Reykjavík Grapevine - 11.01.2013, Blaðsíða 14

14The Reykjavík Grapevine Issue 1 — 2013
Trailblazers Of The Tech Industry
Is CCP forging Iceland’s future business model?
When people talk about Iceland’s resources, it’s
typically regarding fish, geothermal power and the
landscapes that attract hundreds of thousands of
tourists every year. Sadly missing from this con-
versation is the one resource that has been con-
sistently going strong, even in times of crisis, and
is not likely to be ever depleted. That is, imagina-
tion. When it comes to the creative fields, Iceland-
ers have an undeniably high output of exports. A
particularly telling case is CCP Games, one of the
country’s most successful companies across the
board.
Founded in 1997 for the sole purpose of mak-
ing massive multiplayer online roleplaying games
(MMORPGs), CCP’s f lagship product is the
sprawling sci-fi game EVE Online, a game that
not only permits but also encourages theft, piracy,
extortion and “griefing”—the act of more expe-
rienced players attacking those new to the game
within limits.
WHY IT THRIVES
DESPITE THE CRASH
EVE Online’s libertarian and meticulously detailed
space pirate universe is a large part of what attracts
people to the game and why CCP continues to grow,
weathering the financial crisis of autumn 2008 with
barely a scratch.
“EVE Online has grown consistently every year
since it was released,” CEO of CCP Games Hilmar
Veigar Pétursson tells us. “It is quite resilient to the
ups and downs of the world’s economy, and enter-
tainment propositions have historically proven quite
counter cyclical.”
Senior writer at the company Gauti Friðriksson
says one key to the company’s success is the fact
that the internet is everywhere. “The vast majority
of CCP's profits come from outside the country,” he
says. “So the economic recession at home didn't quite
affect us the same way it did most local companies.
I think any business that emphasises international
profits, due to having a wider geographical spread of
income, is likely to be more resistant to localised cri-
ses.”
Adding to this point, software engineer Unnar
Steinn Sigtryggsson says, “Our income is in Euros,
dollars and now pound sterling as well so it probably
weathers the fluctuations of the ISK better than if
our revenue were in ISK.”
EMBARKING ON THE WARPATH
This is not to say that the company has been with-
out its troubles. In late 2011, the company decided
it had been stretching its resources a little too thin,
and decided to do some restructuring—a neutral-
sounding word that nonetheless usually means
people are going to be fired—resulting in 20% of
its global staff being let go.
“Last year we indeed reprioritised our efforts,
which resulted in people being moved around and
there was also an overall reduction in our work
force,” Hilmar says. “This was a difficult decision
to make, but also the right one for the company.
We now have around 500 people in our offices
around the world working on continued growth
for EVE Online, getting [newly developed console
game] ‘DUST 514’ to market this year and the [on-
line roleplaying game] ‘World Of Darkness’ proj-
ect to market in the future.”
Almost a year later, in August 2012, CCP gath-
ered its forces and went on the warpath. Tech
Crunch reported that the company raised some
20 million USD in new funding, mostly through
domestic sources and there were even some whis-
pers of an IPO.
But why the push for cash, especially ten
months after significantly downsizing the com-
pany? CCP President Hilmar Pétursson says it
comes down to DUST 514. “With the launch of our
second product on the horizon, we felt this was the
right time to increase our capital and strengthen
our balance sheet,” Hilmar says. “These funds
will be used to support a stronger marketing cam-
paign for DUST 514, add additional hardware and
capabilities to our backend server system, and for
general corporate purposes supporting our con-
tinued growth.”
As for the IPO talk, it seems it’s farther off than
implied. “We do not have any immediate plans to
go public,” Hilmar says. “But we are working to-
wards IPO readiness so if the time comes when it
makes sense for us then our internal operations
will be ready for it.”
WELCOMING COMPETITION IN
THE FIELD
One of the biggest problems with large compa-
nies in Iceland—for competitors and consumers
alike—is a distinct lack of competition. When
one company emerges as a giant in a particular
field, smaller companies can be either absorbed or
edged out, and consumers are left with few choic-
es. This, again, is something that CCP Games has
managed to avoid, due in part to their presence on
a global rather than solely local stage.
“We compete in a global market and don’t re-
ally regard other Icelandic companies as compe-
tition,” Hilmar says. “And in fact we try to help
others as best we can with advice and connections.
The only competition really is for great people,
and we believe that more high-tech companies in
Iceland means a bigger pool of skilled and experi-
enced people, and that is a good thing for every-
one.”
Marketing manager Eldar Ástþórsson agrees.
“I find the atmosphere within this sector here in
Iceland really friendly,” he says. “People and com-
panies support and help each other rather than
look at each other as competitors. And I do think if
we would have more successful companies here in
Iceland within the tech and video game industry,
it would not only benefit CCP, but the creative in-
dustry in Iceland as a whole.”
Gauti agrees, pointing out the different emerg-
ing tech fields that Icelanders are engaging in.
“Icelanders have a long-standing reputation for in-
novation,” he says. “And I think that holds as true
in the tech sector as it does elsewhere. I know of
several people engaged in tremendously exciting
projects in all spheres of the technology constella-
tion. Web development tools, data security, music
distribution models, digital forensics, brainwave
headsets—the list goes on. There is a lot of superb
talent out there, working hard to put genuinely
new things into the world.”
Adds Unnar: “We are considered a niche game
on the global market, so we have little competi-
tion there. Still, there is ample room for more tech
based, even computer game making, companies
here in Iceland.”
FEARS A DEARTH
OF LOCAL TALENT
When it comes to the future of Iceland’s tech in-
dustry, Unnar fears that a lack of talent might be
the roadblock. “In my time at CCP alone I’ve seen
many new companies start up and get favourable
mentions here and there. But I worry about the
sustainability of this growth as companies will
start to have to look abroad for new talent. They
might not be in the same ‘established in the in-
dustry’ position CCP is in and so ‘move to Iceland’
might become a harder sell.”
This is a fair point. CCP Games pays its em-
ployees in Euros. For Icelanders, this is an attrac-
tive selling point. For Europeans, the sole differ-
ence it makes is location. If Iceland’s pool of those
eager to work in the tech field shrinks or becomes
static, bringing in talent from abroad will become
more important, and the lure to live in Iceland
could take more effort.
Nonetheless, the general consensus at the com-
pany seems to be one of optimism where Iceland’s
tech industry is concerned. “The Icelandic tech
industry is growing for sure,” Hilmar says. “I see
signs of it happening all over. Ultimately, what will
allow it to thrive even more is educated people, ei-
ther Icelanders educating themselves or compa-
nies bringing skilled and experienced talent into
the country.”
Gauti as well is optimistic, which he attributes
in part to the national character. “The Icelandic
ambition for creative enterprise is sharp and resil-
ient.” - PAUL FONTAINE
DUST 514
A free FPS for PlayStation 3 wherein console gamers and PC gamers
are able to share the same universe for the first time in gaming his-
tory. EVE is a PC game—it can be played on any computer that has
the hardware to run it. DUST 514, however, is a console game, made
specifically for the PlayStation 3. While traditionally PC gamers and
console gamers occupy two separate worlds of gaming, CCP has al-
lowed these two different gamers to share the same space in the EVE
universe. This game is due to be released this year.
WORLD OF DARKNESS
An online supernatural horror-based roleplaying game. This game
dates back before the millennium, but in 2006, a merger took
place between CCP and World of Darkness’s publisher, White Wolf
Publishing. At that time, CCP announced plans to turn World of
Darkness into an MMORPG. Although the development staff was
reduced last October during the re-structuring, there are still devel-
opers actively working on the game, which doesn’t have a scheduled
release date as of yet.
UPCOMING PROJECTS FOR CCP:
Simon Steel
Photo caption photo caption photo caption
The Future | Tech Industry
So the economic
recession at home
didn't quite affect
us the same way
it did most local
companies.
“
„
More info at www.ccpgames.com