997 as Loki Multimedia and stayed that way until the name was changed to Crowd Control Productions in I believe 1999. For those into Norse mythology, Loki was the father of the wolf Fenrir. Fenris is another name for Fenrir although apparently the alternate name doesn't come from Old Norse.

Fenris Creations is now governed by its own Board of Directors, returning to a model similar to how the company operated before 2018, and one designed to support strategic decision-making for persistent live games and long-running virtual worlds. The ownership group comprises Fenris Creations’ senior management and long-term investors aligned with the company’s future as a developer, publisher, and operator of player-driven online experiences. As disclosed in Pearl Abyss’ regulatory filings, the transaction value is $120 million USD, with consideration comprising both cash and non-cash elements.

I don't think people have pointed out the "non-cash elements" of the transaction. Did Pearl Abyss receive shares in Fenris? Or is the publishing and marketing organization CCP merged into Pearl Abyss remaining with the South Korean company? One of the many questions I have about the transaction.

The change reflects a shift in ownership and governance only. Fenris Creations will continue to operate as a standalone studio, responsible for its strategy, operations, and creative direction. Fenris Creations’ leadership team, studios, products, and ongoing development plans remain unchanged, with the same people who have guided the EVE universe for many years continuing to lead the company.

This section leads me to believe Pearl Abyss didn't get the Shanghai office. And as a stray note explains why Fenris uses NetEase as its Chinese publishing partner and Pearl Abyss uses Tencent.

Alongside this transition, Fenris Creations is entering into a research partnership with Google DeepMind, focused on advancing understanding of intelligence in complex, dynamic systems. The collaboration will explore areas including long-horizon planning, memory, and continual learning, using EVE Online as a uniquely rich environment for study. Google DeepMind will work with an offline version of EVE Online running on a local server to test and evaluate models in a controlled setting. Together, the partnership will also explore new gameplay experiences enabled by these technologies.

Google has invested in Fenris Creations as part of this transition, taking a minority stake in the company.

Google DeepMind seems a fitting partner considering the direction the company has headed in the past 4-5 years. The AI studio has involved itself with games, producing AlphaGo, the first computer program to defeat a Go champion. But looking on Wikipedia I see an application designed to run data centers efficiently. Fenris has a long history of being involved in data centers in Iceland. If the off-line servers Google DeepMind plans to use to simulate EVE are located in Iceland, Alphabet may gain first hand experience with geo-thermal powered data centers.

I should note that Google is now a part-owner of Fenris Creations. I haven't seen a credible source stating how big the stake actually is. Sorry Reddit, but you don't count. Another question to wait on financial filings with the Icelandic taxing authority.

“EVE is built to endure - and it only works if you’re willing to keep pushing into the future. This transition gives us direct ownership, clear accountability, and the independence to invest in worlds that grow over decades,” said Hilmar Veigar Pétursson, CEO of Fenris Creations. “We’re grateful to Pearl Abyss for their partnership and for the consistent support they’ve shown us over the past seven and a half years. EVE Online exists today because of pioneering thinking, patience, and trust between developers and players. Our new structure and partners enable us to carry that legacy forward - continuously evolving a living universe and actively exploring what it can become, with forever in mind.”

Hearing from Hilmar is pretty standard by this time for those who have covered the company for a few years. But the next block is from someone new.

“Games have always been a huge part of my life - I’ve been a gamer since I was a kid, and I started my career designing and programming complex AI simulation games like Theme Park. They’ve also been at the heart of many of Google DeepMind’s breakthroughs - like Atari DQN, AlphaGo, AlphaStar and SIMA - because they’re the perfect training ground for developing and testing AI algorithms,” said Demis Hassabis, co-founder and CEO Google DeepMind. “I’ve known Hilmar for many years and long admired his work, and I’m thrilled to partner with him and the fantastic team at Fenris Creations to explore new gaming experiences and advance AI research safely inside a player-driven universe as amazingly complex as EVE Online.”

I never thought I'd quote a bible verse in relation to Hilmar, but familiarity breeds contempt. Apparently while people were wondering about Hilmar running around the world acting like a thought leader, he actually was a thought leader. If the co-founder of DeepMind has followed Hilmar, then the Icelandic game executive gains a bit of geek cred.

“I’ve followed CCP’s progress closely over the past several years and have great respect for what the company has achieved,” said Birgir Már Ragnarsson, Co-founder and Partner at Omega Ventures, and Chairman of the Board at Fenris Creations. “As Chairman, I’ve seen firsthand how this company performs when its leadership is set up to focus and execute. We’re entering this next phase from a position of strength, with experienced leadership and strong partners in place. I’m looking forward to playing a part in that journey and supporting Fenris Creations as it continues to make history.”

When I saw Birgir was involved as the new Chairman of the Board, I knew Hilmar was getting the old gang back together. From reviewing all the tax forms submitted to the Icelandic taxing authority plus Birgir's LinkedIn page, he first became involved with CCP Games back in 2005 when he was named to the board of directors. He first appeared on paperwork as the Chairman of the Board in 2013 and was the chairman when the company was acquired in 2018. I can't wait to find out who else is on the board.

"For employees and the local community in Iceland, Fenris Creations emphasized that this transition does not involve restructuring or layoffs. There are no planned changes to the company’s organizational structure, and its headquarters will remain in Vatnsmýrin, Iceland. Studios in Reykjavík, London, and Shanghai will continue to operate as they do today."

I usually don't believe this talk of no job losses. But in this case I wonder if the company will need to beef up some departments that were previously merged with Pearl Abyss. At least Pearl Abyss can't make Fenris lay off people if things get bad in South Korea. Let's just say I won't have a lot of faith in Pearl Abyss' game development until they prove they can produce a game on-schedule.

Since 2018, CCP Games and Pearl Abyss have worked closely together while evolving as companies. Following a joint review of long-term strategy, both parties concluded that the company is now best supported through independent ownership as Fenris Creations, while Pearl Abyss continues to focus on the growth of its own core titles and IP portfolio. Broader differences in operating context, current strategic focus, and long-term priorities were among several factors considered in this decision.

This paragraph I believe is a pile of crap. With Pearl Abyss trying to throw Fenris under this bus for its financial difficulties, something tells me not all was peaceful in the relationship.

Fenris Creations enters this next phase with strong momentum across its sci-fi universe. EVE Online closed 2025 with some of its best results in several years, including a record-breaking revenue month in November and a standout Q4 that became the second-highest revenue quarter in the game’s more than 20-year history. The iconic spaceship MMORPG exceeded internal expectations and demonstrates sustained strength as a live service in its third decade of continuous operation. Adding to this strong position are two upcoming titles in development: EVE Vanguard, an extraction-adventure FPS, and EVE Frontier, an online space survival game. The company remains profitable, with over $70M in reported revenue for 2025 and strong reserves, reflecting sustained player engagement and enabling continued investment in the long-term health of the EVE Universe.

The $70 million figure is huge. From following Pearl Abyss' earnings calls through last year, I have Fenris' revenue from games in the EVE IP at $65.2 million. I wonder what happened for the year-over-year revenue growth in 2025 to be twice that reported on the calls. Foreign exchange effects perhaps?

Pearl Abyss and Fenris Creations part ways with mutual respect following a partnership that supported the company’s growth during an important period in its history. Both companies now move forward with clear direction on their respective priorities.

Sorry, but I've followed Pearl Abyss, or at least its leadership, to believe that for a second.

Aream & Co. and Arion Bank are acting as financial advisors to Fenris Creations, and LOGOS is providing legal counsel.

Fenris Creations will continue to communicate openly as it moves forward under this new model, with a clear focus on the future of the EVE universe.

A couple of more pieces of information to look into.

I just have to conclude that the 23rd anniversary of the launching of EVE Online was memorable. But I have one more data point to track: the price of Pearl Abyss stock. The Korean NASDAQ has only had 4 business days since word of Pearl Abyss selling off CCP Games hit the news. But over the last 5 days, the price of the company's stock has fallen nearly 13%. Something to think about as we discuss the transaction.

Pearl Abyss Sells CCP Games To CCP's Management Group

What was rumored in June 2025 finally came to pass on the final day of April 2026. Pearl Abyss sold off CCP Games to its current management team for $120 million (₩177.1 billion). Pearl Abyss announced the acquisition in September 2018 with the deal finalizing the following month. While the final total of the deal was $225 million and not the $425 million originally reported, Pearl Abyss' spending spree following its 2017 IPO may not have been totally wise.

While the numbers from 2026 are not known at this time, in the years 2019 to 2025 CCP Games generated approximately $412 million in revenue for Pearl Abyss. But revenue does not equal profits and by 2022 Pearl Abyss was seeing red numbers in its books. In the past four years Pearl Abyss posed net losses two times and operating losses the past three years. A Korean outlet provided the following information from Pearl Abyss:

CCP Games is an Iceland-based developer with a proven track record, having successfully serviced its flagship space-themed sci-fi game, 'EVE Online,' for over 20 years. Pearl Abyss acquired the company in 2018 with the goal of diversifying its portfolio and securing global IP.

However, persistent operating losses at CCP Games following the acquisition have placed a significant burden on Pearl Abyss' financial structure.

Consequently, analysts and industry experts view this sale as a highly positive signal. By shedding a loss-making subsidiary that had negatively impacted Pearl Abyss' consolidated financial statements for years, the company has resolved a key source of uncertainty. Having shed this financial weight, Pearl Abyss can now actively invest the substantial capital secured from the sale into the development and marketing of new IP.

Regarding the valuation of the sale, Pearl Abyss stated that the price was "determined objectively by comprehensively considering CCP Games' current business structure and market conditions."

I have to admit to a bias. After listening to Pearl Abyss' leadership evade, mislead, misdirect, and the unkind would say lie, about the state of Crimson Desert on the quarterly earnings calls over the last 5 years, I have about as much trust for what Pearl Abyss states as the investment analysts on those calls. Which is not much. If the investment analysts trusted Pearl Abyss we wouldn't have seen the company's stock drop 36.6% of its value in the two days following the release of Crimson Desert upon the early reviews of the state of the game.

Did Pearl Abyss Iceland, the holding company controlling CCP Games for Pearl Abyss, post losses every year? If I recall correctly, the answer is yes. But did the home office in Anyang contribute to the mess?

Let's go back to Crimson Desert. The game was originally supposed to launch in the final three months of 2021, not the first three months of 2026. Imagine what the profits would look like if a game launched every three years beginning in Q4 2021. With DokeV launching in either Q4 2024 or Q1 2025 the company probably doesn't experience any losses, whether net or operational.

Finally, what about Pearl Abyss' revenue from its cash cow, Black Desert? At the same time delays in launching Crimson Desert kept new revenue from arriving, the problems experienced by the Black Desert IP, particularly Black Desert Mobile, led to a 55% decrease in revenue from 2019 to 2024. Pearl Abyss was no longer pulling in the cash to fund any plans discussed at the time of the acquisition in 2018. While CCP Games revenue gains were the equivalent of finding coins between the cushions, the Black Desert revenue loss during that time exceeded the amount of money Pearl Abyss spent acquiring CCP Games.

Now for the fun part of these exercises: what comes next? Pearl Abyss Iceland and CCP Games usually submit their financial accounts to the Icelandic tax authority on the last day of April or the first two weeks of May. With the change in ownership I'm interested to see if the pattern holds.

My Predictions For 2026

Another year, another time to make a fool of myself by making predictions for the upcoming year. Personally I had a fairly good year but I don't place a lot of value on my fortune-telling skill. But I really do need to go back and review the predictions I made for 2025 and try to do a better job foretelling 2026.

Crowd Control Productions - Last year I predicted two things. First, that the company would meet Pearl Abyss' expectations of having at least ₩20 billion in revenue for each quarter of 2025. CCP has achieved that level of revenue for the last six quarters and with the launch of the Revenant expansion I don't see that changing.

The second prediction is more problematic. I predicted CCP would see a 10% growth in revenue, meaning either ₩90 billion or $64 million for the year. Through the first three quarters the totals were ₩65.5 billion/$46.4 million. Given the strength of the Catalyst expansion I still have an outside shot of getting this prediction correct but won't know until the next investors' call in February.

For 2026 I may go full fanboi on my predictions. CCP will continue to meet the ₩20 billion per quarter revenue guidance given to investors. I am also going to place a lot of faith in Vanguard and set my revenue prediction for the year at ₩99.0 billion/$70.0 million.

EVE Online - Don't worry, some of my predictions that involve both EVE and a sequel game in the IP will be listed with the other game. I'm going to give myself a half-a-point for calling the summer expansions a hodge-podge of ideas although I think Legion was heavily aimed at null sec. I was dead wrong about the winter expansion concentrating on The Deathless Circle. Instead players got a mining/industrial themed expansion. Players got armed industrial ships, not tech 2 Deathless Circle pirate ships.

In 2026 I am expecting the summer expansion to consist of a hodge-podge of ideas that won't fit nicely into the theme of the winter expansion. The summer expansion will launch in June with the introduction of a new pirate epic arc coming in July. I'm guessing something involving The Deathless Circle but Upwell counts as a pirate faction, right?

For the winter expansion, I think wormholers will receive a major update. CCP hasn't expanded the lore of the Sleepers in a long time. Considering the Drifters killed Empress Jamyl I back in 2015, wormholes and the lore is probably overdue for an update.

Now for a couple of predictions based on Jester's charts. First, the ending average concurrent users in 2026. Jester's graph is showing a 7-day moving average at the beginning of December of over 28,000 accounts logged in at one time. The 30-day moving average is moving upward and almost at 26,000 accounts. I am going to predict that at some point in 2026 the 7-day moving average of concurrent users will exceed 30,000 accounts and the 30-day moving average will end the year over 28,000 concurrent users.

Jester also has another chart displaying the average number of concurrent users logged in per year. Through November the number for 2025 was 22,635, or about 100 accounts less than 2024's average. I'm going to make the wild prediction that Jester's chart shows over 24,000 in 2026. I call the prediction wild as the amount would be the highest average amount of accounts logged in during a year since 2014's 27,490.

One last prediction. In 2025 the peak concurrent user mark for the year reached 41,322. In 2026 I predict the number will reach 42,500. I know, not much of an increase. But the increase would give 2026 the highest yearly PCU since the move to Alpha clones in January 2017.

EVE Vanguard - CCP Games does not have the greatest record with first person shooters. Last year I predicted a successful test of Vanguard in November or December. I'll take the cross-over Operation Nemesis event in September and October as being close enough to count. But I'll also take my prediction of the developers as shying away from null sec as a miss.

I am going to go out on a limb and say that Vanguard will indeed launch on Steam sometime in the third quarter of 2026. The delays for CCP's FPS games dating back to EVE Vegas 2018 are over.

EVE Frontier - I didn't really make a lot of predictions for Frontier in 2025. I did predict another round of venture capital funding but as far as I know that didn't happen. I'll have to count the next prediction as partially correct. CCP did announce how the developers have upgraded the Carbon engine to use Python 3.12 but EVE Online has not switched to the new version of the engine yet.

I will predict for Fanfest 2026 that CCP will present a video showing all the client differences between Online and Frontier. However, the video may not make it to the main stage of Harpa. I will also predict the crypto currency for Frontier will not appear for sale in 2026. If I'm wrong that means Pearl Abyss is in financial trouble and Crimson Desert flopped.

The mobile games - I am going to predict neither EVE Echoes or EVE Galaxy Conquest will shut down in 2026. That's about as far as I feel comfortable predicting.

Pearl Abyss - I managed to only make a prediction about the company returning to profitability in 2025. Once again, we'll need to wait until the February investors' call as the company only had made a net profit of ₩6.8 billion through the first 9 months of 2025. Given recent history the numbers could dip back into the red.

I will make one additional prediction about the South Korean game maker. Expect total revenue in 2026 to fall between ₩550 billion and ₩600 billion.

Black Desert Online - Looks like I was wrong about the revenue Black Desert would bring into Pearl Abyss' coffers in 2025. I predicted a 10% decline down to ₩215.0 billion. The IP, however, bounced back with ₩197.4 billion in revenue through the first three quarters of the year. The Black Desert IP may even see an increase in revenue if Pearl Abyss announces Q4 revenue exceeding ₩52.4 billion. Once again, we'll need to wait on the investors' call in February.

Crimson Desert - I finally got a prediction involving Pearl Abyss' upcoming single-player RPG mostly correct. I posted that I expected Pearl Abyss to announce in November the game would release in the first half of 2026. Pearl Abyss made the announcement in September.

My only prediction for the game is that between 2.5 million and 3 million copies of the game will sell in 2026.

Cloud Imperium Games - What a difference the leadership shakeup at Cloud Imperium had in 2025. Last year I made 4 predictions about CIG and got two totally wrong. First, I predicted a slight decline in year-over-year cash shop revenue down to $113 million. CIG is on pace for $155 million in revenue, an increase of over 30%. I was also wrong about sales during Invictus and IAE only totalling $46.8 million, with actual sales for the two biggest events on the calendar bringing in $59 million. The 15% reduction in new account creation I predicted for 2025 turned into a 45% increase instead. 

One I got partially correct was the prediction involving additional outside funding. I predicted Tencent would receive a 5-10% share of CIG in exchange for becoming the company's publisher in China. Instead, Keith Calder paid $5 million to increase his holding in CIG up to 22.4%.

Finally, I did get the closing of the Los Angeles area studio correct. Not much of a prediction, honestly, but CIG did try to hide the complete shutdown of the office so it counts.

Looking into the future I will make a prediction that will affect the rest of my predictions about CIG: Squadron 42 will launch in the fourth quarter of 2026. Given that, cash shop sales will increase 10% in 2026 up to $170 million. The figure will reach much higher if Squadron 42 sales are included in the cash shop counter.

As for new account creation, I am going to fudge the prediction and just say CIG will set a new company record, exceeding 2022's amount of over 871,000 accounts. One million new accounts would not surprise me.

I am going to predict a minor story will emerge in 2026: publication costs. Between the new server meshing technology introduced in 2025 and a surge in interest in Star Citizen, I think the publication line item will hit $90-$100 million in 2026. I also think we will see the number fall within $50-$60 million in the 2024 financial report which CIG has not published as I compose this post.

Star Citizen - I only made one correct prediction for 2025 out of three attempts. I was correct when stating dynamic server meshing would not appear last year. But I was incorrect in my prediction that the alpha 3.24 branch of the game would stay on the production servers until Q2. Also, my prediction that Nyx would not appear in the game in 2025 was incorrect. Admittedly CIG rushed the system into the game without all its planets, but officially the system was launched in 2025.

For 2026 I predict more of the same. Dynamic server meshing will not appear. Nyx, the system I thought CIG would introduce in 2026, will cause some consternation among players. The system will not be considered finished by the end of the year. Perhaps most importantly the capacity of single shards will not exceed 1000 players. That prediction is not necessarily a negative prediction as currently shards are set to handle up to 600 players.

Squadron 42 - I only made one prediction about SQ42 for 2025: Chris Roberts would announce Tencent as the publisher for the game at CitizenCon. Of course I was wrong. For 2026 I will make two predictions. First, the game will launch globally in Q4 2026. Secondly, globally does not mean in the Peoples Republic of China. SQ42 will not launch on the mainland in 2026. Look for Tencent to act as the publisher sometime in 2027.

I should predict the number of units sold in 2026. I believe CIG will announce between 2.5 and 3 million units sold. An impressive figure until one realized that half the figure will have been presales from before 2023 when Squadron 42 sales were disabled on the RSI website.

And finally, Final Fantasy XIV.

As much as I play Final Fantasy XIV I don't really dig into the game as much as I ever did EVE Online. Last year I predicted we would find out at Fanfest in November that Yoshi-P would announce players would return to the Eastern lands to visit the frigid waters of The Blindfrost. Well, none of that happened, with the next Fanfest set for Anaheim in April.

Now for my predictions. The next expansion will take place in the South Sea islands, the original home of the Lalafell. Which means Krile will either serve as the expansion's star or be the ongoing thread holding the multi-expansion story arc together, much as Alphinaud did in the Hydaelyn–Zodiark Saga.

I asked last week which mainline Final Fantasy game I should play. If my prediction is correct, the 8.0 expansion will heavily reference Final Fantasy X, specifically Spira. I guess I know which Final Fantasy game I'm playing next.

I am also going to go out on a limb and say Final Fantasy XIV will not launch its next expansion in 2026. Looking at the historical timings I just can't see a launch happening in December. Expansion launches have always occurred at least 3 months after the Japanese Fanfest, and the next one is on Halloween and All Saints Day. That would lead to a launch of the next expansion no sooner than January or February 2027.

And so concludes another round of predictions. One of these days I'll get more than half the predictions right.

CCP Games And Cloud Imperium Have Reasons To Be Happy This Thanksgiving

Happy Thanksgiving! While a lot of game companies have had a down year, a couple studios I follow have a lot to be thankful for this U.S. holiday. Perhaps not Square Enix, which is engaged in a global reorganization pulling itself back into Japan. But both CCP Games and Cloud Imperium are witnessing good news over the past 3-4 weeks.

First, let's start with CCP. The month of November started off well with the news that its parent company Pearl Abyss experienced both an operating profit and net profit in the third quarter of 2025. The last time that had happened was the first quarter of 2024. Hopefully the news that Crimson Desert has a solid release date of 19 March 2026 will help squash any rumors of the South Korean game maker needed to sell off CCP Games for cash.

But that's not all. CCP released its winter expansion for EVE Online, Catalyst, on 18 November. If the average concurrent numbers are any indication, the mining and exploration themed expansion was well received.

The first week peaked at over 41,000 accounts logged in

While not precise, Chribba's EVE-Offline.net shows an average of 28,000 logged in at any one time over the past 7 days. The average before was approximately 23,000. The peak number of users logged in occurred on Sunday, with 41,322 accounts online at one time. Combined with the dissolution of Pandemic Horde Sunday saw the highest PCU since 41,562 were logged in on 10 May 2020.

Despite the nice episode of The Scope, I'm not really sure how much of a war the conflict really was. I get the impression the campaign was more chasing Pandemic Horde and shooting their structures more than a proper full-scale war. I did check to see that the bubble-camp of the R-AG7W keepstar occurred before the launch of the expansion because that would definitely have inflated the numbers. Which is a good thing because major null sec conflicts tend to reduce player counts in the long run. I'm not really sure what will happen if a major null sec leader just walks away. Bobby Atlas departing EVE was over a decade ago.

The other game company is Cloud Imperium Games. Depsite what white knights might claim, at this time last year things weren't looking too good. But at the end of 2024 and the beginning of 2025 Chris Roberts instituted a leadership shakeup and a new software release schedule. Combined with an injection of cash from Keith Calder, CIG's second largest shareholder, CIG is once again setting financial records.

From the Roberts Space Industries website

On Tuesday the funding stats page on the RSI website passed the $900 million mark. As of 1800 UTC today the figure was up to $905.4 million. The surge in revenue is due to the Intergalactic Aerospace Expo, an annual event that begins the Thursday before Black Friday and ends the Thursday after perhaps the largest shopping day of the year. 

If CIG exceeding the $900 million lifetime amount isn't enough, the company also surpassed its record yearly total with six weeks to go in the year. As of the end of the day Wednesday, the CCU Game dashboard showed $130 million in sales so far in 2025. The previous record for a single year occurred in 2023 with a total of $117.6 million in sales. The company has an excellent chance to end the year with $150 million in online sales.

The other thing going right for CIG is the success of the sales despite dropping patch 4.4 the day before the IAE kicked off. I know, the event has the expected lag when so many people log into the game at once. Server meshing apparently hasn't solved that issue yet. But through day 7 of the 14 day event CIG recorded $18 million in sales. The record, set in 2023, was $24.5 million. With today looking like another day of $2 million in online sales, I really don't think the IAE will average less than $1 million/day during the event's second week.

I'll end this post with the lifetime revenue numbers for Cloud Imperium Games. I usually provide them in my monthly post on CIG's sales but with all the numbers flying around I thought I'd add the ones I've come up with.

Overall, the company has recorded $1.030 billion in confirmed revenue (the funding page & the 2023 financial report).

• Sales/Pledges: $905.4 million (through 27 November 2025 @ 1800 UTC)
• Other cash shop revenue: $2.3 million (through 31 December 2023)
• Subscriptions: $39.5 million (through 31 December 2023)
• All other sources: $82.6 million (through 31 December 2023)

In addition, the company has received a total of $68.25 million in outside investment, making the total amount raised through all sources for the project as $1.098 billion. I expect to start using the figure $1.1 billion starting tomorrow.

Elon Musk And CCP Games?

Before too much more time goes by I really need to make note of a post on X by the owner of the platform, Elon Musk. I just want to let people know I don't follow Musk. I would have missed this tidbit if not for the folks over on MassivelyOP.com.

The post in question

At the time Musk made the post he probably was in London, home of CCP Games' CEO Hilmar Veigar Pétursson's office. Since the post was about artificial intelligence, in reply to a writer who concentrates on AI, I thought asking Musk's AI program Grok appropriate to explain the post.

Elon Musk's mention of a potential AI game collaboration with Eve Online reflects a bold shift, leveraging AI to create experiences beyond human design, aligning with recent advancements in generative AI, such as OpenAI's DALL-E, which produced the 'Critterz' film in just nine months with a $30 million budget.



This idea builds on Eve Online's unique player-driven economy, supported by a 2019 study from the Journal of Virtual Worlds Research showing its 500,000+ active users generate real economic value through in-game trade, suggesting AI could enhance this complexity rather than replace it.



The timing coincides with xAI's growth and the rise of blockchain-based gaming (e.g., Xai's Layer 3 solution), hinting at a future where AI-driven games could integrate decentralized, persistent worlds, challenging the centralized control of traditional MMOs.

While the above may be an AI hallucination, the reasoning tracks. Plus, data centers in Iceland have advantages not found in other locations. Well besides the fact that CCP Games was one of the original anchors for Verne Global's data center back in 2012.

The creator of the EVE Online virtual world, CCP Games, chose Verne Global based on the site’s renewable power grid and strategic location between its two primary markets. Furthermore, a key factor is Verne Global’s ability to offer fixed power pricing for extended contracts.

“The primary reason for selecting Verne Global above all other alternative sites were the availability and predictability of power and the option of securing long-term price guarantees at attractive price levels,” explained CCP’s IT Director, Ingvar Bjarnason...

The new data center uses Iceland’s vast supply of hydroelectric and geothermal energy, and also takes advantage of the country’s cool climate, which allows for free cooling all year round. Modular specialist Colt customised the data center’s hall design, equipping it with cooling modules that allow to cool servers using air from outside the data center.

Well, a little more went into the arrangement since CCP Games and Verne Global had intertwining financial connections due to the involvement of Bjorgolfur Thor, Iceland's first dollar billionaire, in both companies. But with AI requiring the creation of a lot more data centers, operating in Iceland would provide an advantage to Musk's AI initiatives.

But the biggest reason for making a note are the rumors of Pearl Abyss looking to sell off CCP Games. At the time the rumors first emerged I thought someone interested in cryptocurrencies would show interest but I couldn't really think of a good buyer. But throw in Musk's interests in crypto as well as AI and maybe the idea isn't as far-fetched as when I first read about the X post on MassivelyOP.

Predicting The Future Of EVE Online's Global PLEX Market

When I first started looking into regulations surrounding online games I actually thought about EVE Frontier. I figure a non-zero chance exists that government regulations concerning crypto-currencies will prevent the game from ever seeing a commercial launch. Then, an unusual event occurred: the creation of a global PLEX market. While CCP Games has publicly stated the EVE Online and EVE Frontier development teams are kept completely separate, I pretty sure the same corporate lawyers serve both games. So when the global PLEX market was announced, I decided to see if some of the proposed regulations that would affect Frontier would also apply to Online.

The result of the research was a 2600 word report from Copilot that I edited, added a couple of things to, and published last week. But where the New Eden economy is concerned looking backward is only valuable if the history accurately informs predictions for future developments. Today's post is an effort to look forward 12-18 months to predict what a more finished form of the global PLEX market will look like, keeping in mind upcoming governmental regulations like the European Union's Digital Fairness Act.

First, I needed to come up with a description describing the purpose of the global PLEX market. I found one in an EU working paper published in October 2024: the mixed pot.  The mixed pot model involves a single in-game currency like ISK that players can either earn through gameplay or buy outright with real money. Under this design, no technical distinction exists between "earned" and "purchased" units of currency once they’ve entered a player’s balance—hence all tokens sit in one shared "pot."

The mixed pot model has three key characteristics I think most EVE players would consider features:

• Uniform utility: Whether a token was earned or bought, it grants the same access—to items, boosts, entry fees, etc.
  
  
• Dual accrual paths: Players who invest time can accumulate currency via quests, achievements, or play-to-earn loops, while others may skip the gameplay via direct purchase with real world currency.
  
  
• Seamless interchange: Games often allow conversion between earned/purchased tokens at a fixed or dynamic rate, or simply don’t distinguish them at redemption.

As expected, though, the EU regulators who put the document together have different ideas. Here are four areas of concern.

• Value opacity: Players can’t easily tell how much “free” play is actually worth. If this seems weird, I think so too. I believe the regulators would like CCP to change the wallet UI to hold how much ISK a player has earned in-game verses that purchased on the market.
  
  
• Fairness concerns: If paid tokens speed progression or confer exclusive perks, it risks turning skill-based systems into pay-to-win scenarios—running afoul of “fairness by design” principles.
  
  
• Refund complexity: When consumers request refunds, providers struggle to identify which tokens originated from purchases versus gameplay, complicating chargebacks and consumer rights enforcement. This goes back to the split of in-game money mentioned in the first point.
  
  
• Financial safeguards: If mixed-pot tokens fuel chance-based mechanics such as Hyper cores or Abyssal Mutaplasmids, they may trigger gambling or e-money regulations in some jurisdictions.

Next comes the predictions. Some of these don't require trying to adhere to regulations coming out of Brussels.

The NPC operator of the market - As the rules of the global PLEX market differ from all other markets, the market needs additional lore. The obvious operators? InterBus. I'm sure the developers can come up with a name with a slick acronym.

Direct link from the New Eden Store - Just as the New Eden Store has a direct link from the Paragon Hub, so too will the global PLEX market.

Button on the NeoCom - As a revenue source, the global PLEX market will have its own button on the NeoCom to make access easier. Also to differentiate the market from the rest of the markets that only exchange in-game items.

Elimination of all taxes and fees - I believe the introductory dev blog alluded to the possibility, but in the interest of making all transactions involving PLEX as simple as possible, all taxes and fees will be removed.

Removal of PLEX from all contracts - With no taxes or fees and a single market, the only other way to vary the price of PLEX is in contracts. Removing the ability to trade PLEX via contract makes the transactions as easy and transparent as possible.

Display of real world currency equivalents - Reading the proposed regulations I see no way that the developers do not at least display a dollar/euro/pound/yen conversion of the price of 1 billion ISK. I see a minimum of three places the real world value will be displayed. First is the value of the cheapest buy order. Next is the value of the cheapest sell order. And finally on the confirmation box when asked "Are you sure you want to make this transaction?"

Keeping track of PLEX for ISK transactions - Honestly, I don't see a way of enforcing refunds for trades between players. But I do think a requirement to show players how much real money they spend will be met.

I think in the next year or so regulations out of the EU will affect the online video game industry. From lootboxes to virtual currency sales a lot of companies will need to alter their business practices. But EVE Online and CCP Games won't walk away unscathed. The only question is what EVE will look like once the fallout settles down. Hopefully my predictions are not totally off-base.

More On Pearl Abyss' Plans To Sell CCP Games In 2025

The small flurry of news surrounding MTN's disclosure of Pearl Abyss offering CCP Games for sale last week didn't get a reply from the Icelandic studio. But Insider Gaming did tease out a statement from Pearl Abyss itself.

While we regularly review various strategies to enhance our global competitiveness, no decisions have been made, and we have nothing to announce at this time.

A nice non-denial denial. Having covered Pearl Abyss quarterly earnings calls for 6 years the statement sounds legitimate. Insider Gaming did try to throw doubt on MTN's report by reminding readers the South Korean outlet previously claimed Pearl Abyss’ Crimson Desert was set to release around 2 November. A date which Pearl Abyss has denied.

On Thursday I speculated Pearl Abyss might want to divest itself of CCP Games to make the South Korean studio more attractive to Chinese game companies like Tencent and NetEase. I decided to dive a little deeper into the theory and asked Copilot for reasons the Chinese companies would like to acquire the South Korean studio.

I think Copilot now considers me a bit of a simpleton. The AI program let me know it’s "possible" (the word was actually italicized) -- but not particularly likely -- that Tencent or NetEase would want to acquire Pearl Abyss outright. Tencent or NetEase might be more interested in cherry-picking assets -- like CCP Games or publishing rights -- rather than buying Pearl Abyss whole.

Further questioning of the AI provided five reasons why Tencent or NetEase would prefer to just purchase CCP Games instead of the entirety of Pearl Abyss.

Focused Acquisition - Tencent and NetEase are known for targeted, strategic acquisitions. CCP Games offers a specific value proposition: EVE Online, its tech stack, and its Western market presence. Pearl Abyss, on the other hand, comes with additional baggage—including Black Desert, Crimson Desert, and other projects that may not align with Tencent or NetEase’s current goals. Buying just CCP allows them to avoid inheriting unrelated assets or liabilities.

I'll admit that the evaluation of Black Desert and Crimson Desert as undesirable baggage while EVE Online is seen as a valuable asset made me smile in real life. Conventional wisdom, or at least the websites I read, has the comparison reversed.

Cost Efficiency - Pearl Abyss reportedly paid $225 million for CCP Games in 2018. If CCP is now underperforming and up for sale, Tencent or NetEase could acquire it at a discount, without paying a premium for Pearl Abyss’s broader portfolio.

Just on a personal note, I got a kick out of Copilot's sourcing for the price of Pearl Abyss' acquisition of CCP: MassivelyOP and The Ancient Gaming Noob. I, of course, linked back to my own post on the subject.

Regulatory Simplicity - Acquiring a Korean-listed company like Pearl Abyss would trigger complex regulatory reviews in South Korea and China. A direct purchase of CCP Games -- an Icelandic studio -- would be simpler and faster, especially given China’s tight scrutiny of outbound investments.

Something Copilot didn't bring up was the geo-political aspects of a major Chinese company getting into Iceland. The more influence the other CCP (Chinese Communist Party) has in Iceland, the better for its ambitions in the Arctic.

Western Market Access - CCP’s studios in Reykjavík, London, and Shanghai offer Tencent or NetEase a ready-made Western development and publishing footprint. That’s a strategic asset as both companies seek to expand globally amid domestic regulatory constraints.

I'm pretty sure this point was directed more toward NetEase as Tencent already has a very sizeable presence in North America and Europe. Still, Copilot made a note that Tencent’s expansion strategy is clear: invest in or acquire studios with strong IP, technical talent, and global reach, especially in regions with fewer regulatory hurdles than China.

Web3 Experimentation (Outside China) - CCP is investing in blockchain gaming with titles like EVE Frontier. While crypto is restricted in China, Tencent and NetEase might see CCP as a sandbox for Web3 experimentation—without exposing their core operations to regulatory risk.

According to Copilot, Chinese companies can engage in crypto activities outside China as long as they obey the following conditions:

• Avoid offering crypto services to Chinese residents, even if operating abroad.
• Comply with foreign regulations, including anti-money laundering (AML) and know-your-customer (KYC) rules.
• Be mindful of geopolitical scrutiny, especially in countries like the U.S., where Chinese tech firms face heightened national security concerns.

Going through the above information, I decided to ask one more question. Which game would intrigue potential buyers of CCP Games more, EVE Online or EVE Frontier? By a wide margin the answer was EVE Online.

Copilot described the original game in the franchise as proven, profitable, and iconic with the following strengths:

• Revenue Anchor: EVE Online generated around $60 million in 2024 (I would say more like $54 million), making it CCP’s primary source of income.
• Loyal Community: It boasts a fiercely dedicated player base and a unique, player-driven economy that few MMOs can match.
• Longevity: With over 20 years of continuous operation, it’s a rare example of a live-service game that’s still thriving.
• Strategic Value: For buyers like Tencent, NetEase, or EA, EVE Online offers a ready-made MMO ecosystem with global reach and monetization potential.

EVE Frontier, on the other hand, is described as high risk with high uncertainty:

• Blockchain Focus: Frontier is CCP’s Web3 experiment, built around blockchain and crypto mechanics. That’s a red flag for many traditional publishers due to regulatory and reputational risks.
• Unproven Market: It hasn’t launched yet and faces skepticism from both gamers and regulators.
• Creative Gamble: While it’s ambitious—described as a “massively moddable multiplayer online spaceship survival horror RPG”—it’s still speculative.

Copilot concluded with the observation that EVE Online is the asset buyers trust, while EVE Frontier is the bet they’d have to believe in. Most acquirers would likely view Frontier as optional—interesting if it works, but not a dealmaker.

A lot of the above conflicts with my hot takes from last Thursday. But since I write for myself I have the opportunity to go back and review if my initial assumptions are correct. While I still don't rule out the possibility of Pearl Abyss selling itself off, the way the process works may wind up vastly different.

Pearl Abyss Plans To Sell Off CCP Games

In a not entirely unexpected move South Korean-based Pearl Abyss is looking to sell off its Icelandic subsidiary CCP Games. The South Korean financial & economic news Money Today Network broke the story based on an interview.

Pearl Abyss is putting its subsidiary CCP, which developed 'EVE Online', up for sale on the market. The reason is interpreted as CCP acquiring it for 250 billion won in anticipation of the fan base it secured through 'EVE Online' and expansion of its mobile platform, but it fell short of initial expectations.

According to an interview with Money Today Broadcasting MTN on the 19th, Pearl Abyss and CCP have selected an underwriter for the sale of CCP and are sounding out multiple game companies for their interest in acquiring it.

Pearl Abyss launched an IPO in September 2017 bringing in $165 million. The company used the proceeds primarily to fuel global expansion and invest in new game development. A significant portion went into scaling up operations, including establishing overseas subsidiaries and enhancing marketing efforts for Black Desert Online in international markets. They also channeled funds into developing new titles like Crimson Desert and DokeV, aiming to diversify their portfolio and reduce reliance on a single franchise.

The biggest acquisition occurred in September 2018 with the purchase of CCP Games. The initially announced purchase price of $425 million was reduced down to $225 million as the studio failed to meet certain financial conditions. For example, CCP and its new Chinese partner NetEase were unable to reestablish EVE Online service in China until the first half of 2020. 

The biggest disappointment for Pearl Abyss probably was the failure of CCP to immediately launch a FPS game set in the EVE universe. Despite presenting a playable demo of a game known as Project Nova at EVE Vegas in October 2018, the project was shut down in February 2020. CCP continued to work on an FPS game, with EVE Vanguard currently listed but unavailable on Steam.

As often happens with financial drama involving CCP, a loan is involved.

In October 2023, the Group financed USD 50,000,000 from Pearl Abyss Corp. to repay the existing borrowings from banks and other financial institutions in a single loan agreement arranged by The Korea Development Bank. The interest period is 12 months and the interest rate is fixed at 4.6%. Interests are paid every anniversary but the loan principal is due in October 2026.

Any party purchasing CCP Games will also need to pay back the $50 million loan to Pearl Abyss. Something tells me the South Korean company can't afford to refinance the loan to its subsidiary as I honestly don't think CCP will have the ability to repay the loan on time.

Game revenue since the IPO funded spending spree

But while CCP's financial performance may not have met expectations, those of Pearl Abyss' cash cow in comparison utterly collapsed. One example was the cancellation of Tencent's contract to run Black Desert Mobile in China early. Instead of running through April 2025, service ended on 27 January. Since 2019, Black Desert revenue declined over 55% when converted to U.S. dollars. In comparison, CCP's game revenue increased by almost 25%. 

The same holds true concerning game development. While producing two mobile games with two other games under development six years later is probably not what Pearl Abyss expected, CCP outperformed the South Korean studio. Crimson Desert was supposed to launch in the second half of 2021 and is now expected to launch in the fourth quarter of 2025. Pearl Abyss also had to cancel development of DokeV and Plan 8 until Crimson Desert is complete. In fact, Pearl Abyss' ability to support CCP's development efforts is limited, as was shown by the Icelandic studio's reaching out to outside venture capitalists for funding to develop EVE Frontier.

Now for my hot takes. Who do I think will purchase CCP Games? Cross off the list any Chinese company like Tencent or NetEase. The hottest reason for acquiring CCP is EVE Frontier. The Chinese Communist Party is not a big fan of cryptocurrencies, having banned them in September 2021.

The People’s Bank of China, the country’s central bank, said Friday that cryptocurrency transactions are illegal, saying such currencies “do not have legal tender status” and therefore “cannot be circulated as currency in the market.”

In a statement, the bank said that bitcoin and other virtual currency transactions have disrupted economic and financial order, contributing to a rise in “money laundering, illegal fund-raising, fraud, pyramid schemes, and other illegal and criminal activities.”

Crypto transactions are now considered criminal financial activity in China, the bank said, and the country will “resolutely curb the hype of virtual currency transactions, severely crack down on illegal financial activities and illegal criminal activities related to virtual currencies, protect the safety of the people’s property in accordance with the law, and make every effort to maintain economic and financial order and social stability.”

Any door the Chinese government leaves open for people to move wealth out of the country tends to lead to a stampede.

According to the Chainalysis Blockchain data platform, more than $50 billion worth of cryptocurrency left East Asian accounts to areas outside the region between 2019 and 2020. As China has an outsized presence in East Asian cryptocurrency exchanges, Chainalysis staff believe that much of this net outflow of cryptocurrency was actually capital flight from China. Although Chainalysis does not have a definitive figure for how much capital fled China between 2019 and 2020, they estimate that it could be as high as $50 billion.

If not one of the giants out of China, then who? My guess is a venture capital firm heavily interested in cryptocurrencies. Andreessen Horowitz led a $40 million round of funding just to be involved in the project. Would another group want to own the whole thing?

I do want to conclude with a final question I haven't seen asked. Is Pearl Abyss preparing itself for sale? In hindsight the sale of CCP's Newcastle office at the end of 2017 was a prelude to selling itself to Pearl Abyss. Selling its VR studio to Sumo Digital cleared away some business Pearl Abyss didn't want to deal with. Would selling off a studio developing a blockchain game clear the way for Tencent to purchase Pearl Abyss?