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Showing posts with label eve_valkyrie. Show all posts
Showing posts with label eve_valkyrie. Show all posts

Monday, July 4, 2022

CCP Shuts Down Its VR Titles

The day finally came. CCP Games will no longer support its virtual reality titles EVE Valkyrie, EVE: Gunjack, EVE: Gunjack 2, and Sparc on 5 August 2021. The end of the line was obvious to all with the sale of CCP's Newcastle studio to Sumo Digital at the end of 2017.

Announcement of a dead game on dead forums

I'm not sure how much CCP spent to keep the game servers up, but apparently more than the games brought in. One thing we know for sure, however. With no new games on the horizon, we'll soon know just how EVE Online is doing financially. Probably in 2022.


Friday, November 3, 2017

CCP's Reorganization And Move Away From VR: What We Know

On Monday, news emerged from Iceland that CCP, the maker of EVE Online and EVE: Valkyrie, planned to make a major change in direction. The news website Icelandic Monitor (mbl.is) reported that CCP would suspend development of new virtual reality games as well as engage in a major restructuring of the company.
"The Icelandic vi­deo game comp­any CCP plans to launch virtual reality on the shelf for the next 2-3 ye­ars, close its Atlanta office and sell its Newcastle office. Overall, the comp­any's changes will af­fect about 100 empl­oyees of the comp­any by more than 370, of which about 30 in Ice­land. However, their compon­ents will be of­f­ered to move between offices. CCP empl­oyees were notified of the changes today."
CCP's CEO, Hilmar Veigar Pétursson, later on Monday issued the following statement:
"Today we have made tough, but important, changes to CCP in response to how we see the gaming market evolving in the coming years. We have been front and center in the second wave of VR and our belief in the long-term transformative power of the technology remains strong.

"Despite the success of the VR games we have released we will be shifting our focus to our PC and mobile initiatives, and will be centralizing those initiatives, along with the support of our existing VR games, to our offices in Reykjavík and London. We will continue to support our VR games but will not be making material VR investments until we see market conditions that justify further investments beyond what we have already made.

"I am very proud of our VR games and, more importantly, of the people here who made them.

"These changes in strategy come with some tough decisions relating to our overall structure as a company. CCP is in a strong position to make these changes, and we are taking great care to support our departing employees to the very best of our ability. We will be offering relocations to some to our London office where we will be building up our efforts in addition to our development activities in Reykjavík."
In the wake of the announcement, many outlets reported that CCP was cancelling all work on virtual reality games. But as the initial report from Icelandic Monitor indicated, CCP was only suspending work on new VR games for 2-3 years. In a correction, Polygon reported that CCP would continue to maintain both EVE: Valkyrie and Sparc out of its London studio. CCP also posted an update on the near term future of its Newcastle studio on the Valkyrie forums:
"As you may have heard, we announced today that we are working with another company to transition the ownership of CCP’s Newcastle studio into new hands.

"What does this mean for everyone’s favourite first-person spaceship shooter? Well, for starters we can confidently confirm that EVE: Valkyrie – Warzone is not going away. We love the game just as much as we love our players, so you can rest assured that we’ll continue to support the product into the future.

"The development team at the Newcastle studio will remain intact and complete work on the upcoming Winter Update for EVE: Valkyrie – Warzone. So don’t panic! You’ll still receive in-game support for custom matches, tournament tools and a spectator mode before the end of this year.

"Our CEO Hilmar Veigar Pétursson said, 'I couldn’t be more proud of our VR games and, more importantly, of the people here who made them.' This statement rings true for everyone at CCP.

"This is not the end of EVE: Valkyrie, not by a long shot. It’s the just the beginning of a new chapter.

"Welcome to the next life."

In addition to selling the Newcastle studio, CCP is shutting down the Atlanta office, the home of Sparc and CCP's VR Labs research unit. The Icelandic game company established a presence in Georgia by acquiring White Wolf Publishing in 2006. CCP attempted to create a game, World of Darkness, based White Wolf's Vampire: The Masquerade IP in Atlanta, only to shut down the effort in 2014. CCP eventually sold White Wolf to Paradox in October 2015, maintaining a small staff in Atlanta. Monday's announcement marks the end of CCP's presence in North America.

Of note, the announcement also marks the departure of the last former White Wolf employee from CCP. Ned "CCP Manifest" Coker, CCP's Senior PR and Social Media Lead, apparently chose not to relocate from Atlanta and will leave the company after 10 years.


UPDATE - 5 November 2017: I've received word that CCP Manifest was not offered to relocate outside the U.S.

The original announcement also seems to have caused confusion. While the BBC reported the number of layoffs at 30, gaming sites like PCGamer reported the number at approximately 100. I think the key word is "affected". Affected does not necessarily mean laid off. For example, the developers working in the Newcastle studio on EVE: Valkyrie weren't laid off. They will still work on EVE: Valkyrie until the sale of the studio is complete. But at the end of the day, those working in Newcastle will no longer receive paychecks from CCP. Whether they keep receiving paychecks or need to find new jobs depends on whoever purchases the Newcastle studio.

I think a lot of players thought that the changes would not affect EVE. Someone reading the post made by EVE's community manager, CCP Falcon, on the EVE Online forums may have assumed so:
"Just a quick follow up to this, given that there are questions about EVE, and the future.

"Obviously this is a really difficult day for CCP, and it’s been super tough to see a lot of our friends and colleagues end their journey with CCP.

"With regards to EVE, it’s kind of bittersweet that this puts us in a more solid position going forward, as a lot more focus is back on EVE Online, its services and all the technology and support around it.

"The EVE Online development team was not impacted at all by these changes, and remains the same size, working toward the same goals and features that have already been announced.

"We still have very big plans for EVE Online, and everything we’ve announced, plus more, is still going ahead, so there shouldn’t be any concerns from our pilots in that respect.

"There’ll be more information about other projects, studios and suchlike in the coming days, and there’s also communication going out soon to the Valkyrie community too that has further information." (emphasis mine)
But the statement did say that the changes would affect 30 people in Reykjavik, which probably meant 30 people would lose their jobs. While the development team emerged unscathed, the community team was hit hard. After the dust settled, the community team was cut down to two people, CCP Falcon and CCP Guard.


Another group in Reykjavik probably hit hard by layoffs was the group working on Project Nova. With the announcement at EVE Vegas that CCP was working with Sumo Digital to develop the game, some, if not most, of the developers working on the game probably became superfluous. This is just speculation as I did not see any proof of such layoffs on social media.

The last of CCP's studios, in Shanghai, did not receive much attention in the press. The Iceland Monitor article mentioned CCP is looking to work with Chinese companies to produce mobile games. Hilmar stated his belief that complex mobile games will become popular in the West in the next 3-5 years. The little we know about the changes in the Shanghai studio seem to confirm the shift away from game design. CCP Frame, a producer on both Gunjack and Gunjack 2, was one of the people let go on Monday.


I'm not sure exactly what happens moving forward. Speculation is running through some quarters that the venture capitalists who invested in CCP in 2015 are looking for a return on their money sooner rather than later. Others believe that the move to a free-to-play model failed to attract the anticipated revenue, thus requiring the restructuring. Of course, the skeptics of the current wave of virtual reality point to Monday's announcement as proof that VR is bad. All I do know is that the ramifications of the decisions made at CCP's headquarters are just beginning and we need to keep an eye on the news to see how the story ends.

Monday, December 12, 2016

The Newest Rumor Of A Sale Of CCP Games

We almost survived 2016 without a financial controversy concerning CCP. Until Friday, that is, when Bloomberg brought up the possibility of an impending sale of the Icelandic game company to an unnamed buyer:
CCP hf, the Icelandic game developer that created the cult classic Eve Online game, is exploring strategic options including a sale of the business after receiving interest from potential bidders, according to people with knowledge of the matter.

The closely held company’s owners, which include European investor Novator Partners LLP, U.S. investment fund General Catalyst Partners LLC and venture capitalist New Enterprise Associates Inc., are discussing whether or not to proceed with a sale, the people said, asking not to be identified because the deliberations are private. A sale of CCP could value the business at as much as 900 million euros ($955 million), the people said.
Through the first few read throughs of the article, I couldn't quite believe the numbers in the article. Was CCP really valued at $300 million in November 2015? Are prospective buyers actually offering up to $955 million? The figures sounded like person or persons unknown spreading misinformation about CCP to a gullible press.

So does the Bloomberg story have any basis of fact? I figured the easiest way to determine the validity of the story was to look at the valuation of CCP the parties used when New Enterprise Associates and Novator Partners gave CCP $30 million USD. But in looking back, I realized the story involves more than just a simple calculation.

Friday, December 11, 2015

EVE: Valkyrie To Ship With The Oculus Rift

If one ignores the drama coming out of the "EVE community," CCP has had a really good past 30 days. On November 10th, CCP announced that EVE: Gunjack would launch as a first day title of Samsung's Gear VR. CCP followed that up two days later with the reveal that venture capitalists New Enterprise Associates and Novator Partners LLP were investing $30 million USD into CCP to fund the development of virtual reality games. Then on Tuesday CCP announced the hire of Maria Sayans from DICE to oversee "the company’s total relationship with its customers, overseeing CCP’s Marketing, Sales, Web Development, and Customer Services teams in Reykjavik, Shanghai, Atlanta, and Newcastle." Coming from EA and having worked on the marketing side of the Battlefield 4 launch, CCP probably hired someone who won't turn and run at the sight of the posting on Reddit.

But the news got a little better yesterday. Oculus announced that EVE: Valkyrie will ship with every pre-ordered Oculus Rift. That is a big deal. Not only will CCP make some nice money off the deal, but EVE: Valkyrie will get a lot of exposure. I'm pretty sure people will want to try the game at least once. If the game is as popular with the general public as with the EVE players who have attended various events over the past two years, Valkyrie could wind up as the "killer app" for the Oculus Rift. And with Valkyrie also slated to appear on the PS4 when Sony's VR headset comes out sometime next year, CCP may have a hit on its hands.

I have to say that I think CCP had a pretty good year in 2015, despite the declining peak concurrent user numbers in EVE. I think they set their financial house in order, although I always worry about hubris popping up and spoiling things. But I was really impressed with their work in the VR realm. Between Fanfest and EVE Vegas I got the chance to experience all of CCP's games and tech demos. Quite frankly, the two least impressive of those experiences were Gunjack and Valkyrie. So I'm feeling pretty good about CCP's future prospects right now. Hopefully, I'm not looking at the world through rose colored glasses.

Friday, November 13, 2015

CCP Gets A New Investor

Last night I worked pretty late and didn't feel well, but when I read the story in Variety about CCP receiving $30 million USD in funding to help develop virtual reality games, I knew I had to at least throw something together for today's post. To start with, here is CCP's press release about the story:

CCP GAMES RAISES $30 MILLION TO BOLSTER VIRTUAL REALITY DEVELOPMENT EFFORTS

Funding from NEA and Novator Partners LLP Will Strengthen CCP’s Growing Slate of VR Initiatives

12 Nov 2015 – Reykjavik, Iceland – Privately held CCP Games, the leader in virtual reality immersive technology, today announced that it has raised $30 million to bolster the development of virtual reality (VR) content. New Enterprise Associates led the investment, with participation from private equity firm Novator Partners LLP.

The investment will be used to further position the company to drive innovation in VR as the technology begins to transform the entertainment industry.

Harry Weller, General Partner at NEA, has joined CCP’s Board of Directors and Andrew Schoen, also of NEA, will be joining as Deputy Director.

CCP has announced two VR games slated for release in the next eight months: EVE: Valkyrie will launch with the Oculus Rift in spring 2016 and PlayStation VR in the first half of 2016 and is being created at CCP’s Newcastle studio. Gunjack, in development at the company’s Shanghai studio, is scheduled for release on Samsung’s Gear VR platform later this month.
“We believe VR will revolutionize not just videogames, but the wider technology and media industry as a whole,” said Hilmar Veigar Pétursson, CEO of CCP.  “We were there at the beginning, and this investment will give us strength to maintain our leading development efforts.”

“We’ve been admirers of CCP for quite some time,” said Weller. “Their legacy with EVE Online and early investments in VR have put them in a leadership position, and we want to partner with them to further build on the great platform they have already established.”

CCP Games was founded in 1997 in Reykjavik, Iceland. With the launch of EVE Online in May 2003, CCP established itself as one of the most innovative companies in interactive entertainment, winning numerous awards and receiving critical acclaim worldwide. CCP’s major shareholders include Novator, General Catalyst, and NEA. 

More information about CCP Games can be found at //www.ccpgames.com/

More information about CCP Games’ products (including EVE:Valkyre and Gunjack) can be found at http://www.eve.com/

More information about NEA can be found at http://www.nea.com/

More information about Novator can be found at http://novator.co.uk/

About CCP

CCP is a leading independent game developer and has been praised for its artistry, game design and unique player-driven, infinitely scalable storytelling narratives. CCP is the creator of the critically acclaimed science-fiction game EVE Online (PC/Mac), DUST 514®, a groundbreaking, free-to-play, massively multiplayer online first-person shooter for the PlayStation®3, and Gunjack™, a virtual reality action game for the Samsung Gear VR mobile platform.  The company is currently developing EVE: Valkyrie™, a multiplayer virtual reality spaceship dogfighting shooter for PCs and the PlayStation®4. Founded and headquartered in Reykjavik, Iceland, in 1997, CCP is privately held, with additional offices in Atlanta, Newcastle, and Shanghai. For more information, visit www.ccpgames.com.

About New Enterprise Associates  
New Enterprise Associates, Inc. (NEA) is a global venture capital firm focused on helping entrepreneurs build transformational businesses across multiple stages, sectors and geographies. With nearly $17 billion in cumulative committed capital since inception, NEA invests in technology and healthcare companies at all stages in a company's lifecycle, from seed stage through IPO. The firm's long track record of successful investing includes more than 200 portfolio company IPOs and more than 320 acquisitions.www.nea.com.

About Novator Partners LLP

Novator Partners is a London-based investment company led by Thor Bjorgolfsson. Over the last 10 years Novator has completed a significant number of investments in sectors including telecommunications, pharmaceuticals, technology, financial services, clean energy, consumer products and real estate. The Novator team is highly experienced in a wide range of situations - from traditional private equity to special situations including transforming investments for successful exits, and in private and publicly listed companies.
I know, I know. Doing a copy/paste of an entire press release is a bad practice unless I have some additional facts that others aren't releasing. Like I mentioned at the top of the post, I don't feel too good so I'll just pull some stuff out of my notes. Hopefully some will find these items of value.

Over at MassivelyOP, Editor-In-Chief Bree Royce found the fact that two members of NEA will join the CCP Board of Directors significant, so I'll start with a quick look at the board.

To my knowledge, the last time the membership of the board of directors for CCP changed was on 11 April 2013. In response to a gender equity law passed in March 2010, CCP shuffled its board of directors. Removed were Sigurður Ólafsson and Vilhjálmur Þorsteinsson. Sigurður, CCP’s former marketing director, was made an alternate member of the board. Vilhjálmur is the Treasurer of the Social Democratic Alliance (first elected to the position in 2011). The Social Democratic Alliance lost half its seats in the 2013 parliamentary elections. Vilhjálmur was replaced as chairman of the board by Birgir Már Ragnarsson, a partner and General Counsel of Novator Partners LLP.

Added were Liv Bergþórsdóttir and Ragna Arnadottir. According to Bloomberg, Liv is Chairman of the Board of WOW Air and the CEO of the telecommunications company Nova. Nova is owned by Novator Partners LLP. Ragna Arnadottir is a former head of The Icelandic Ministry of Justice and Human Rights (2009-2010) and is currently the deputy CEO of Landsvirkjun, the national power company.

Also leaving the board was David P. Fialkow, but he was replaced by another member of General Catalyst Partners, Adam Valkin. General Catalyst Partners lists CCP as one of the investments that Valkin manages. Interestingly enough, Fialkow serves on the board of Verne Global with Birgir Már.

The last member of the board is Stephen “Steve” Wiecks, one of the founders of White Wolf Publishing. Considering the recent sale of White Wolf to Paradox as well as the gender equity law that companies with more than 50 employees have at least 40% of both genders represented on their boards, I presume that Wiecks is no longer on CCP's board of directors. Assuming that Wiecks is out, here is what I believe is the current make-up of CCP's board.

  • Birgir Már Ragnarsson (Chairman) - Partner and General Council, Novator Partners.
  • Ragna Arnadottir (Vice-Chairman) - CEO Landsvirkjun. What I call the government seat on the CCP board.
  • Adam Valkin - Managing Director, General Catalyst Partners.
  • Liv Bergþórsdóttir - CEO Nova, a Novator Partners company.
  • Harry Weller - General Partner, New Enterprise Associates.

As for Andrew Schoen of NEA becoming a deputy director, that's not really a seat on the board. In the past, I have seen those positions described as alternates and they do not appear to count as members of the board for purposes of the gender equity law. When Sigurður Ólafsson was removed from the board in 2013, he was made what was, at the time, described as an alternate director. For my list of alternate, or deputy, directors, I have:


Sorry MassivelyOP, but I think you got one of your facts wrong.

Speaking of investors, how much of a stake does up to $30 million USD get NEA in CCP? First, let's start with a look at the top 10 investors in CCP as of the end of 2013.

  1. NP ehf. - 29.8%
  2. Teno Investments S.Á.R.L. - 23.4%
  3. Sigurd Harðarson - 9.3% (founder of CCP)
  4. Hilmar Veigar Pétursson - 5.2% (CEO)
  5. Matthías Guðmundsson - 3.1%
  6. Meson Holding S.A. - 2.5%
  7. CCP Holding S.Á.R.L. - 2.2%
  8. Guðmundur Kristinsson - 2.1%
  9. Friðrik Örn Haraldsson - 2%
  10. A.C.S. safnreikningur I - 1.7%

I should note that Teno Investments S.Á.R.L. is owned by General Catalyst Partners. GCP is the company that purchased the $20 million USD in convertible bonds CCP issued in 2012. CCP withdrew the bonds from the Icelandic Nasdaq in April 2015. At the time I believed that CCP had somehow paid off the bonds two years early. Instead, did GCP remove the bonds in an effort to shop them to a big investor? Until the next financial statement comes out (and someone obtains it from the Icelandic government office), I will err on the side of caution and say no.

While we don't know the amount of shares purchased by NEA and Novator in the latest deal, we do know how many were offered in 2012. According to CCP's 2012 financial statement, the $20 million in bonds were convertible at $32/share, or for a total of 625,000 shares. As I noted back in May, 625,000 shares would place an investor behind only Novator, Teno Investments (i.e. GCP) and Sigurd Harðarson in terms of the number of shares held. Is it too much of a stretch to believe that NEA is now the third largest shareholder of CCP? Indeed, the wording in the press release seems to indicate this is true.

Like I stated above, I don't really feel that good, so I'll just throw out one last question that some financial wizard can answer. How much money will CCP's virtual reality effort require? The bond buyback and refinance effort in April presumably kicked paying back that $20 million down the road past 2017. CCP also received an undisclosed sum of money in the sale of White Wolf to Paradox. Now CCP raised another $30 million with a stock sale.

I know that CCP is doing good work in the field of virtual reality, as I've experienced almost all of CCP's work in progress at either Fanfest or EVE Vegas. I'm not saying they have impressive work in the pipeline, but the demo of EVE: Gunjack I played at Fanfest was the least impressive bit of software I saw. I really hope the effort pays off. I guess I should feel better knowing that a company like NEA feels money is about to rain down on CCP headquarters in Reykjavik.

Sunday, October 25, 2015

Just Saved Some Money

I was a little uncertain about buying the Oculus Rift when the new virtual reality device hits the market early next year. So one of the reasons for coming out to EVE Vegas was to try out Valkyrie and whether I can even play the game.

I am horrible at two types of games, first person shooters and flight simulators. I knew that Valkyrie is a combat flight simulator, but I figured that since the scenario at EVE Vegas consisted of shooting NPCs that I couldn't do too badly, right? Wrong.

I played a version of Valkyrie two years ago at Fanfest, so I had some clue about the experience. The first surprise was that the version of the Oculus Rift I used yesterday felt much clunkier than what I remembered. I don't think I could put it on unassisted, which would really make me not want to buy one.

The next was the controls. An Xbox One controller? I knew I was in trouble, but the first time I played I could at least fly around. Given that the scenario was the one shown in the trailer at Fanfest, that was enough for me even if I didn't succeed in shooting anything.

Needless to say, I didn't succeed in coming close to shooting anything. I experimented with trying to lock a target for my missiles, but gave that up fairly quickly when I couldn't figure out how to do so. So from then on, I just concentrated on trying to steer my ship. I failed miserably at that as well. The controls were extremely sensitive and my view bounced around very rapidly. As for trying to control my speed, I gave that up as a lost cause because ... Xbox One controller. I had too many buttons to try to remember that the button even existed much less where the button was on the pad (which I couldn't see).

When my ship finally blew up, CCP Leeloo was present to ask me questions. She pointed out that I needed to move my head around to lock things.  I just wanted to leave, so I didn't tell her the only targeting reticle I saw was for the guns and I never saw anything for the missiles. Also, I didn't really care about the advice about moving my head around because I couldn't even get my ship pointed where I wanted to go.

Overall, a much more frustrating experience than the one I had at Fanfest 2014. But don't take this post as advice not to get an Oculus Rift. The gear is an amazing technology. What I will say is that the tech will not make you like flight simulators if you don't like them in the first place. So for me, I won't rush out and pick up a unit when they come out next year.

Monday, September 21, 2015

The Return Of Expansions

Perhaps the biggest news in EVE Online last week did not emerge from the CSM Summit. Instead, CCP Seagull announced via a dev blog and a YouTube video that expansions would return to EVE.


Instead of regurgitating the words from the dev blog, I'd like to look at two graphics. The first is the state of CCP's roadmap leading to player-built stargates at the end of 2014.

The state of the roadmap, December 2014

The second comes from Thursday's dev blog and shows the state of the roadmap today.

The state of the roadmap, September 2015
From those two pictures, I'd guess that the major fixes to legacy game systems are pretty much over. As we learned, the Citadel structures aren't just a modification to existing structures, they are a full replacement for the system worthy of an expansion. Perhaps I am too optimistic, but I think the corporation and alliance mechanics will receive a full rewrite that results in the old code winding up on the scrap heap as well.

No one should view the 5 week release cycle as a failure just because CCP is moving back to having expansions. EVE Online needed a huge amount of modernization in a very short period of time, and the faster pace accomplished more than I thought possible. As a reminder, here's a listing of dev blogs and patch notes over the past 14 months:

Crius (July 2014)


Hyperion (August 2014)


Oceanus (September 2014)


Phoebe (November 2014)


Rhea (December 2014)


Proteus (January 2015)


Tiamat (February 2015)


Scylla (March 2015)

  • No Dev Blogs

Mosaic (April 2015)


Carnyx (June 2015)


Aegis (July 7, 2015) And Aegis Sovereignty (July 14, 2015)


Galatea (August 2015)



Why do I think CCP needed to work as quickly as possible? Because a certain space fighter simulator is due out in 2016. No, not Star Citizen. That game probably won't emerge from beta until 2017. I'm referring to EVE: Valkyrie. I expect that once the Oculus Rift launches sometime in the first quarter of 2016, that Valkyrie will lead some people to want to experience more of New Eden and try the parent game. And as we saw after the Battle of Asakai and the Battle of B-R5RB, EVE could only keep a small fraction of the players intrigued enough about the game as paying customers. With Valkyrie potentially emerging as the killer app for both the Oculus Rift and Project Morpheus for the PS4 sometime in the first half of 2016, CCP needed to upgrade EVE quickly. CCP has really improved EVE since the end of 2013. Hopefully enough to entice the curious to subscribe. After all, a game only has one chance to make a good first impression.

Monday, May 18, 2015

Bond-A-Geddon: What We Know

"No need for tinfoil - nothing sinister or strange afoot at CCP!"
Adam Kahn, Sr. Director of Communications at CCP
Over the weekend, TMC published an article by Dirk MacGirk publicizing the fact that CCP removed all financial documentation from its corporate website, probably following the delisting of its bonds on the NASDAQ Iceland exchange on 29 April. The fact that CCP intended to buy back the outstanding bonds was not a secret to observers in the EVE community. The marketsforISK blog covered the story on 5 April, speculating that CCP is undergoing a recapitalization process because its balance sheet is under pressure and the company needs new capital in order to continue. The news today is CCP is no longer required to publicly post any financial information.

Monday, December 29, 2014

Predictions For 2015

The end of the year is upon us.  Time to once again fulfill the requirement to look back at the year past and fearlessly gaze into the future.  That's right, time to see just how badly I did on my predictions for 2014 and make a fool of myself looking ahead to 2015.

First, how did I do in 2014?

The Subscription Model Is Not Dead Yet - I predicted that both Wildstar and Elder Scrolls Online would remain subscription games until the end of 2014.  I was correct on both points.  I didn't make the prediction that ESO would make an announcement would go free-to-play in the first half of 2015, which proved that discretion is the better part of valor.  I'll come back to this in my predictions for 2015.

PLEX-Type Systems Mixed Reception - With as much as I write about RMT, my predictions were spot on, right?  Yeah, right.  All my predictions were wrong.  I predicted that Jagex would announce that bonds would not have the desired effect on RMT within Runescape in 2014.  Wrong!  And that's a good thing.

What about Wildstar's C.R.E.D.D.?  I predicted that Carbine would trumpet some success concerning their PLEX-like object.  That didn't happen, at least to my knowledge.  I also predicted that a MMO in development would would announce it was developing their own version of a subscription plus PLEX model in the last quarter of 2014.  I was close, but World of Warcraft doesn't count.

Finally, what about my prediction for EVE of a final PLEX price of 660 million ISK?  Ha!  On Saturday, the average price sold in Jita was 782 million ISK.  Unless the prices drops through the floor, I'll count that prediction as a fail.

World of Warcraft Does Well, But... - Okay, I got most of my WoW predictions wrong.  I predicted that WoW would get back up to the 9 to 10 million subscription mark based on 2.4 million copies of Warlords of Draenor sold in the first week of release.  Instead, players flocked back to Azeroth and the expansion sold 3.3 million copies the first day and the number of subscriptions exceeded 10 million for the first time in three years.

I did, however, get the major hacking attack in 2014 prediction correct.  I'm not even referring to the major DDoS attack that occurred at the launch of Warlords of Draenor.  A trojan was released at the beginning of January that allowed hackers to bypass the WoW authenticator.  But as far as I know, Blizzard did pretty well the rest of the year, aside from the DDoS attacks that plagued the entire MMORPG industry.

Guild Wars 2 Expansion - I got my prediction correct about ArenaNet not publishing an expansion in 2014.  However, I failed on the announcement for an expansion for 2015.

CCP - Unfortunately, reality was worse for the Icelandic game company than I predicted, and I did not predict a good year.  While CCP is a private company and no longer releases subscription numbers, I am going to consider my prediction of a subscription loss in EVE Online in 2014 as coming true.  I also predicted that CCP would not release a "Jesus feature" in 2014, and I do not consider Thera to qualify as such.

I predicted that DUST 514 would not close in 2014, and at Fanfest that appeared seriously in doubt.  I was correct again with the prediction that DUST would not break the 7,000 PCU mark, and the game never came close.  I also predicted that CCP would not announce that they planned to migrate the game to the PS4.  Correct again.  I also predicted layoffs in the Shanghai office.  Unfortunately, I got that prediction correct, although just about every CCP office outside Newcastle suffered layoffs in 2014.

Finally, my predictions about Valkyrie didn't come true, but not because of CCP.  The Oculus Rift was not released to the general public in 2014.  I still think that CCP will have Valkyrie ready for release when Oculus Rift is ready for release.

Star Citizen - I made three predictions about Star Citizen in 2014, all of which turned out wrong.  The first was that Star Citizen would reach the $65 million mark in funds raised from players.  That amount was surpassed, with the total as of Sunday at $68.3 million.  No major RMT scandal interrupted the cash flow, although stories about Star Citizen's grey market did emerge throughout the year.  I also predicted that CIG would announce a release date for the full game for the second half of 2015.  Instead, 2016 was announced.

Biggest Surprise - My final prediction concerned Landmark.  I really thought the game would emerge as the surprise hit of 2014.  Although the game, from what I saw from tweeted screenshots from the devs, is beautiful and players in the beta can produce amazing things, the game never took off with the general public.  Then again, I expected the game to launch in 2014.  Instead, the last patch of the year introduced PvE, turning the game from a strictly building game like Minecraft into a more MMORPG sandbox builder.  Perhaps in 2015 Landmark will get some well deserved recognition.

I counted 22 predictions in the above, and I only got ten correct.  Nostradamus I am not.  But that won't stop me from making some predictions for 2015.  Here goes.

World of Warcraft RMT - One of the biggest stories of 2015 is whether Blizzard carries through with plans to introduce a PLEX-type instrument to the game.  I predict that WoW will see PLEX introduced in either Q2 or Q3, and that the price of illicit WoW gold will decline by 25% by the end of the year.  As a way to measure the progress, I will track gold prices for the Horde on the Earthen Ring realm.  For those unfamiliar with gaming podcasts, that is the home of the Alea Iacta Est guild associated with The Instance podcast.  If AIE sounds familar, their EVE offshoot, AIEU, is a member of the Brave Collective.

Currently, the low price for 30 thousand gold pieces on Earthen Ring found on Player Auctions is $17.38, with the median price offered at $21.71.  I'm predicting that will decrease to $13.04 and $16.28 respectively.

Guild Wars 2 Expansion Plans - One would think that after three years, Guild Wars 2 deserves an expansion.  However, don't expect one in 2015.  However, I don't see how ArenaNet avoids announcing an expansion for the first half of 2016 sometime during the upcoming year.

Elder Scrolls Online Goes B2P - I am predicting that Zenimax will announce that ESO will go buy-to-play in 2015.  With the game launching on consoles sometime during 2015, I think that Zenimax will want to have the same pricing structure for both PC and console gamers.  I don't think that console gamers will accept the subscription model, so I think the PC game will change.  I'd suspect the change will occur during Q2.

Wildstar Remains A Subscription Game - Perhaps the craziest prediction in this post, but I don't see Wildstar going either free-to-play or buy-to-play in 2015.  That would require NCSoft to cough up money for the conversion to begin.  While the Aion conversion to F2P went well, NCSoft is the company that cancelled Tabula Rasa after 16 months.  Then again, I don't think Wildstar will close its doors due to the news that Giant Interactive plans to publish the game in China in late 2015 or early 2016.  I get the feeling that converting the game for the Chinese market will take precedence over doing a F2P conversion for the West.  The Western market will probably see the F2P conversion sometime in 2016, so an announcement to F2P is possible sometime in 2015.

CCP Stops The Bleeding - I won't predict that CCP will have a banner year, but after 2013-2014, next year will look rather good.  On the financial side, players will get their hands on CCP's 2014 financial report and discover that the company did better in the second half of the year than the first.  Then, our enterprising players will get their hands on the mid-year report and see that CCP made a profit for the first half of 2015.  I also predict that CCP will remain a privately-held company.  No IPO in 2015.

Next, EVE Online will basically finish 2015 with the same activity levels as 2014.  I predict that the average concurrent user mark for the week of the U.S. Thanksgiving holiday in 2015 (23-29 November) will slightly exceed the ACU for this Thanksgiving week.  That number, as recorded on EVE-Offline.net, was 25,734.  I expect the number to fall between 26,000 and 27,000.

EVE may also receive a "Jesus feature" in 2015, depending on the definition of the term.  No, not player-built stargates.  Look for a shake-up of the incursion system, with Sansha's Nation either partially or totally replaced by Sleepers.

On the planetary side of New Eden, DUST will not sunset in 2015.  However, expect CCP to announce that Project Legion will launch a beta version with active DUST players receiving invites either in Q4 2015 or Q1 2016.

The only prediction I'll make on Valkyrie is that if Oculus Rift is ready for mass sales in 2015 that CCP will have a game to ship along with the VR headset.  Expect a Metacritic score of 85, plus or minus 3.

One last prediction for CCP.  No layoffs.

2015 Will Have Better New Games Than 2014 - At the beginning of 2014, 2015 looked like a quiet year for MMORPG releases.  Then ESO, Wildstar, and ArcheAge launched.  Now those small little games may outshine this year's big money AAA games.  Let me give five games that I believe may break out in 2015.  For prediction purposes, these games will all at least hit open beta, if not launch, in 2015.  Also for prediction purposes, these are all games that will get good reviews.

Landmark - My pick for surprise game of 2014, I really think once this SOE F2P game hits open beta that word of mouth will make the game fairly popular.  The game is currently available on Steam Early Access.

Shroud of the Avatar - Okay, I'm more of a science fiction guy, but I'm interested in this Richard Garriott effort.  But will the game reflect the Ultima Online Richard Garriott or the Tabula Rasa Richard Garriott?  I'm predicting the UO version.  While I probably won't have time to play, the game is available on Steam Early Access.

The Repopulation - Another science fiction sandbox game?  The game is available on Steam Early Access and I seriously considered purchasing the game the minute I laid eyes on it.  The game is just finishing alpha and I hope it officially launches in 2015, which makes that a prediction made with my heart, not my head.  I think that the game will fill a bit of a niche and receive some nice reviews.

Skyforge - After Wildstar, I'm not so sure about theme park sci-fi MMORPGs.  But I am going to keep my eye on this game.  I'll make the prediction the game gets a better Metacritic score than Wildstar.  The game currently is not on Steam.

H1Z1 - I'm not sure the zombie survival game qualifies as an MMORPG, but I'll predict that when the game finally emerges that critics will compare it favorably to DayZ.  While I don't play first person shooters, this is a game I'll follow with interest.  Also, I hear SOE plans to make the game available on Steam Early Access in January.

That's my list of predictions for 2015.  I'm sure someone will point out how crazy I am.  Then again, seeing how I did in 2014, my predictions are pretty much wild guesses.

Monday, May 5, 2014

Fanfest 2014 - Scattered Final Thoughts

I'm writing this from a hotel in Boston and won't get home until sometime this afternoon.  But I thought I should write down some final impressions of Fanfest 2014.

First, the convention seemed anti-climatic.  I think that was due to two reasons.  The first is the flood of industry dev blogs released right before the convention began.  That drew a lot of interest and then we were just digesting news during the convention.  Usually, part of the energy is learning about new things.  I didn't feel like that was the case this year.

The second reason is the people.  I had a lot more interaction with people before the convention.  Fanfest actually resulted in me toning down the socializing in order to track down news at the HARPA.

I think Fanfest 2014 closes EVE's run of 10 years of steadily climbing subscriptions.  I say that because no one was celebrating the new, higher number of subs.  I'm doubly convinced with the lack of the release of the CSM election results.  Not only is no dev blog published (as of the time I write this) but I looked on the forums and I only saw a player-created thread with the results.  Even when the dev blog is posted, I doubt we will see any data that will allow players to assume the number of subscriptions has increased.

I've stated before that the industry changes were necessary before the vision of s-space beyond the gates we build is possible.  CCP Seagull in the EVE Keynote address spelled out that not only industry, but stations and structures (that includes POS), corporation and alliance structures and roles, and sovereignty and sov warfare all need a revamp before players can begin constructing their own stargates.

I also think that moving to a 6-week release cycle is potentially a good thing.  Not only does that follow what is a growing practice in the industry, but I doubt CCP could implement the needed changes in core systems to enable players to build star gates if they didn't abandon the bi-yearly expansion development cycles.  Of course, CCP needs to adapt to that development cycle like ArenaNet has done with their every 2-week content release schedule.

Speaking of building, I found out at the Vision panel that EVE of Destruction is not just a mixed-martial arts event.  CCP Scarpia, the new lead game designer for EVE, would like to make everything destructible as well constructable.  Since CCP Seagull was sitting right next to him, I'll wager he's not going off on his own.  But I wouldn't hold my breath waiting for that vision to occur soon.

On the server front, CCP Veritas and Team Gridlock look like they are making progress on improving server performance.  The rewrite of the Dogma code should do that.  With any luck, Team Gridlock will get the code in a state that they can release it onto Tranquility by the end of the year. 

I think the security teams, both InfoSec and Team Security, will get very interesting this year.  The new guy always wants to come in and make their mark.  That means CCP Bugartist, who played EVE for 3 years before getting the job, could start trying to tighten the screws on botters and those selling illicit ISK even more.  Changing the rules so that getting caught buying illicit ISK results in a seven-day ban for a first offense and a permanent ban for the third is a nice start.  I can't wait to watch the presentation on YouTube.  I think I missed a lot by actually watching it in person.

As for EVE: Valkyrie, I don't really care.  I don't like combat flight simulators and that's what Valkyrie is.  But a lot of people do, so I hope CCP is successful with bringing the game to market.  And before anyone asks, I did try the game.

Finally, about DUST 514.  I've watched SOE close down games like The Matrix and Star Wars: Galaxies and the following player gathering in Las Vegas turned into a wake for the game.  I don't know how I would feel to take a trip and get the impression that the game I came to celebrate was now either dead or about to die.  Especially if I spent hundreds, if not thousands, of dollars to attend the event.  Not cool.

I had planned to attend the DUST Keynote, but got tied up with the Security roundtable.  That keynote is another session I have to watch.

I know I missed a bunch of other things, but I'll try to get around to writing posts with that information later.  I really can't avoid doing so if I want to write about the industry changes.  But those aren't really specific to Fanfest and I just jotted down the highlights of my experience in Reykjavik this year.

Friday, May 2, 2014

Fanfest 2014 - Day 1

The preliminaries are over and now the real work begins.  That's right, yesterday was the first day of CCP's Fanfest and serious internet spaceship business began.  I didn't do too much social stuff outside of going to dinner with Kelduum and Athanor at the little restaurant that Neville said he didn't want to go to this year.  But as Neville was at the charity dinner, we went anyway.

I stuck to the schedule I set up Tuesday, which meant six sessions.  Here's a quick impression of each presentation.

Wednesday, March 19, 2014

CCP, Financial Reports, And the PS4

Over the past 48 hours or so some news has come out about the direction that CCP is traveling in its quest to diversify its income beyond EVE Online.  The first involved the release of CCP's financial report for 2013.  Not really such good news, because while revenues increased by $11.4 million (17.5%) and gross profit by $9.4 million (15.5%), the company lost $21.3 million in 2013 after posting a profit of $4.7 million in 2012.  CCP would have lost $30.4 million, but the company's accounts are good and apparently made $9 million from income tax.  In 2012 CCP only made $800,000 in tax subsidies.

So what happened?  To tell the truth, I don't know.  I see that research and development costs rose from $16.5 million in 2012 to $56.6 million in 2013.  In numbers that seem related, a non-current asset line item called "development cost" decreased by $20.6 million and retained earnings declined by $21.3 million.  Those numbers seem to match up so probably have something to do with each other.
 
Brighter financial minds than mine (which isn't a big bar to clear) indicate that CCP lost $21.4 million in assets due to something called "derecognition."  CSM Vice-Chairman Ripard Teg explained in a blog post on Monday:
"On page 22, you'll find CCP taking a 21.4 million USD "derecognition" hit. The note for that says the following:
During the year the company assessed its capitalized development assets and determined that a portion of those assets would likely not have future economic benefits. IAS 38 requires that such assets should be derecognized and removed from the balance sheet. The expense related to the derecognized assets are presented as part of research and development expense in the statement of comprehensive income.
"Translated into English: 'We've decided that some of the code that we capitalized development costs for is no longer likely to be a future income source.' As code goes from 'something that a programmer is working on' to 'something that's going to generate revenue for our business', you capitalize it, i.e. turn it into a capital asset that's going to generate revenue in future balance sheets. CCP is saying that the opposite is happening for some of their code.
"Therefore, that same 21.4 million USD then disappears as an equity asset on page 26. This essentially 'writes these costs off the books' and indicates that CCP no longer regards this code as a capitalized asset."
Now, Ripard continued on and not only stated that he knew exactly what was happening, but that the subject was NDA'd.  That didn't stop him from giving a heavy hint that the code in question belonged to DUST 514.   If he didn't break the NDA with that, he's about to fall over the line.  So in the interest of not losing New Eden's most prolific blogger, let's see if I can help pull him clear.

Looking further at the report, we see on page 17 that the derecognition hit did not involve Worlds of Darkness.  In section 5.1 of the financial report we see that the value of non-current assets in North America declined by less than $100,000.  Those in Iceland, on the other hand, declined by $21.2 million in 2013.  I'm assuming, of course, that no WoD code exists in Iceland while the DUST code in Shanghai counts toward the valuation in Reykjavik.

Now, before everyone starts freaking out, please remain calm.  Or stop celebrating, depending on whether you like or hate DUST.  Remember what Ripard wrote.  Yes, CCP has probably derecognized the value of the code as DUST has not come near the expected profit margin.  But just because CCP is writing the current DUST code off the books doesn't mean the game is doomed.  Has anyone considered that perhaps CCP plans to port the DUST 514 over to the PS4 after all?  One Icelandic-based game site thinks CCP will make the announcement at E3.  If so, expect the new code to go on the financial books sometime this year.

Of course, I'm not just making assumptions based on a source in the world's northernmost capital city.  My assumptions are also based on the news that came out of a Sony presentation at GDC last night.


Project Morpheus is Sony's virtual reality project that will connect with the PlayStation 4.  Sony came up with the name a week ago and the project is still in very early development.  In addition to EVE Valkyrie, Sony announced that Square Enix was creating a special build of Thief as well.

David Reid, for those new to CCP, is the company's Chief Marketing Officer as well as serving as the interim executive producer of EVE Online since last Fanfest.  He also revealed that the Shanghai studio will not convert from DUST 514 to EVE Valkyrie production.


So with PS4 development for EVE Valkyrie in the U.K., that leaves the PlayStation coders in China free to continue development of DUST.

Now, why would CCP wish to consider its continued investment in Shanghai?  For one thing, the Chinese government in January lifted the ban on the sale of foreign console platforms in the People's Republic first imposed in 2000.  Sony has wanted to crack into the Chinese market for a long time.  Having a free-to-play FPS like DUST would help work around the problem of pirated software that is rampant in the PRC.  In addition, Sony could boast of a locally developed product, which would gain favor with Chinese authorities.  And the Chinese authorities may wish to gain favor with Iceland.  The Chinese are interested in some of the natural resources in the Arctic and have come up with some pretty wacky ways to try to invest in the island nation.  An Icelandic company could actually grease the skids for Sony.

Finally, I have to wonder if the search for a new executive producer for EVE Online is about over.  David Reid also sent out this tweet last night.


If he doesn't have to do the "EVE Online thang," does that mean CCP has finally found a permanent replacement for John Lander?  I realize this post has probably asked more questions than it answered, but that's the nature of EVE.  Or at least, the little bit of it I cover.