Digital Games
A Danish Perspective
“Når forandringens vinde blæser – er der dem der bygger læhegn
og dem der bygger vindmøller”
“When the wind of change is blowing – there are those who build windbreaks
and those who build windmills”
Charlotte Appelgren
Copenhagen 20 May 2003
MEDIA Desk Denmark/Vognmagergade 10/DK-1120 Copenhagen K./Tel. +45 33 74 34 42/media@centrum.dk
Contents
Foreword
Introduction/Assignment
1.
Market Situation………………………………………………………………………..…5
2.
Industry Structure………………………………………………………………………..8
3.
The Process of Creating a Game…………………………………………………….11
4.
Game Development Companies………………………………………………….….13
5.
Associations & Networks………………………………………………………………19
6.
Finance……………………………………………………………………………………..21
7.
Distributors in Denmark……………………………………………………………….28
8.
Education & Academia………………………………...……………………………….29
9.
Festivals & Conferences………………………………………..……………………..33
10.
Political level Denmark/Nordic/EU…………………………………………………35
11.
A Flourishing Industry?………………………………………………………………..37
12.
Online games……………………………………………………………………………..39
1.1
1.2
3.1
3.2
3.3
4.1
4.2
5.1
5.2
5.3
6.1
6.2
6.3
6.4
6.5
6.6
6.7
8.1
8.2
8.3
12.1
12.2
12.3
Annex 1.:
Annex 2:
Annex 3:
Annex 4:
Annex 5:
Global………………………………………………………………………………………………………………….…………..5
Denmark/Nordic……………………………………………………………………………………………………………….6
Process of Creating a Game……………………………………………………………………………………………..11
Production Flow /Timeline………………………………………………………………………………………………..11
Production Line / Team……………………………………………………………………………………………………12
Company Profiles……………………………………………………………………………………………….……………14
Companies selected for MEDIA support……………………………………………………………………………..18
Game Development Sector…………………………………………………………………………………………..….19
Other Associations Worldwide…………………………………………………………………………………………..20
Networks………………………………………………………………………………………………………………………..20
Traditional Funding Model……….……………………………………………………………………………………….21
Typical Costs…………………………….…………………………………………………………………………………….22
Subsidy Schemes in Denmark.…..….………………………………………………………………………………….23
Support Models in other Countries…….………………..……………………………………………….……………23
Seed/Venture Capital in Denmark………….………………………………………………………………………….24
Nordic & European Financial Initiatives….….………………………………………………………………………25
Completion Bonding…..……………………………….……………………………………………………………………26
Education……………………………………………………………………….………………………………………………29
Research & Academia………………………………………………………….…………………………………………..30
MEDIA Training……………………………………………………………………….………………………………………31
PC & consoles……………………………………….……………………………………………….……………………….39
Mobile gaming…………………………………………………………………………………………….………………….40
Interactive TV gaming…………………………………………………………………………………….……………….41
References and further readings
25 leading independent videogame developers in Europe 2000-2001
15 leading videogame publishers worldwide 2000-2001
15 leading European videogame publishing companies 2000-2001
About MEDIA
Digital Games – a Danish Perspective
MEDIA Desk Denmark
Page 2
Foreword
The need for this report has been uncovered during our project meetings at MEDIA Desk Denmark. The
Desk holds about 200 project meetings a year covering the areas of film, TV and multimedia. An
emerging part of those meeting concerns projects using new technology, especially games.
This trend mirrors the international trend – the game business in the world has surpassed the film
business many times. Unfortunately the possibilities of developing and marketing multimedia productions
in Denmark are very, very limited, mainly for three reasons: 1. Very little home market (2 million
households), 2. No clear industry structure, and 3. Very little risk money and support available.
The problem concerning the lack of money is so serious, that even finding the matching money in
Denmark, necessary for applying the MEDIA Plus Programme is a problem – we can hardly find the
money to get equivalent amount from the EU.
To underline the gravity of the problem, children in Denmark - as well as the other Nordic Countries spend around an hour a day playing computer games. A very modest number of these games have been
made in Denmark or Europe.
So MEDIA Desk Denmark have decided to make this investigation, to improve our ability to help our
users to find financing especially for game development and the first step is naturally to know some of
the elements of the area. Many other aspects of the area are as important - like story telling
development, the social dimensions of the use of computers, etc but these areas are not covered in the
report.
This report has been researched and prepared by Charlotte Appelgren, Advisor MEDIA Desk Denmark.
It is our hope that this report will be of value – not only to MEDIA Desk Denmark – but also to the game
development sector, public bodies and associations in Denmark, in addition to other MEDIA Desks
colleagues finding an interest in this field.
Søren Stevns
Director MEDIA Desk Denmark
The views expressed in this report do not necessarily
reflect the opinions of the European Commission.
Digital Games – a Danish Perspective
MEDIA Desk Denmark
Page 3
Introduction / Assignment
Digital games are as entrenched in today’s youth culture as film and tv, and as games evolve to
become a mass-media phenomena, they will by definition become a culturally important influential
factor. However, the question is who is going to rule the homes in future? European content or
American/Asian content?
The background of this report is the fact that in 2001 and 2002 only three Danish companies applied for
MEDIA Multimedia Development support offered by the European Commission. 1 Also, the MEDIA
Programme offers a number of training opportunities in the field of new media, however, again too few
professionals from Denmark are availing themselves of these opportunities. This scenario stands in
contrast to the Danish Film & TV industry, which over the years has benefited tremendously from the
MEDIA programme both in financial terms and knowledge wise.
Hence, in order to be able to provide a better service to the Danish creative digital entertainment sector
and to increase this sectors knowledge of the MEDIA Programme, it was decided to carry out a
preliminary study. Information was to be obtained from publicly available sources, including websites
and presentations given by industry experts.
It was further decided to focus on the area of digital games, as they are the most economically
successful and popular area of digital interactive media. The objectives of the study were twofold:
I.
To expand the knowledge base and information resources available of MEDIA Desk Denmark in
the field of digital games from a Danish perspective, including:






How is the market situation
What is the industry structure
How are those products financed
Identify potential companies who match the criteria of MEDIA Development support
What are the training opportunities for the industry, and last but not least;
What is needed in order to optimise the Danish situation in respect of MEDIA
And
II.
To act as a source of inspiration to Danish professionals involved in financing, developing and
managing creative digital entertainment.
It is important to note that this study has been carried out from a Danish perspective and from a
practical and informational point of view to be of immediate value to the day to day work of MEDIA Desk
Denmark. This includes providing the Desk with the skills to master the financial aspects of digital
culture product, to offer updated information/overview on this sector both at a national and international
level and last but not least assisting the professional applying for MEDIA Development support.
MEDIA Desk Denmark
Vognmagergade 10
DK-1120 Copenhagen K
Tel.: +45 33 74 34 42
media@centrum.dk
1
All three projects were selected.
Digital Games – a Danish Perspective
MEDIA Desk Denmark
Page 4
1. Market Situation
1.1 Global
The global games software industry is growing fast and is estimated to have worldwide revenues of $ 18.5
billion in 2003 up from $16.9 billion in 2002. 2 Informa Media forecasts annual games sales reaching $43
billion globally by 2006.
Driving the market growth is the console sector, whilst the value of PC games will remain constant. Online
and mobile gaming are expected to become important growth contributors in future – offering new
opportunities for developers and publishers.
Table 1.1: Global Market Place
$ billion
Console software
PC software
On-line
Mobile
TOTAL
2001
9.642
7.124
568
762
18.096
2006
18.339
8.328
5.648
11.008
43.323
Source: Informa Media Group
Today digital games are the most favoured entertainment media in the USA and has a higher growth rate
than any other part of the entertainment industry. Despite the absence of equivalent figures, it is reasonable
to assume that the European market have a possibility of similar dynamic.
The US market for leisure software was worth approximately $7.5 billion and Japan $2.4 billion in 2002, in
comparison with Europe’s $5.6 billion in 2002 according to Screen Digest. In 2001 the total Western
European leisure software market in value terms was worth EUR 5.25 billion up from EUR 5.1 billion in
2000.3 The term “interactive leisure software” refers to both games playable on dedicated hardware
(consoles) & PCs, in addition to “edutainment” (e.g. children’s fun learning titles), but not “reference” (e.g.
encyclopaedias on CD and DVD-ROM. Online and mobile gaming is not included either.
After the US and Japan, the UK is the largest retail games market in the world. In Europe in 2001, in value
terms, the UK was the biggest market for leisure software, followed by Germany, France, the Nordic region,
Italy and Spain/Portugal.4
The years 2001 and 2002 marked the transition period from one console cycle to another (34-bit to 128-bit).
Today’s console market is dominated by three key players – among which there is intense competition:
Sony’s PlayStation 2, GameCube by Nintendo and Xbox from Microsoft. On a global level, Screen Digest
estimates that by the end of 2002, Sony had sold more than 40m PlayStation 2 machines. In Western
Europe Sony had sold more than 11.5m, compared with Xbox 1.4 million and GameCube 1.3 m. 5 As regards
handheld gaming – Nintendo almost has had the market to itself. Firstly, with the Game Boy and then with
the 2001 introduction of Game Boy Advance.
Press release by Screen Digest. 10 March 2003.
Yearbook 2002, Volume 4, Multimedia and New Technologies. European Audiovisual Observatory. 2002.
4
Yearbook 2002, Volume 4, Multimedia and New Technologies. European Audiovisual Observatory. 2002.
5
Source: Interactive Leisure Software: Global market assessment and forecasts to 2006. Ben Keen. Screendigest. March 2003.
2
3
Digital Games – a Danish Perspective
MEDIA Desk Denmark
Page 5
1.2 Denmark/Nordic
In respect of the Nordic countries, Screen Digest estimates that by the end of 2002, Sony had sold
approximately 730.000 PlayStation 2s in the Nordic countries, compared with Xbox 120.00 and 40.000 units
of GameCube. As can be seen from table 1.2 Sony Playstation 2 is – also in the years to come – estimated to
be the main console dominating the Nordic region with approximately 1.910.000 installed by 2006.
Currently, approximately 1.7 million households in the Nordic region has Game Boy, however, with the
launch of Game Boy Advance in 2001 growth for this device will be estimated to reach 1.470.000 units in
2006. In the Nordic region 7.5 million households have a PC – increasing to 8.49 million in 2006.
Table 1.2: Hardware installed base in households and forecasts in Nordic countries (Denmark,
Finland, Norway, Sweden)
In million
2000
2001
2002
2003
2004
2005
2006
Sony Playstation /Psone
1.26
1.42
1.44
1.45
1.45
1.45
1.45
Nintendo N64
0.38
0.38
0.38
0.38
0.38
0.38
0.38
Sega Dreamcast
0.09
0.11
0.11
0.11
0.11
0.11
0.11
SonyPlaystation 2
0.03
0.29
0.73
1.25
1.58
1.82
1.91
Nintendo GameCube
0.04
0.08
0.11
0.14
0.14
Microsoft Xbox
0.12
0.28
0.39
0.46
0.50
Total 256-bit consoles
0.28
0.92
Game Boy
1.50
1.68
1.70
1.70
1.70
1.70
1.70
Game Boy Advance
0.21
0.41
0.68
0.99
1.24
1.47
PC
6.79
7.22
7.53
7.80
8.05
8.29
8.49
Source: Interactive Leisure Software: Global market assessment and forecasts to 2006. Ben Keen. Screendigest. March 2003.
In overall value terms, Screen Digest estimates that the total Nordic leisure software market is worth
approximately 476 million euro in 2002, growing to 545 million euro in 2006. PC software sales will decline in
the years to come. At the moment the PC games market holds approximately 38% of the total leisure
software market in value terms – declining to approximately 30% by 2006.
Table 1.3: Annual sales value and forecasts of “software”
Finland, Norway, Sweden)
In euro million
2000
2001
2002
Sony PlayStation /Psone 126.3
86.3
34.4
Nintendo N64
21.8
9.
0.8
Sega Dreamcast
16.8
11.1
2.1
Sony PlayStation 2
6.7
52.5
152.2
Nintendo GameCube
9.2
Microsoft Xbox
26.4
Totol console
171.5
159.0
225.1
Game Boy
21.1
19.6
8.5
Game Boy Advance
17.0
33.9
Total handheld
21.1
36.6
42.2
PC games
208.1
202.7
180.0
PC edu. / reference
50.0
37.5
28.8
Total PC
258.1
240.3
208.8
Total games
400.7
398.4
447.6
Total leisure software
450.7
435.9
476.4
in Nordic Countries (Denmark,
2003
9.8
0.0
0.7
186.4
15.7
56.7
269.4
3.6
48.5
52.1
178.2
24.5
202.7
499.6
524.2
2004
2.4
2005
0.0
2006
-
0.0
192.6
16.9
57.3
269.1
0.8
47.3
48.1
176.0
21.0
197.1
493.3
514.3
140.9
14.1
41.5
252.6
0.0
42.5
42.5
173.2
18.6
191.8
468.3
486.9
97.1
8.3
28.1
325.9
36.3
36.3
166.5
16.5
183.0
528.7
545.2
Source: Interactive Leisure Software: Global market assessment and forecasts to 2006. Ben Keen. Screendigest. March 2003.
Digital Games – a Danish Perspective
MEDIA Desk Denmark
Page 6
If we look at children’s use of some media types in Denmark, table 1.4 shows that computer games takes
up on average 50 minutes per day among the 5-7 years-olds and increase to almost 90 minutes among the
11-12 years old. As regards computer games there is a significant gender difference in terms of the time
spent. According to a recent survey in Denmark boys play computer games on average 109 minutes a day,
and girls 43 minutes. In comparison the average minutes a day used on other media such as tv, video and
internet reflects no significant gender difference in terms of time spent. 6
Table 1.4: Media use in Denmark in average minutes a day
Average minutes a age 5-7
age 8-10 age 11-12 age 13day
15
TV
73
90
124
139
Video
60
59
93
87
Internet
16
17
25
33
Computer games
53
75
90
73
age 1618
131
65
32
63
Sources : Children – Consumption, Advertising and Media. Flemming Hansen, Jeanette Rasmussen, Anne Martensen and Birgitte Tufte.
Copenhagen Business School Press. 2002. Børns opvækst som forbrugere. Flemming Hansen. Samfundslitteratur. 2002
The purpose of table 1.5 and table 1.6 is to give an insight into the extension of the possibilities for digital
games in Denmark. The information given leaves no doubt – games today reach a very broad audience and
are no longer limited to a small segment of nerdy teenage boys. Just as film and tv, digital games are an
important factor in today’s children and youth culture.
Table 1.5: Electronics in a child’s own room in Denmark
Coverage own
age 5-7
age 8-10 age 11-12 age 13-15
room (%)
TV
37,6
50,5
64
72,4
PC
7,5
17,0
20,0
27,9
PC-games
7,4
16,4
17,0
23,7
Playstation
13,5
24,7
25,4
18,8
Gameboy
18,9
38,0
42,9
28,5
Nintendo
2,4
5,9
8,9
5,6
Dreamcast
0,0
0,0
0,0
2,1
Other console
1,5
4,8
6,2
4,4
Mobile phone
1,2
3,6
23,4
36,7
age 16-18
76,1
34,1
24,4
10,1
13,1
1,7
1,1
2,0
29,7
Source: Børns opvækst som forbrugere. Flemming Hansen. Samfundslitteratur. 2002
Table 1.6: Electronics in households in Denmark in percentage
(%)
All households
Households with In their own
children age 5-18 room age 5-18
TV
94,7
93,4
59,8
PC
62,6
82,5
21,4
PC-game
70,6
17,8
Mobile
63,7
42,4
20,0
Gameboy
39,5
27,3
Playstation
35,2
18,0
Nintendo
9,2
4,6
Other console
7,9
3,6
Age 19-30 (young
adults)
95,4
81,0
49,9
79,8
6,0
18,9
3,0
1,4
Source: Børns opvækst som forbrugere. Flemming Hansen. Samfundslitteratur. 2002
6
Source: Børns opvækst som forbrugere. Flemming Hansen. Samfundslitteratur.
Digital Games – a Danish Perspective
MEDIA Desk Denmark
Page 7
2. Industry Structure / Description of the Players
Consumer
Retailer
Distributor
Publisher
Platform
Manufacturer
Game
Developer
Funds
Seed/Venture
Bank
Platform Manufacturer. The platform manufacturer provide the hardware platform on which games can
be played. Focus here is on video console manufacturers – which is dominated by three players: Microsoft
(Xbox), Sony (Playstation 2) and Ninentendo (GameCube and Game Boy Advance). The price of one console
with the minimum amount of material required (one game, one joystick and one memory card) is in the
region of EUR 250.
The success of one console is estimated to begin at 20 million units sold, which is a turnover in excess of $ 4
billion7. This of course means it is a market characterised by very high entrance barriers. The position of the
console manufacturer allows exclusive access to the users. In order to get the rights to publish a title on a
specific console, the publisher must get approval from the manufacturer, so console manufacturers certainly
have a large influence on which types of games are produced and distributed. The publisher must also get
all discs manufactured at the platform manufacturers press and pay an upfront, non-refundable royalty of
approximately EUR 7-10 per unit. This amount will typically be deducted from the Gross Income when
calculating the Net Income which forms the basis of royalty calculation for developers (see section 6).
Console manufacturers’ business model typically consist of the following income flows: (1) revenue from
hardware sales (often the consoles are sold at a loss to obtain volume and market share) (2) sale of own
software and (3) non-refundable royalty fee for each copy of the game which is manufactured for sale and
use on their console.
LE DIBERDER et F. LE DIBERDER, La création de jeux vidéo en France en 2001, Développement cutlurel, Bulletin du Département des
études et de la prspective, Ministére de la culture et de la Communication, Paris, n 139, juillet 2002.
7
Digital Games – a Danish Perspective
MEDIA Desk Denmark
Page 8
Game Developer. The game developers’ main activities consist of creating the game concept, prototype
and the production of the game, including design and programming. In short, the employees are made up
of game designers, producers, graphic designers/artists, level designers, computer programmers and
musicians.
A large number of game development studios exist in US and Japan and in Europe, the UK and France
especially have a large number of game development studios and to a lesser extent the Nordic countries.
(See section 4 for a list of game developers in Denmark, and annex 2 for a list of the 15 leading independent
videogame developers in Europe). The studios can have everything from 5-200 employees.
The development sector can be divided into independent studios and the in-house studios of publishers.
In respect of the independent studios/developers the traditional funding model is that they create a
convincing concept/demo/prototype - and based on this work and the company’s track record – the
company approach a publisher and hopes to get a contract, including an advance payment. (See section 6
for more details on funding).
Some titles are designed by the developer/publisher themselves these are known as original content and
other titles are on licence basis (StarWars, Harry Potter, Lord of the Rings). Sometimes a cross-platform
strategy is chosen (i.e. PlayStation 2, Xbox, Nintendo and PC at the same time) – at other times titles may
be exclusively playing for one type of console – i.e. Xbox. However, if that is the case a developer/publisher
is of course excluding themselves from a huge number of potential consumers.
Publisher. A publisher’s business is to identify suitable titles, provide production funds and market these
titles successfully towards distributors, retailers and the end-user. The international game publishing houses
all have either their own world-wide distribution set-up or have partners to execute distribution.
Over the last couple of years publishing in general has undergone a period of consolidation to deal with an
increasingly global market.
The big publishers, about a dozen in the world, are dominated by US, Japanese, French and UK giants –
which employ hundred and thousands of people worldwide. Electronic Arts (US) - founded in 1982 - is the
biggest independent (i.e. not a platform manufacturer) game publisher in the world. Next comes US
publisher Take Two. French Infogrames – which on May 7, 2003 announced its name change to Atari,
including all major subsidiaries - is amongst the five largest publishers of interactive entertainment. Also,
French Ubi Soft is among the largest game publishers in the world. Apart from its own products, Ubi Soft
develops and distributes many games under licence from other companies such as Dreamworks, Warner
Bros. Inc., Disney Interactive, Lucas Learning Ltd. and Playmobil. 8 Other key players in Europe include
EIDOS (UK), Titus (FR), Vivendi Universal (FR/IE/US) and Mindscape (UK/FR). (See annex 3 & 4 for a list of
the 15 leading videogame publishers worldwide and in Europe).
Distributor. The distributor is the connecting link between the retail trade and the publisher. The bigger
publishers have in-house distribution of titles to retail trade all over the world – e.g. American Electronic Arts
and French Ubi Soft and Infogrames. Others choose to issue licences for the distribution. Sony mostly carries
out distribution themselves, however, Sony has issued a licence to Danish Nordisk Film Interactive (Egmont
Group) in a number of countries to carry out distribution. (See section 7 for a list of distributors in
Denmark).
Hence, the distribution net is more or less set in respect of console games and the control over distribution
is more or less centralised by global publishing companies. This is also highlighted by the fact that marketing
and promotion expenses for games are reaching higher and higher levels. This industry is completely
8
Peter Kofler, KMPG and Christian Fonnesbech, The Interactive culture industry. For the Danish Ministry of Culture. 4 July 2002.
Digital Games – a Danish Perspective
MEDIA Desk Denmark
Page 9
international and generally speaking new games are released in almost identical form and at the same time
throughout the world. However, of course artwork of cover, translation, etc need to be adjusted to suit the
country of release in question.
Retailer. The retailers buy games from distributors and resell to consumers. As with most products it is
essential to obtain the best possible display in a shop – and hence the retailer is a favourable position when
negotiating. However, with the development of online “offline game” buying – the consumer no longer has
to physically purchase the product at the retailer. The losing parties in this scenario will be the retailer and
the distributor. Also, there is a tendency that the retail trade is “buying” directly from the publishers – i.e.
Toys R Us.
Examples of retailers include: toy stores, computer, tv and music stores (or a combination thereof),
booksellers, video rental shops, supermarkets, specialised shop, etc. As regards the European retail sector –
despite increasing globalisation - each country is still dominated by its local chains – so the retail structure in
each country is still unique.
Consumer. The one who buys or/and uses the product at the end of the day. Games today reach a very
broad audience and are no longer limited to a small segment of nerdy teenage boys. Young people that first
adopted the games in the 1980s are now maintaining their interest as grown-ups. If this trend continues,
the market will grow for every new generation adopting the technology.
There are many game-genres and often a game contains more than one genre and it can therefore be
difficult to determine a specific genre, however, genres can include: Children’s Entertainment, Family,
Sports, Action, Adventure, Strategy, Racing, Fighting, 1st person shooters, Other shooters, Simulation,
Driving, Role Playing, Arcade and Edutainment.
Recent statistics from the US show the following purchase pattern in respect of games 9:
Console game players most of often purchased: action (25.1%), sports (19.5%), racing titles (16.6%),
followed by edutainment (7.6%), role-playing games (7.4%), fighting games (6.4%), first person shooters
(5.5%), and adventure games (5.1%).
Computer gamers, however, most often purchased: strategy games (27.4%), children’s games (15.9%) and
shooter games (11.5%), followed by family entertainment titles (9.6%), role-playing games (8%), sport
titles (6.3%), racing (4.4%), simulation (4.1%), and fighting games (0.1%)
Did you know? In the US:
 The average age of a game player is 28 years!
 43 percent of game players are women – average age 29 years!
 Computer and video gamers take their time from television!
 60 percent of all Americans aged six and older, or about 145 million people, play computer and
video games
 The vast majority of people who play do so with friends and family. (Almost 60% of frequent game
players play with friends, 33% play with siblings and about one-quarter play with their spouse
and/or parents)
 The top three reasons for playing games are because: it’s fun 87,3%, they’re challenging (71,4%)
and players like to play with friends and family (42.3%)
 The average number of family members who play PC games regularly is 1.6, while for console
games about 2 people per household play regularly (regularly = 5 or more hours per week)
Source: IDSA: www.idsa.com/pressroom_main.html & www.idsa.com/demographicinformation (Top Ten Industry Facts).
9
Interactive Digital Software Association (IDSA). Press release. www.idsa.com/1_27_2003.html
Digital Games – a Danish Perspective
MEDIA Desk Denmark
Page 10
3. The Process of Creating a Game
3.1 The process of creating a game
The process of creating a game and the time frame involved can of course vary from project to project. An
example on the process of creating a console game is illustrated below. The first phase is the idea stage,
next the development of a prototype/1st demo. With a demo at hand it is time to present the project to a
publisher. Once the publisher is on board and has approved the prototype the production can get started.
It is important to note that the testing of a game is an ongoing activity during the entire process of
creating the game – from demo stage all the way through production. At the end of production the final
testing of the game takes place. Even after release corrections/testing of the game still takes place. Hence,
substantial resources are allocated to the area of “testing” a game.
An example
Idea Stage
Establishing graphical style
- Gameplay sketch
- Basic storyline
Prototyping/creating 1st demo
Finishing design document
Contacting a publisher
Preproduction
Maturing technology
Experimentation with gameplay and User Interface
Production
Content creation (graphics, sound, scripts)
Crunch/debugging period
Putting everything together
Fixing final errors
Quality assurance
Release / distribution /support
Follow-up
Patches
Press
Total = 33 months
Source: Janos Flösser, CEO, IO Interactive. Presentation, Louiz,
Copenhagen, 26 November 2002.
Most of the work in respect of a creating a game is carried out in-house, however, often a number of
functions can be done as external work, which may for instance include: dialog/script, music, motion
capture (when they record movement), voice acting and quality assurance (often done partly in-house).
3.2 Timeline / Production flow in months
Simultaneously with creating the game, contract negotiations, marketing and sales are going on with/by
the publisher, as demonstrated in the following timeline:
3
6
16
2
Idea
Prototype
Production
Submission
Contract
Digital Games – a Danish Perspective
MEDIA Desk Denmark
Marketing
6
Support
Sales
Page 11
3.3 Production Line/Team
Looking at the production line/team for a game gives an excellent overview of the key functions and
competencies used in creating a game. Creating and developing games involve a large number of highly
specialised people, having very different abilities, including “technological” and “creative” experts. On the
“technological” side you have programmers, software engineers and mathematicians with considerable
experience in game programming and 3D graphics and on the “creative” side, functions include game-play
designers, level designers, graphic designers, writers, art directors, sound & music, etc. Another key role is
“management”. If you are not too familiar with this industry it can be worthwhile looking at the credit list
of a number of games, in order to get an insight into functions and skills involved in creating a game.
It is important to note that both production methods and the structure of the development/production
team vary greatly from company to company. In contrast to other creative industries there do not exist
any established structure as of yet. The example listed below is from one of Danish IO Interactive’s
projects.10
10
Source: Janos Flösser, CEO, IO Interactive. Presentation at Louiz, Copenhagen, 26 November 2002.
Digital Games – a Danish Perspective
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4. Game Development Companies
4.1 Company profiles
The purpose of this section is to identify and list independent game-developers/companies in Demark
which are potential clients in terms of applying for MEDIA Multimedia Development support and attending
MEDIA supported training activities. The company profiles is based on information obtained from publicly
available sources, including company website. Please contact MEDIA Desk Denmark if further companies
should be added to this list.
The Danish development sector is characterised by four big players and a large number of small teams of
collaborators creating and developing games. The companies listed below have “games” in some form on
the agenda either as main business or as secondary business. Most of the companies are also involved in
developing “advergames /commercials ” and other services to the advertising industry to secure a revenue.
The four biggest game developers in Denmark, IO Interactive, Interactive Television Entertainment,
InterActive Vision Games and Deadline Games employ in all approximately 250 people and had a turnover
in 2002 of DKK 175 million (23,5 million euro) 11. However, as demonstrated by the long list of companies
below many more than 250 people are involved in the development sector in Denmark.
IO Interactive A/S
Farvergade 2, 3 sal, DK-1463 Copenhagen K
Tel.: +45 33 73 29 00 * www.ioi.dk
Contact: Janos Flosser (Director), Morten Breum (Finance Director)
IO was established in September 1998 as a joint venture between Nordisk Film & TV A/S (Egmont Group) and game developer RetoMoto. The purpose of the company is to design and develop world class interactive entertainment for the global market based on own
original characters, universes and concepts by the use of proprietary technology. IO has grown gradually from the initial 7 full-time
employees to the current 100 – and is today the biggest studio in Denmark. Titles include: “Hitman: Codename 47” – a character
based third-person 3D action adventure game, published by Eidos Interactive in November 2000. In Oct. 2002 “Hitman 2: Silent
Assassin” was released and by April 2003 2 million copies have been sold. Hitman 3 is expected to be released in spring 2004. IO’s
“Freedom Fighter” will be released in 2003 by Electronic Arts.
Interactive Television Entertainment ApS
Nattergalevej 6, DK-2400 Copenhagen NV
Tel.: +45 70 210 200 * www.ite.dk
Contact: Søren H. Sørensen, CEO
ITE was founded in 1988. ITE is among the largest multi-platform games developer and publisher in Denmark with expertise and
knowledge of games and educational concepts across a multitude of formats. In 1990 ITE launched the interactive televsion show
“Hugo the TV Troll” in Denmark and subsequently created an explosive international marked based on this character. Target groups
are pre-school and children. The global "Hugo" franchise includes the first ranked interactive television shows, top-selling CD-ROM's,
platform and console games, music cassettes, toys and merchandising. More than 4 million "Hugo" CD-ROM, Sony PlayStation and
Nintendo Game Boy games have been sold globally. “Hugo” has been distributed in more than 30 countries. ITE employs
approximately 60 people.
InterActive Vision Games
Nørreskov Bakke 14 * DK-8600 Silkeborg
Tel.: +45 96 80 2700 * www.iavgames.com
Contact: Jacob Buck, Development Manager
InterActive Vision Games is a member of the AIV Group companies, which has offices in Denmark, Poland, USA, Slovak Republic,
Lithuania and Hungary. Chairman and CEO Mr. Sven Christensen founded InterActive Vision in 1989 as a technology-driven
development company and has since been very active in developing game products and B2B applications. Over the years Vision
Games has produced a range of PC, console, palm & pocketPC and online games – based on own concepts as well as projects that
are “commisioned” by publishers. Titles to mention a few, include: Operation Air Assualt, Brainstorm and Minigolf. The AIV Group is
the umbrella for all the companies including development studios, internet related activities and sales & marketing.
VISIONIK Interactive TV
Vesterbrogade 149, Building 9, 1st floor * DK-1620 Copenhagen V
Tel.:+45 36 93 60 00 * www.visionik.com
Contact: Torben Thune
11
Ny actionhelt i Hitmans fodspor. Peter Nyholm. Børsen. 25 March 2003
Digital Games – a Danish Perspective
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VISIONIK Interactive TV is a leading expert in developing digital interactive broadcast services working across satellite, terrestrial and
cable platforms. The company’s interactive TV portfolio includes among others enhanced TV, interactive advertising, EPGs, portals,
games and messaging services. VISIONIK has developed iTV games for DIRECTV Latin America, Sky Active, Austar, TDC Kabel TV,
Mediakabel, Casema, Télévision Par Satellite, Viasat, Showtime Arabia. The games range from amusements for kids to highly
innovative and entertaining games adapted for adults. Recently, VISIONIK was chosen by Sky to develop Cartoon Network branded
games. The Cartoon Network games portal is part of Sky’s Gamestar games channel and is available to Sky’s 5.7 million homes in the
UK and Ireland. Visionik has 45 employees. 5-10% of their turnover comes from outside Scandinavia.
Deadline Games ApS
Sankt Peders Stræde 45, 1. sal * DK-1453 Copenhagen K
Tel.: +45 33 13 12 75 * www.deadlines.com
Contact: Chris Mottes, CEO
Deadline started out as a television production company, however by 1997 the television division was sold and Deadlines focus was
100% on games and interactive entertainment. In 1997, Deadline joined forces with TATI, a Swedish company to form a developerowned publishing company Vision Park Entertainment AB. In March 2001, Chris Mottes and Simon Andreasen decided to carry out a
management takeover of their own studio, Deadline Games. Deadline is owned by Chris Mottes, Simon Jon Andreasen, Synerco APS
and employees. Today Deadline has two major business areas: Game Department – dedicated to games development on all platforms
for the world market creating highly original titles. Corporate Department – develops hi-tech, tailor-made business-to business
solutions for interactive market learning, testing and visualisation productions for a range of customers. Deadline has produced 8 PC
games and 3 corporate PC Productions. Deadline has recently done a deal with US publisher Take Two about a new action game to
be released on three platforms (PC, PS2 & Xbox) end 2004. Employees: 31.
Savannah Interactive Entertainment A/S / Dansk Bredbånd A/S
Toldbogade 39, DK-1253 Copenhagen K
Tel.: 33 38 58 20 * www.savannah.dk * www.dbnet.dk
Contact: Anne Sofie Josephsen
Savannah was founded by Per Rosendal in 1995 with the goal to develop original and imaginative entertainment for children in the
digital age – that respects and speaks to the children’s own culture. In the up-start phase Savannah was granted DKK 1 million from
”Kulturfonden” administered by the Danish Ministry of Culture. Savannah’s first title “The Mad Magician and the Mystery of the
Missing Boy” was released in 1997. It was selected the best game for children 1998 by the Danish press. Since then Savannah has
produced more than 20 computer games with among others “Bellini”, “Bille & Trille”, “Rasmus Klump” og “Jungledyret Hugo”. The
games have sold in more than 20 different countries. In March 2003 Savannah was taken over by Dansk Bredbånd A/S and focus
has switch from development of games to exploitation of Savannah’s back-end catalogue.
Studio 1-2 A/S
Teglvænget 29 * DK-7400 Herning
Tel.: +45 97 12 86 66 * www.studio1-2.dk
Contact: Bo Jensen, Director
Studio 1-2 was established in 1972 and started out as a television production company. Today Studio 1-2 both is involved in TV
production, commercials and multimedia. In 1996 the Multimedia Group was founded specialising in children PC games with a focus
on play-&-learn. Studio 1-2 has developed and produced a range of high quality original titles, including 9 ”Pixeline” PC games for
children age 3-8 (translated to Swedish, English, German, Norwegian and Finnish), 2 PC games based on the adventure hero
character “BattaBatta”, and 2 Pixeline Babybrother PC games for the age group 2-5 years. Studio 1-2 employs approximately 40
people.
Bitmonks ApS
Klareboderne 2, 2., DK-1115 Copenhagen K
Tel.: +45 28121386 * www.bitmonks.dk
Contact: Peter Rosenlund, Managing Director
Bitmonks ApS is a Copenhagen-based game developer founded in 2002. Bitmonks aims at producing console game titles for the world
market. The team consists of game designers with years of international industry experience – including former employment at ITE.
Their first project is called Shadow of Pandora – an action role-playing game. Danish Teknologisk Innovation (TI) – a Danish semipublic fund, and Nordeas Opfinderfond have both invested in Bitmonks.
Titoonic A/S
Skyttegade 7, 3., DK-2200 Copenhagen N
Tel.: +45 35 35 93 30 * www.titoonic.dk
Contact: Henrik Mou, Managing Director
Titoonic was founded by Tomas Landgreen as a single man freelance operation in 1989. In August 2000 the current company was
founded in partnership with Peter Holm. In the fall of 2001 a third partner joined the company with the addition of Henrik Mou who is
now Managing Director of Titoonic. In the spring of 2002 Titoonic became an A/S (Ltd.). Titoonic creates character animation, games,
design and graphics for the web. Their services include: Idea & Concept Development, Story-telling, Character Design, Animation,
Illustration & Graphic Design, Programming, Game Design & Production. The owner group and the creative team come from a
background in classical animation and graphic storytelling
KUDOS Aps
Frederiksberggade 15,2, DK-1459 Copenhagen K
Tel.: +45 33 91 00 44 * www.kudos.dk
Contact: Dorte Lehrmann
Digital Games – a Danish Perspective
Page 14
KUDOS was founded in 2002 by a mixed group of artists and production people, all passionate gamers with a strong background in
character animation, game development and graphic storytelling. KUDOS is a game company developing games for all platforms
including consoles and PC. Furthermore, KUDOS produces character animation, flash games and website design.
TV-Animation A/S
Landskronagade 66, 4th floor, DK-2100 Copenhagen
Tel.: +45 70 23 80 08 * www.tv-animation.com
Contact: Tom Vedel, CEO
TV-Animation is an animation studio and a live animation production house. TV-Animation make their own productions such as
animated series and live animated game shows, wrap children’s slots, brand entire TV-stations and create websites to match. TVAnimation is also a production facility taking on assignments from other companies. In order to make live animated shows and TV
games TV-Animation has developed The Cartoon Broadcast System, which is like a digital puppet theatre, where children participate
in the show by phone. The children call the show and use their phone-buttons to navigate in the games on TV. When they speak into
the phone an animated character move its lips accordingly on the TV screen. Clients include: BBC, ZDF, WDR, Teletoon France, Fox
Kids and all the Nordic public broadcasters.
Pinkfloor ApS
Sankt Pauls Plads 3, DK-1314 Copenhagen K.
Tel.:+45 33 93 33 28 * www.pinkfloor.com
Contact: Camilla Lyngbo Hjort, CEO * Camilla@pinkfloor.com
Pinktfloor was established in fall 2000 and has today 6 core employees – in addition to a network of freelance consultants and
technical partnerships. Pinkfloor develops concepts and content for entertainment services for primarily interactive media, and
produces entire cross media solutions based on a combination of new and traditional media. Pinkfloor has special competence in
storytelling and profound knowledge about communication to teenage girls. Pinkfloor has developed “PowerBabe” a new
entertainment brand for teen girls. Webgames have been published – and are to followed by a TV gameshow, a book, mobile and
console games.
Radar Film
Gammel Vartov Vej 62, DK-2900 Hellerup
Tel. +45 39126060 * www.radarfilm.com
Contact: Thomas Borch, Director
Radar Film was founded in 1997 and creates 3D character animation, visual FX, concept development for feature films, commercials
and TV Production. Radar Film has produced 3D animation for among others the following feature films: “Summer of the Wolf” ,
“Olsenbanden Jr under the Sea”, “I am Dina” and “Beyond”.
IVANOFF Interactive A/S
Ravnsborggade 8B 1. sal, DK-2200 Copenhagen N
Tel.: +45 70 22 33 23 * www.invanoff.dk
Contact: Søren Jensen, Managing Director
IVANOFF was formed in 1996 and is in the business of developing innovative and interactive cross-media entertainment and
educational software. The mission is to develop coherent and innovative electronic entertainment concepts for children and adults
that can be utilised in interactive digital products. IVANOFF’s CD-ROM series “Skipper & Skeeto” (Magnus & Myggen) has been
released in 13 countries as fully localised versions. The family CD-ROM game “Super Detectives” has been sold in all the Scandinavian
countries.
Kongo Interactive
Løgstørgade 8, DK-2100 Copenhagen Ø
Tel.: +45 35 38 38 38 * www.kongo.dk
Contact: Per Rosendal
Kongo Interactive was set up in March 2003 and is dedicated to all aspects of interactivity, games and communication. Kongo
Interactive has special competencies and knowledge about communication to children and young people, in addition to developing
imaginative and original content. Kongo Interactive is owned by Per Rosendal, former owner of Savannah Interactive Entertainment.
MEDIAMOBSTERS
Valkendorfsgade 22, 1151 Copenhagen K
Tel.: +45 33 32 37 11 * www.mediamobsters.com
Contact: Adam Gregersen
Founded in May 2000 MEDIAMOBSTERS aim is to create games with high levels of social interaction making players able to help,
provoke, fight and work together. The company is divided into three divisions: ODD Division makes Board Games, DIG Division makes
Computer Games and WEB Division makes Online Entertainment. MEDIAMOBSTERS has released more than five new board game
titles during 2001 and 2002. Their DIG division has developed its first grand scale computer game “DON” - a multiplayer RTS (Real
Time Strategy) game - scheduled to be released in 2003.
Omen Media
Pilestræde 8B 3. * DK-1112 Copenhagen K
Tel.: +45 33 110 330 * www.omen.dk
Contact: Gert Sander
Digital Games – a Danish Perspective
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Omen Media designs and develops interactive applications biased towards filmic content and aesthetics. Core activities comprise
interactive cinematic storytelling, interface design and development of concepts and content for DVD, Web-TV and iTV. Omen Media
has produced “The Cinematic Treasure”, which was well-received in DK and nominated for the Europrix.
Easy Film Multimedia
Sølvgade32 * DK-1307 Copenhagen K
Tel.: +45 33 44 74 00 * www.easyfilm.dk
Contact: Ole Thornbjerg, Digital Communications Director
Easy Fim was founded in 1984 by Niels Bokkenheuser. From a small company primarily involved in postproduction, Easy Film has
developed into one of the biggest production companies in Denmark. The media house produces commercials, documentaries, radio
programmes, entertainment formats, feature films and multimedia productions. In 1987 Easy Film became a limited company and in
1997 Dansk Kapitalanlæg took over 45 per cent of the shares.
Ghost ApS
Thorsgade 59 * DK-Copenhagen N
Tel.: +45 35 85 81 92 * www.ghost.dk
Contact: Jeppe Nygaard Christensen, Director
Ghost was founded in 1999 and has since then delivered Computer Generated Imagery and 3D graphics for the entertainment and
advertising industry. The team exists of professionals with extensive experience from the animation, design & film industry. Clients
include: Tivoli, Lego, Danisco, Nimbus Film og Peter Bech Film.
Gamalocus ApS
Istedgade 95, 1 * DK-1650 Copenhagen V
Tel.: +45 26135303 * www.cotwarlords.com
Contact: Lars Nielsen
Gamalocus Studios was founded June 2001 and specializes in developing games for the internet. The project “Call of the Warlords”
was first created as a boardgame in 1998 and has since been played, tested and expanded to become the game, which was first
launched online for closed beta testing in March 2001. The final and official version was released in April 2002. The project is
sponsored by Danish venture company Symbion Capital A/S, Denmark. Gamalocus is currently looking for further financing.
Kiloo ApS
Skt. Anna Gade 41, 2th * DK-8000 Aarhus C
Tel.: +45 86 122 234 * www.kiloo.dk
Contact: Jacob Møller, CEO
Kiloo has more than ten years of experience in the field of realtime computer animation, and is a leading company when it comes to
digital presentation and entertainment. In Q1 2002 Kiloo won the Nokia Mobile Challenge in the Entertainment category among over
500 contestants from around the world. In April 2003 Kiloo signed an agreement with ITE to develop four java games titles based on
ITE’s world famous Hugo the Troll brand.
Tabula Rasa Games I/S
Halmtorvet 28, 2th * DK-1700 Copenhagen V
Tel.: +45 3323 0328 * www.tabularasagames.com
Contact: Nick Smith, Project Manager
Tabula Rasa Games was founded in February 2003 by Alessandro Canossa and Nicholas Smith. Tabula Rasa Games was set up to
create a game based on the life of Hannibal; perhaps the greatest general of all time and to recreate his astounding achievement:
defeating the might of the Roman Army for 15 years. The game is to be a 3rd-person hand-to-hand combat game with an intelligent
battlefield tactical system plus a strategic overview of the entire military campaign. The development team includes expertise from
the Technical University of Denmark. Tabula Rase is currently looking for further financing.
Soup.dk
Oehlenschlægersgade 66, 3.th * DK-1663 Copenhagen V
Tel.: +45 33 24 81 62 * www.soup.dk
Contact: Jesper Juul
Soup is a Danish company dedicated to creating multiuser experiences on the internet. Company focus: web-based multiplayer games
and graphical chat systems. Developer of “Højhuset” (“High Rise”), the most popular graphical chat in Scandinavia. Soup also
provides concept development and consulting on multiuser environments and games.
Progressive Media
Urbansgade 21, 1 tv * DK-9000 Aalborg
Tel.:+45 23 45 78 54 * www.progressivemedia.dk
Contact: Thomas Nielsen
Progressive Media focuses on design, development and publishing of game titles for the console, handheld, wireless and online
market, and has produced several high-profile games for SonyEricsson mobile phones. The company is a licensed developer for
Nintendo Gamecube, Nintendo Gameboy Advance, Microsoft Xbox, and a Mophun Premium Developer. Progressive Media is currently
seeking a publisher for "Progressive Pinball", a 3D next-gen pinball simulator for Gameboy Advance, mobile phones and 3D game
consoles.
Digital Games – a Danish Perspective
Page 16
Interactive Multimedia Production
Gladsaxe Møllevej 23, 2. sal * DK-2860 Søborg
Tel.: +45 70 20 25 56 * www.im-production.com
Contact: jrh@im-production.com
Interactive Multimedia Production was established in 2001 and produce virtual 3D presentations and 3D games for the internet. IMProduction has over the years amongst others produced internet games for TVDanmark, Chilinet and Movement Travel.
Marble Eyes Development
Langdraget 23, 2th * DK-2720 Vanløse
Tel.: + 45 3871 7123 * www.marble-eyes.dk
Contact: Martin Halberg
Marble Eyes was established in 1996 in order to develop the game “Genetic Specie”. After the launch of “Genetic Specie” the
activities of the team has somewhat quieted down. But even though separated by geography as well as careers, the team are still
collaborating on ideas for future games.
The Planet A/S
Klerkegade 19, 4 * DK-1308 Copenhagen K
Tel.: +45 33 93 00 20 * www.planet.dk
Contact person: Mads Rydahl, CEO
The Planet is a Danish incorporated, founded in 1996. The Planet portfolio includes production design and promotional websites for
Danish toy manufacturer LEGO’s first CD-ROM production, which won the Danish Design Award, The ID prize, and Danish Ad
agencies Gold prize in 1996 and interface concept development for electronics manufacturer Bang & Olufsen. Additionally, The
Planets own website was the first Scandinavian site to receive a number of International awards, among which The Macromedia
Shocked Site of the Day and The Original Cool Site of the Day. Since the late nineties, The Planet’s main productive focus has been
online game development, and with strong ties to the New York division of LEGO Direct, The Planet has successfully produced and
delivered numerous 2D and 3D arcade, action and puzzle games for lego.com.
Feldborg Multimedia
Roskildevej 162, 2500 Valby
Tel.: +45 38796800 * www.feldborg.dk
Contact: Leo Feldborg
Feldborg Multimedia produces interactive presentations by using the latest technology. The team is made up of graphic artists and
programmers. The City of Fun Physics is an educational CD-ROM for secondary school pupils - awarded "Best Educational Multimedia
for Children" in Denmark. The CD-ROM deals with both physics and chemistry in the form of an adventure where the pupils are
involved in helping the inhabitants in a city. The decisions they make affect both the environment and the economy of the city, and
the discussions in the programme are all in some way or another related to energy. Two animated characters are constantly
challenging the pupil's curiosity, throughout the CD-ROM.
Light Stone Media
Eskilsagre 8, 8961 Allingåbro
Tel: +45 86 48 69 59 * www.lightstone.dk
Contact: Mogens Buus
Light Stone Media is involved in game development, in addition to 2D animation and graphic design for the web. Light Stone Media is
owned by Mogens Buus, graphic designer/artist and animator. Mogens Buus has previously worked as animator on the PC-games
“Pixiline 5” and “Pixiline 6”.
EGAR Games
Kystvejen 29 * 8000 Århus
Tel.: +45 70 20 09 51 * www.egar.dk
Contact: Per Lange, External Affairs
EGAR ApS was established in May 2000 and is divided into EGAR Technology, EGAR Games and EGAR EDU Media. EGAR counts a
team of 11 people. EGAR Games consists of experience game developers and has developed Fun-games, edu-games and PR-games.
Shockwaved ApS
Peder Hvitfeldts Straede 15, DK-1173 Copenhagen
Tel.: +45 7027 2227 * www.schockwaved.com
Contact: Chr. Hvidkjaer, Creative Director
Shockwaved was established in 2001 – and core competences are entertainment, e-learning & presentations. Shockwaved is involved
in advergames and mobile gaming/location based games. Their objective is to build & strengthen their client’s brand & relations to
their customers through engaged & innovative solutions.
Pinocchia A/S
Louiz * Fabriksmestervej 4 * DK-1437 Copenhagen
Tel.: +45 70 27 06 08
Contact: Hanne Davidesen (Creative Director/Manager), Pouline Middleton (Producer)
Pinocchia A/S was founded in 2001, and the aim is to develop integrated storytelling concepts for children. Pinnochia develops new
creative ideas, raises capital and finds partners to produce and distribute original story concepts for children across platforms. The
first story-concept in development is based on the 9 year old philosophic character "Otto". Based on this character and universe the
Digital Games – a Danish Perspective
Page 17
aim is to develop and produce a feature film, tv-concepts, a tv-series, an internetbased community in addition to intelligent toys
/merchandising.
Danish semi-public funds: Teknologisk Innovation (TI) and Vækstfonden, in addition to Sandrew Metronome Danmark A/S have
invested in the "Otto-concept”.
Unwiredfactory
Fruebjergvej 3, Box 122 * DK-2100 Copenhagen Ø
Tel.: +45 39 17 98 75 * www.unwiredfactory.com
Contact: Anders Kjærsgaard Sørensen, CEO
Unwired Factory was established in 2000 and offers a number of services to its clients. Among others a range of location based
entertainment services targeting the youth segment of both genders. Examples include: “BattleMachine” (version:
www.zonemaster.dk), “TreasureMachine” – a location based virtual treasure hunt, and “Girlfriends”. Symbion Capital I A/S, a Danish
based Venture Capital Company, has invested in Unwiredfactory.
niemo entertainment ApS
Møllebovej 6 * DK-2640 Hedehusene
Tel.: +45 46 56 38 61 * www.niemo.com
Contact: Niels Jørgensen
niemo focuses on entertainment software for the internet and massive multiplayer games taking place in persistent on-line
worlds, where players themselves design and evolve story and content. niemo's first multiplayer online strategy games was
“Hexadome” launched in a beta version at Christmas in 1999. In the autumn of 2000 the complete version was launched by Ubi Soft’s
online label GameLoft. A new and larger scale on-line game is currently in development with expected release in 2004.
Congin
Baggesensgade 33, 4 tv. * DK-2200 Copenhagen N
Tel.: +45 26 84 19 69 * www.congin.com
Contact: Christian Fonnesbech, Director
Congin was founded in 2002 by Christian Fonnesbech. Congin is a european design studo for dramatic and interactive content.
Working with production houses, advertising bureaus and media companies, Congin develops storybased content for a variety of
purposes, platforms and audiences. Its expertise is the goal oriented design process, where drama, interaction and strategic
detachment blend into a seamless whole. Congin has also carried out consulting work for The Danish Ministry of Culture, The
Danish School of Journalism and The European Commission’s IST programme.
4.2 Companies selected for MEDIA Support
Table 4.1 lists the Danish companies which have been selected for MEDIA Multimedia Development
support from 1997- March 2003. In total more than DKK 7 million.
Table 4.1 Danish companies selected for MEDIA Multimedia support
Company
Egmont Imagination
Deadline Games
Angel Distribution
Deadline Games
Deadline Games
Deadline Games
Oncotype Aps
Pixeleers
Danmarks Radio
Playscape Research
Foreningen SPOR
Deadline Games
Savannah
Easy Film
Deadline Games
IO Interactive
Bitmonks ApS
Total
Project title
Zocky
Snorting Bull
Detective Maze
Pax Vobiscum
Giften
Englen
Box-Junction
Zog
Death in Slow Motion
Morgana
Cultural Fiction Multimedia
Englen
Double Trouble
(Part of a Slate-funding)
Overdose
GirlGame / Eve
Shadow of Pandora
Digital Games – a Danish Perspective
Call
6/96
10/97
7/98
7/98
7/98
7/98
7/98
7/98
7/98
7/99
7/99
7/99
5/2001
84/2001
84/2001
84/2001
82/2002
Support
euro
35.000 (loan)
20.000 (loan)
17.881 (subsidy)
20.000 (subsidy)
20.000 (subsidy)
20.000 (loan)
9.000 (subsidy)
250.000 (loan)
150.000 (loan)
14.400 (subsidy)
19.465 (subsidy)
155.111 (subsidy)
50.000 (subsidy)
29.500 (subsidy)
50.000 (subsidy)
50.000 (subsidy)
50.000 (subsidy)
960.357
Page 18
5. Associations & Networks
5.1 Game Development Sector
In Denmark the game development sector is very fragmented and it has not, as of yet achieved the
recognition and benefit of other creative industries. So far no “group/organisation” in Denmark has been
successfully in developing a single voice for the Danish independent games developers community. A
group which can represent the interests of the game development sector and take care of issues such as:
legislation, new funding mechanisms, guidance, skills development in content creation, insuring the
recognition of games as original creative works and improving the public profile of the industry. This
stands in contrast to for instance the independent film & TV industry in Denmark where most companies
are members of the Danish Producer Association.
In Norway game companies can be a member of the Film- & TV Producer Association. However, recently,
three of the largest independent games developers in Norway created their own association for game
developers called “Spillprodusentforeningen”. The three companies are: Funcom, Innerloop Studios and
Capricornus. In the UK, independent games developers created their own trade association in March 2001,
named TIGA. TIGA represents the business and commercial interests of independent game developers those that are not controlled by publishers and whose principal business is the development. TIGA has
more than 70 members and is the single voice for the independent games developer community in the UK.
www.tiga.org.uk.
Professional organizations / associations for game developers in Denmark include:
12

IGDA Copenhagen. A branch of International Game Developers Association (IGDA). IGDA has
today approximately 15000 members and more than 50 local “chapters” worldwide. IGDA is an
independent, non-profit association established by game developers to foster the creation of a
worldwide game development community. IGDA Copenhagen is a chapter network where all
individuals interested in game development are welcome, including programmers, designers,
artists, producers and many other development professionals. Both social informal and more
serious theme meetings and company visits are organised. Standard meeting time & place: last
Thursday every second month, Temple Bar, Nørrebrogade. IGDA Copenhagen’s website includes
information about the Danish game developer community – and on www.igda.org a range of
interesting information is available, including legal topics, technical aspects, academic relations,
online games research, Women in Game Development, etc.
Contact person: Jacob Buck. www.igda.org/denmark

Producentforeningen (Danish Producer Association). The Danish Producer association consist of
82 members. The association is sub-divided into four categories: 1. film, 2. tv, 3. advertisement, 4.
interactive media. Nearly all members have their roots in the film & tv industry. As regards the
interactive media category, seven companies are listed, one of which has interactive
content/games as main business, namely Deadline Games. The Producer Association is a member
of TIGA (The Independent Games Developers Trade Association) based in the UK. According to a
press-release from 28 October 2002: “one of the reasons why we have become a member of TIGA
is to strengthen our political efforts in the area of interactive media and to gain access to
knowledge. Furthermore, members in DK can avail themselves of TIGA membership opportunities.
In addition, in future EU initiatives will be coordinated in conjunction with both the French and UK
organisation in this field.”12
Contact persons: Klaus Hansen and Malene Rafn. www.pro-f.dk
“Interaktive medier styrkes”. Press release from the Danish Producer Association. 28 October 2002.
Digital Games – a Danish Perspective
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
IT-Brancheforeningen (The Danish IT Industry Association (ITB)). ITB has 205 members, and
four of them are in the business of developing creative interactive content/games, namely: ITE,
Pinkfloor, Schokwaved and Savannah (Dansk Bredbånd). ITB is sub-divided into a number of
business-areas – one of them is a group for “New Media”. This group – with a total of 11 people –
is headed by one person from the “entertainment developer sector”, being Søren Sørensen, CEO,
ITE. The “New Media” group focuses amongst other things on strengthening the opportunities for
development and export of quality games/interactive storytelling. According to ITB’s website its
members represent more than 90% of the total turnover in the IT, telecom, and internet
businesses in Denmark. Furthermore, ITB has been involved in establishing two Danish IT
Universities. ITB also acts as a secretariat for the Danish Venture Capital Association and the
association of producers of equipment for the mobile industry.
Contact person: Jane Eis Larsen. www.itb.dk / www.dvca.dk / www.mobiltelebranchen.dk
5.2 Other professional associations worldwide
IGDA – International Game Developers Association (San Francisco/USA). IGDA has today approximately
15000 members and more than 50 local “chapters” worldwide. www.igda.org
ELSPA – The Entertainment and Leisure Software Publishers Association. ELSPA was founded in 1989 to
establish a specific and collective identity for the computer and video games industry. Since then the
membership base has grown from 12 to 100, and include companies involved with the publishing and
distribution for interactive leisure and entertainment software. www.elspa.com
IDSA – The Interactive Digital Software Association. IDSA is the U.S. association dedicated to serving the
business and public affairs needs of the companies publishing interactive games for video game consoles,
handheld devices, personal computers and the internet. IDSA has approximately 25 members. According
to IDSA’s website, its members account for 90% of the $6.9 billion in entertainment software sales in the
U.S. in 2002. www.idsa.com
IFMA – International Federation of Multimedia Associations (Montreal/Canada) www.fiam.org
EdiMA – European Digital Media Association (Brussels) www.edima.org
5.3 Networks in Denmark
Louiz. Louiz is an innovation millieu for cultural entrepreneurs. Louiz functions as a type of incubator for
new firms, where cultural entrepreneurs with a good business concept can set up and are offered a range
of services including: office space and equipment, coaching, lectures and seminars, advisory services and
assistance in developing a business plan and starting a business. In addition financial support and contact
to potential investors are offered. Louiz aims at building contacts between business and industry and the
cultural sector. A network of people from private companies, cultural industries, cultural institutions and
artists is the backbone of Louiz. Louiz is established with the support of the Danish Government.
www.louiz.dk
Crossroads Copenhagen. Crossroads Copenhagen is a professional network of public and private
enterprises aimed at transforming Ørestad Nord into an international centre of development for culture,
media and communications technology. The major enterprises involved in Crossroads Copenhagen are the
Danish Broadcast Corporation (DR), the IT University of Copenhagen (IT-C), Copenhagen Business School,
NOKIA, CSC, The Royal Library, the Faculty of Humanities at the University of Copenhagen, HewlettPackard, TDC, the Danish Consumer Information and the Danish Business Daily Børsen.
www.crossroadscopenhagen.com
Digital Games – a Danish Perspective
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6. Finance
6.1 Traditional funding model
Traditionally publishers have been and are the source of funding for developers. Asked at a EU-conference
in Copenhagen, 22 July 2002 arranged by the Danish Ministry of Culture, how a games developer gets to
sign a contract with a publisher, Peter Molyneux, CEO of Lionhead Studios, UK, said: “What counts, is the
developer’s track record, the composition of his production team, and – of course – a convincing project
shown in a demo.
In summary:
 Publishers have cash, developers don’t!
 Publishers funds prototypes
 Publishers pays royalty advances to developer
 Amount of advance is based on cost excluding some overheads and profit
 Developer often gets back-end royalties
Source: Bob Hopkins, Wise Monkey, presentation, MEDIA Desk Denmark, Nov. 2002
Financing a console game – an example
Phase 1: Game development company “GameZ” develop and complete a playable tech demo. GameZ
search for a publisher of the game. GameZ funds the project until publisher has seen a working tech demo
(or full prototype) & design document including the gameplay elements. GameZ has typically invested
between EUR 250-400.000 in Phase 1 on development. If the developers has never developed the type of
game or for the target platform (PS2 etc) then the demo has to be far more developed and can cost up to
EUR 600.000 for the developer.
Phase 2: Publisher becomes involved. Publisher funds project development costs from day of signature
onwards to completion according to a negotiated budget. The invested amount from Phase 1 is still risk
money for the developer. The publishing contact typically allows the publisher to pull out of the contract
without reason at one months notice. Most of the time, the publishers impose a contract with the
developers which foresees remuneration in two components: an advance on royalties and proportionate
remuneration depending on success. The royalty rate a publisher is willing to pay to a developer ranges
from 10-35% of Net Income, with the latter percentage only being paid to experienced and recognized
developers with a strong track record. Companies which have not produced a game before can only expect
7-10%. All royalties are recoupable, meaning that GameZ will not receive any royalties from publisher until
the publisher has recouped its advance/min. guarantee/investment. Also, the less advance publisher has to
come up with, the less risk on publisher, and hence the higher the royalty rate to the independent game
developer. It is furthermore most likely that the publisher will insists on the developer signing over all IP
rights to the publisher and even if the publisher reneges on the contract, the publisher has a right to
income up to the invested amount generated by the developer through another publisher.
Advance on royalties are fixed on the basis of the budget which covers the cost of development. The
period of development is often in the region of 2 years and is divided into stages (milestones). The
publisher pays an up-front amount upon signature of a contract and the balance is to be paid successively
when the pre-determined milestones are met. The publisher is in some way like a development bank. If
this development does not go according to the schedule or has unforeseen budgetary costs, which is often,
GameZ must renegotiate its base contract.
The proportionate remuneration from effected sales is paid once the production costs have been recouped
at the rate of royalty agreed, i.e. if the contract allows a 20% royalty to the developer, the advance is
Digital Games – a Danish Perspective
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recouped at a rate of 20% of the income generated by the title, while the remaining 80% goes directly to
the publisher. The notion of production costs encompasses other elements than the development costs
and in particular, some publishers charge a number of costs which arise from marketing. However, it is
important to note that models for calculating Net Income differ between publishers.
Phase 3: Producing AAA titles means titles selling enough copies to reach the sales charts in major
territories, meaning approximately 500.000 copies world wide. The number of copies GameZ can expect to
sell in Denmark is say approximately 5.000 copies.
The retail price for a console game in Denmark is approximately EUR 50 incl. vat and publishers net
invoiced price to distributors/retailers can be EUR 34. If 400.000 copies are sold times EUR 34 = EUR 13,6
million. From this amount the publisher deducts the royalty advance (= min. guarantee), which normally
equals the developing/production costs – for instance EUR 2,5 million – plus deducts the
marketing/trademark costs and other costs – for instance EUR 8 million. This leaves EUR 3,1 million – and
from this GameZ has negotiated a deal where it receives 23% royalty = EUR 713.000. Of course, deals can
vary depending on what type of deal the developer makes with the publisher. The above is just an attempt
to give an example.
6.2 Typical costs
Costs involved in producing games can of course vary a lot. However, in order to give a picture of what
type of budgets we are talking about; a PC-game can cost EUR 750.000, a PlayStation 1 game
approximately EUR 1.500.000 rising to EUR 3 million for a PlayStation 2 / Xbox game. The next generation
of video consoles may bring the costs of a game up at around EUR 6 million. A mobile game can typical
cost EUR 100.000 to develop – but again – it varies greatly and these figures should only be looked as a
general indication. According to Janos Flösser, IO Interactive the development costs of “Hitman 1” were
approximately DKK 18 million (EUR 2,4 million). Add to this DKK 20 million (EUR 2,7 million) in
national/international marketing costs and trademark. Deadline Games’ new action game picked up by U.S.
publisher Take Two has a development budget of DKK 20 million (EUR 2,7 million) for three platforms (PC,
PS2 & Xbox). In contrast the costs of developing the first “Pixeline” CD-ROM game from Studio 1-2 in 1995
were DKK 750.000 (EUR 100.000), less than 1/10.
As demonstrated in table 6.1 over the last decade the scale and cost of games development has risen
tremendously. As a result of this the advances a developer need has risen, which in turn means that the
number of copies which a game need to sell also has to be higher, if the developer is to earn royalties. In
other words, for the developer to earn royalties in today’s market, the developer has to produce a hit.
Table 6.1 Increasing Development costs
Concept
Prototype/Game design
Production
Back-end royalties
10 yrs ago
negligible
20,000 euro
150,000 euro
common
Now
Still low
400,000 euro
3-6 million euro
rarer
Source: Bob Hopkins, Wise Monkey, presentation, MEDIA Desk Denmark, Nov. 2002
At present, the development of original titles relies, almost exclusively, on direct funding from the
publisher/distribution channel. As costs continue to rise, publishers have become increasingly reluctant to
invest in the early stages of the development lifecycle, leaving the developers to pick up the shortfall.
Whilst costs have risen, development time have however remained constant, to ensure that games are
published before their core technology becomes obsolete. Not surprisingly, this has placed tremendous
pressure upon developers, particular those attempting to produce original concepts/prototypes, potentially
highly rewarding, but consequently perceived as high risk. Publishers are not too interested in funding
original prototypes – the result of which is lack of funding for fresh original content. Publishers are more
Digital Games – a Danish Perspective
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interested in funding franchises, sequels and licenses as this is more “secure” business. Licenses are for
instance, for games based on books or films such as Harry Potter or James Bond, or sport events.
However, a strong funding base is needed to be able to acquire such licences. According to Bob Hopkins
from Wise Monkey in the UK, approximately, 60-70% of the games on the market are franchises/sequels
and only 30-40% is original content. Furthermore, it is the top 5% of titles make 95% of the total games
revenue!
6.3 Subsidy Schemes in Denmark
At the moment there are no public subsidy schemes available for the development, production, distribution
and marketing of digital games in Denmark. This is in contrast to another creative industry, namely the
Danish film industry, which in 2003 has a total budget from Ministry of Culture of DKK 350 million (EUR 47
million), of which DKK 204 (EUR 27 million) is allocated to the Production & Development department of
the Danish Film Institute.
In the past a subsidy scheme including artistic multimedia was established by the Danish Ministry of
Culture. However, this Culture Development Fund was closed down in 2002. Some of the game
development companies which were supported include: Savannah with DKK 1 million (EUR 134.230) and
the pc-game for women: “Morgana”. A complete list of projects supported can be found at
www.kulturministerietsudviklingsfond.dk/proj2.htm. Also for the past couple of years The Film Workshop
(Filmværkstedet) of the Danish Film Institute has been involved in interactive media and has supported the
development of three “Interactive Film” projects, which were recently released. However, no further funds
are available. www.dfi.dk
6.4 National support models in other countries
Listed below are some examples of national support models in other countries. Especially, Canada has
been in front in respect of setting up funds for “new media”, in addition to encouraging co-productions.
Recently, CNC in France has set up a fund for video games with a budget of EUR 4 million.
As public development funding for interactive media/games become available in various countries, is it
then likely that co-productions across border may happen in respect of digital games? A scenario where
producers from different countries join forces to obtain the benefits of subsidies in their home countries
or/and a creative collaboration. The benefits of co-production can include: enlarging financial opportunities
which in turn could reduce financial risk and secure greater distribution and exploitation. Today this is the
most common way of financing European feature films, including 2D & 3D animation film.
Country
Norway
Finland
France
UK / Scotland
Support models
Norsk Filmfond has allocated NOK 3 million (EUR 400.000) to support the development of Norwegian
new media/interactive projects, including games. The scheme has not been implemented yet.
www.filmfondet.no
The Ministry of Trade supports a fund of NOK 120 million (EUR 16 million). It is possible for this fund
to invest in game development.
No public subsidy is available. However, “Tekes”, the National Technology Agency has supported game
developers, including Remedy Entertainment, Housemarque and Codetoys. Tekes has an annual
budget of EUR 380 million. www.teks.fi/eng/
CNC has been restructured – and CNC has now set up a fund for video games with a budget of EUR 4
million. This fund will finance the preproduction of 20 games for independent studios at EUR 200.000
per game. These sums will be loan, in case of commercialisation, and subsidies, on the contrary.
UK has tax credits for the games industry. One can claim up to 150% back on R&D.
www.tiga.org.uk/members
Scottish Screen has just appointed a “New Media” Executive, Morten Petrie. It will be interesting to
keep an eye on further developments at Scottish Screen, which is also involved in the Edinburgh
Games Festival.
Digital Games – a Danish Perspective
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Germany
Canada
The MFG Film Fund (Filmförderung Baden-Württemberg) has a Digital Content Fund of EUR 500.000
per year, which has existed for two years and supported about 12 projects including prototypes and
development of computer animation. www.mfg.de/film  choose “Beratung und Förderung / Digital
Content“.
Nordmedia Fonds GmbH – EUR 10M fund supporting any kind of media, including development of
games. Support “casual production” = mixture between cultural & commercial. www.nord-media.de
MFG (Mitteldeutsche Medienförderung) mainly supports film projects, but can also support game
development and production of 3D animation in the region. www.mdm-online.de
Canada New Media Fund, launched in 2001, provides $9 million per year in support of the
predevelopment, development, production marketing & distribution of Canadian new media products.
The fund is financed by the Department of Canadian Heritage a governmental body and administered
by Telefilm Canada – a Public Private Partnership (PPP). www.telefilm.gc.ca
The Manitoba Interactive Media Fund. Budget: $300.000 annually. Administered by Manitoba Film &
Sound, who also adm. the Tax Credit Programme in the region. Funded by the Province of Manitoba.
www.mbfilmsound.mb.ca
Ontario Media Development Corporation – supports cultural media industries, including interactive
media + administer the provincial tax credits for the cultural media industries. Budget: $30 million in
funding over five years. www.omdc.on.ca
SaskFilm – supports the film, video and new media community of Saskatchewan + encourages int. coproductions + adm. tax credits program. www.saskfilm.com
Telefilm Canada – the key cultural investment agency of the Canadian Government. Support dev. &
promotion of Canadian film, tv, new media and music. www.telefilm.gc.ca
Various tax credits schemes exists in connection with funding systems located in various areas. For
instance Manitoba offers a 35% tax credit rebate of approved Manitoba labour expenditures.
6.5 Seed/venture capital involved in game development in Denmark
Vækstfonden. Vækstfonden is a public organisation and is the biggest fund of seed and start-up capital
in Denmark. Vækstfonden invests in projects with high risk involved and it primarily supports technology
and biotechnology. However, it is also considering investing in digital games companies. Of the companies
listed in section 4, Vækstfonden has supported/invested Pinnocchia ApS.
At the end of 2003 a fund for entrepreneur/up-start companies will be established and administered by
Vækstfonden. The fund is for all type of businesses. www.vaekstfonden.dk
Teknologisk Innovation (TI). TI is a semi private fund – and is a subsidiary of Dansk Teknologisk
Innovation (DTI) which is an independent, not-for-profit institution, approved by the Danish authorities to
provide technological services to business and the community. TI invests capital in innovative business
ideas in the preseed and seed phase, and at the same time cooperate with capital and venture companies
about additional financing - leading the project/company to an attractive exit. TI invests in three main
areas: Industrial technology, Product development and IT. The investment profile of the ladder category
also include: games/entertainment. The projects have to be scaleable and have export potential. TI add
value to their portfolio companies by offering coaching and consulting and by giving access to networks of
advisers, technical experts, industry and capital. Max. investment is DKK 1 million (135.000 euro). In
return of the TI’s capital contribution (combination of capital + loan) they receive a percentage of
ownership of the company. Of the companies listed in section 4, TI has supported/invested in Pinnocchia
A/S, Bitmonks ApS and Media Mobsters ApS. www.tekinno.dk
Symbion Capital I A/S. Symbion Capital I A/S is a Danish based Venture Capital Company providing
venture financing to research and knowledge-based projects and innovative start-ups in the
Øresund/Copenhagen region within the areas of IT, biotechnology and medico. Ownership of Symbion
Capital I A/S is: Symbion A/S, Kirkbi A/S, ATP Private Equity A/S, Tryg Forsikring A/S, Nordea Bank
Danmark A/S and European Investment Fund. Symbion Capital is part of Symbion – a private science park
and incubator. Symbion hosts around 75 innovative start-up companies. Of the companies listed in section
4, Symbion Capital has invested in Unwiredfactory and Gamalocus ApS. www.symbion.dk
Olicom A/S. Olicom is a Venture Capital Company investing in leading edge information technology and
communication technology companies. Geographically Olicom focuses on start-ups located in Scandinavia.
Digital Games – a Danish Perspective
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Of the companies listed in section 4, Olicom has invested in Interactive Television Entertainment ApS.
www.olicom.com
Dansk Kapitalanlæg. Dansk Kapitalanlæg is one of Denmark’s biggest venture capital companies. It
invests venture capital and subordinated loan capital in competitive companies with growth and earnings
potential. Investments are normally made on a five to ten year timescale. Of the companies listed in
section 4, Dansk Kapitalanlæg owns 45 per cent of the shares in Easy Film A/S – which also include a
multimedia department. Dansk Kapitalanlæg has also invested in Savannah A/S and Dansk Bredbånd A/S.
www.dankap.dk
6.6 Nordic & European Financial Initiatives
Nordic Council of Ministers. The Nordic Council of Ministers has a budget of DKK 6.621.000 ( EUR
89.000) for Strategic Cultural Projects in 2003. Out of this budget DKK 4.621.000 (EUR 620.000) is
earmarked for projects in the field of digital content production – including games. However, it is important
to note that the applicant has to be one of the Nordic Minister of Councils own institutions or/and the
project has to be submitted through one of those institutions. www.norden.org/kultur/gensats/sk/digindh.asp?lang=1
MEDIA programme of European Commission. The MEDIA Plus and MEDIA Training Programmes of
the European Commission, provide support for audiovisual creativity and the audiovisual industry in
Europe. The MEDIA Programme runs from 2001-2005 and has a total budget of EUR 400 million (350
million for development & distribution) and EUR 50 million for Training.
An independent European development company can apply for MEDIA Multimedia Development of new
production projects with an international potential and creative appeal. Support is offered for single
projects or project development for Slates of Projects. Support amounts for single project: EUR 10.000,
EUR 30.000 or EUR 50.000. Support amounts for slates of projects, Slate I = 3-4 projects, EUR 60-90.000
and Slate II = 5-15 projects, EUR 100-125.000 euro. Support can be granted to the following type of
projects:




Concepts for series of interactive animation specifically designed to be delivered on-line (excluding
individual short films)
Edutainment programmes, character based adventure games and multiple player games on the
intranet or on-line
New narrative or games concepts for interactive television, internet and/or broadband delivery
(and mobile)
Interactive programmes to be used exclusively on a personal computer and specifically developed
to accompany or complete an existing European audiovisual project, or on-line production to be
supported by a hybrid DVD, or a boxed set of VHS and CD-ROMs, etc.
The applicant has to demonstrate matching funding at least equivalent to the amount applied for. If the
project co-financed by MEDIA goes into production, the company has an obligation to reinvest the same
amount in the development of another production project once. Further info.:
www.europa.eu.int/comm/avpolicy/media/index_en.html
European Investment Bank (EIB) / European Investment Fund (EIF). The EIF is a financial
institution of the EU specialised in venture capital and portfolio guarantees. The EIF is based in
Luxembourg and was established in 1994 as a joint venture between EIB, the European Union
(represented by the European Commission) and European banks and financial institutions. EIB is the
Digital Games – a Danish Perspective
Page 25
majority shareholder in EIF. EIF has invested EUR 16.5 million in Finland based Venture Fund for Creative
Industries. The Fund for Creative Industries invests primarily in production companies, not projects. Most
of the Venture Fund’s investments are in television production, games development and other
entertainment related companies. Geographically the fund is currently active in Sweden, Finland, UK and
Austria. The fund has looked at several companies in Denmark but has not yet completed an investment in
Denmark. Most of the companies CIM has invested in have not wanted to make the investment public, for
competition reasons, and MEDIA Desk Denmark is therefore not able to list company names. However, an
example of a company CIM has invested in is Zenith television: www.zenith-entertainment.co.uk /
www.eif.org / www.cimfunds.com
6.7 Completion Bonding
A completion guarantee is a highly specialised financial instrument that is extremely vital and central to the
film business, especially in independent film financing. However, this instrument has also been used in a
number of game productions, especially in the UK. In Denmark IO Interactive has used this instrument in
connection with the production of Hitman 1, Hitman 2 and Freedom Fighter. The provider of bonding for
those projects were Film Finances Scandinavia ApS, a wholly owned subsidiary of Film Finances Inc., L.A.
How does it work? A completion guarantee is given by a “completion guarantor” to ensure that a project
will be delivered on time and on budget in accordance with the script, schedule and technical quality.
At its simplest this means that you get your money back if you are funding a project and the above
conditions are not met. Completion bonding therefore deals with the problem of “delivery risk”.
In the event that the project goes off-track/can not be delivered by the specified date – the completion
guarantor has the right to intervene in the project’s management – and ultimately the right to take over
the project. This also means that a completion guarantee is a performance guarantee and not an insurance
policy. Hence, in order for it to work according to its intent and purpose, the guarantor has to have wide
ranging powers, as a non-performance would have certain direct consequences for the guarantor.
It is important to note, that a completion guarantee is not at guarantee that the financial commitments will
be made available, nor does it assume the credit risk of the various financiers (i.e. publisher). The risk on
the investors’ payment is the game developer’s unless the game development company has chosen to
have a bank discount the financial commitment (i.e opts for a bank to provide a production loan). That
moves the financial risk on to any of these investors (i.e. publisher) from the game developer to the bank.
The requirements of the bonding company, includes a developer with a good track record, prototype
should be completed, financially sound publisher (or/and investors) and no un-transferable primary
licenses.
The costs of a bond can vary quite a lot. Normally it will be calculated as a percentage (3-5%) of the
approved budget less contingency allowance and the completion guarantee fee itself. A completion bond
requires a certain amount of work and it is not really economically feasible if the budget is much less than
EUR 1M. Of course, there are always exceptions to the rule.
The following summarises the general procedures: game developer GameZ goes to a bank, where it asks
for a production loan in order to cash flow the production. In order for GameZ to obtain a loan, the bank
will ask for publisher contracts and other bankable commitments, such as funding from public support
systems, as collateral. The bank discounts these contracts or, in other words, lends against these
contracts. In time the bank will advance GameZ a cash amount. The various commitments are assigned
from the production company to the bank, so payments will be made directly to the bank. Most of the
contracts will be at least in part conditional upon the game’s delivery. If GameZ does not deliver or does
not deliver on time, the publisher commitment may not stand and the bank may lose its repayment. Unless
that is, a completion guarantor has guaranteed delivery (on time and budget). If a completion bond is in
Digital Games – a Danish Perspective
Page 26
place, the bank can then turn to the bond company and require the bond company either to secure
delivery or repay the bank loan. In conclusion: the bank takes out credit risk on the publisher and the bond
company takes out the delivery risk.13
Production loan
MEDIA BANK
ASSIGNMENT
COMPLETION
BOND
COMPANY
PRODUCTION
COMPANY
PUBLISHER, SUBSIDIES
INVESTMENTS, ETC.
13
Source: Fine Art of Co-producing. Per Neumann in association with Charlotte Appelgren. Media Business School. 2002.
Digital Games – a Danish Perspective
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7. Distributors in Denmark
Main distributors in Denmark of PC & Console games include among others:
PANVision A/S*
Strandboulevarden 122, 5. sal
DK-2100 København Ø
Tel.: +45 70 23 73 23
kontakt.dk@panvision.com
www.panvision.com
VU Games (Vivendi Universal)*
Strandboulevarden 122, 5. sal
DK-2100 København Ø
Tel.: +45 39 12 62 10
www.vugames.dk
Infogrames Nordic (Atari)*
Nørregade 85, 1. sal
DK-7100 Vejle
Tel.: +45 75 83 00 95
mail@infogrames.dk
www.infogrames.dk
Electronic Arts Danmark*
Gl. Lundtoftevej 1 E, 2. sal
DK-2800 Lyngby
Tel.: +45 45 28 70 00
www.ea.dk
Microsoft Danmark ApS*
Tuborg Boulevard 12
DK-2900 Hellerup
Tel.: +45 44 89 01 00
danmark@microsoft.com
www.microsoft.dk
K.E. Media ApS
Sintrupvej 12
DK-8220 Brabrand
Tel.: +45 89 44 22 00
mail@kemedia.com
www.kemedia.com
(represents Take 2 Interactive,
Acclaim Entertainment, CDV
Entertainment, THQ. In addition to
PC titles sold under the following
brands: Disney Interactive, PC Best
Buy, Børnenes Favoritter)
Ubi Soft Entertainment Nordic A/S*
Nordre Fasanvej 108
DK-2000 Frederiksberg
Tel.: +45 38 32 03 00
ubisoft@ubisoft.dk
www.ubisoft.dk
Take Two*
Vesterbrogade 40, 1. sal
DK-620 Copenhagen V
Tel.: +45 70 10 33 11
Nordisk Film Interactive*
Halmtorvet 29
DK-1700 København V
Tel.: +45 33 26 68 00
nfi@nordiskfilm.com
www.nordiskfilm-interactive.com
ITE ApS
Nattergalevej 6
DK-2400 Copenhagen NV
Tel.: +45 70 200 200
mail@ite.dk
www.ite.dk
(represents Sony)
(represents Hugo the Troll)
Bergsala A/S (Nintendo)*
Hesseløgade 16
DK-2100 København Ø
Tel.: +45 70 21 11 06
info@begsala.dk
www.nintendo.dk
Savannah / Dansk Bredbånd
Toldbogade 39
DK-1253 Copenhagen K
Tel.: +45 33 38 58 20
info@savannah.dk
www.savannah.dk
(represents Savannah product, incl.
Rasmus Klump & Bellini)
*member of ”Multi Medie Foreningen” (computer game distributor association in DK). www.multimedieforeningen.dk
Digital Games – a Danish Perspective
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8. Education & Academia
8.1 Education
Creating and developing games is a very specialised business (see section 3). So far the Danish
development sector has more or less educated the development teams themselves, by taking on board
people from already existing creative and academic programmes – with a very passionate interest in
making and playing computer games. Alternatively, people from abroad have been taken onboard.
Approximately 250 people is employed by the four biggest game developers in Denmark, IOI, ITE,
InterActive Vision and Deadline Games.14 Screen Digest estimates that in Scandinavia the development
sector (not the entire industry) employs approximately 900 people. The UK games industry employs more
than 20,000 people, and of these 6000 are in the development sector. 15 With the growth potential of the
game development sector it is reasonable to assume that more people will be employed in this sector in
future. However, according to some of the bigger studios in Denmark there is currently a shortage of
qualified people. Hence, Denmark has to get started now if we want to bring a new generation of talent to
the digital gaming industry.
In Denmark there are no specific degrees in games or/and game art and design set up by the Ministry of
Education or Ministry of Culture. However, having said that there are a number of universities and
educational establishments which have digital games in some form on the agenda. Some examples
include:
IT-University of Copenhagen (IT-C). Offers a number of Masters courses on computer games related
topics – including game analysis, methodology and design. www.it-c.dk
TRUEMAX. A private 3D computer graphics and animation school – offering advanced courses, and a 3year “3D Visual Artist” education. www.truemax.dk
Copenhagen Polytechnic. Courses in 3D animation/graphics. www.kts.dk
The Animation Workshop (Viborg). Among others a 3 year bachelor degree in character animation as
well as programming. Focuses on storyboarding 2D and 3D character animation. www.animwork.dk
Aalborg Universitet Esbjerg. Bachelor of Science in Medialogi.
www.cs.aue.auc.dk/educations/studyplans/medialogi.pdf
In contrast to the Danish situation, Scotland, France and England have specific game degree programmes.
Also, in the U.S. more and more schools are offering game development programs/degrees in order to
respond to industry demands. In Scotland, Abertay University has offered degrees in computer games
since 1994 (the first in Britain). Abertay now has ten applicants for every place on the course and
approximately 90 computer-games graduates a year.16 Other examples include a BSc-degree in Computer
Games Technology in Manchester and a MA course in Computer Games Studies in NewCastle – both
recently established. It is interesting to note that in the UK - one of the most successful game industries in
Europe – there exists a strong relationship between the game development industry and educational
organisations/universities. Scotland now has 13 computer games development companies and just over
half are in Dundee, where Abertay University offer degrees in computer games. The game industry and
associated digital companies employ some 1,500 people in and around Dundee.
14
15
16
Børsen. Ny actionhelt i Hitmans fodspor. Peter Nyholm. 25 March 2003
Competitiveness analysis of the UK games software sector. Spectrum Strategy Consultants. 2002.
The Economist, 2 January 2003. Game on: Lessons in game theory from Scotland’s new cluster.
Digital Games – a Danish Perspective
Page 29
The benefits of a strong relationships between education/universities and the industry in the UK is further
highlighted by Andrew Senior, British Council at a conference hosted by the Danish Trade Council in
Copenhagen on 28 April 2003: “No doubt, one of the great success factors of UK exporting culture is the
strong relationships between educational system and the industry”.
The great focus on the talent of tomorrow in the UK is also demonstrated by an initiative by TIGA (UK
Game Developer Association) which has started a Education Special Interest Group (EduSIG), existing of
experts from both the industry and educational organisations to discuss the sets of competencies and skills
in games development mapped out with the help of TIGA members.17 To the knowledge of MEDIA Desk
Denmark, such a first-stage clarification of the key roles, skills and competencies in the game industry in
Denmark – in collaboration with both the industry, educational organisations and Ministery of Culture
and/or Ministry for Education has not been carried out in Denmark.
8.2 Research & Academia
Digital games, like other media, have taken some time to register at the academic level. However, given
that digital games are as entrenched in today’s youth culture as movie or tv, and are likely to become “the
most favoured” entertainment media, it is a research area which cannot be overlooked. At present
academic departments involved with digital game research are emerging worldwide and an increasing
number of academic conferences is taking place worldwide. Examples of research initiatives/networks in
Denmark in respect of digital games include:
IT-University of Copenhagen. IT-C has four research departments. One of them is the Department of
Digital Aesthetics and Communication (DiAC), which are concerned with aesthetic, cultural, social and
communicative aspects of IT-phenomena. One of DiAC’s research focus areas are Computer Games. In
spring 2003 the Center for Computer Games Research was founded in order to strengthen and publicise
reseach in the Computer Game area. A declared goal of the Center is to promote discussions and
encounters between researchers, industry and the gaming community. The Center will be hosting a
number of guest lectures by international game theorists and designers. The researchers of the Center also
teach Masters courses on computer games related topics – including game analysis, methodology and
design at IT-C. www.it-c.dk
The Centre for Advanced Visualisation and Interaction (CAVI). (Part of the University of Aarhus).
CAVI’s objective is to disseminate knowledge and use of new visualisation and interaction techniques –
both within industry and academic research. www.cavi.alexandra.dk/
UNI•C. UNI•C is Denmark´s IT-Centre for Education and Research. It is based in Copenhagen, Lyngby
and Aarhus and have a staff of approximately 300. UNI•C is the Danish Ministry for Education´s “IT Front
Runner". The primary strategy for UNI•C is to deliver nationwide IT-services to all Danish schools and
institutions of higher education. Thus, within the last 4-5 years, UNI•C worked extensively on giving
Danish schools access to the internet as well as teaching them best practice on how to use the net for
pedagogical and administrative purposes. Today almost every Danish school is on the internet and
understands how to use it too. www.uni-c.dk
Learning Lab Denmark (LLD). LLD is based at Danish Pedagogical University, and is a non-traditional
research and development unit, employing 60 people. LLD’s vision is to focus on and expand public
awareness of the role of learning in our collective transition to the knowledge society. LLD aims to do this
by creating new paths of research in close dialogue with experimental practice. In short, LLD research in
how to learn and play at the same time. LLD has developed the edutainment game “BrainBuilders” aimed
at upper secondary school. www.lld.dk
17
www.tiga.org.uk/news/index.html.
Digital Games – a Danish Perspective
Page 30
Spilforskning. Spilforskning is a research network aimed at strengthing basic research in relation to new
forms of fiction/storytelling that have emerged on the basis of digital technology. A special focus is on
digital games. The research network is supported by Danish Research Council for the Humanities (Statens
Humanistiske Forskningsråd). www.spilforskning.dk
Examples of academia/research involved in digital games internationally:
DiGRA – Digital Games Research Association is a new international association of computer game
researchers established in 2002. DiGRA it is a non-profit, international association dedicated to the study of
digital games. Also, it is a network of academics and practitioners whose work focuses on digital games
and associated activities. Focus technologies of the association include (but are not restricted to) existing
types of computer and video games, online games, arcade games, games on handheld and mobile devices
and games delivered through digital television or other forms of interactive technology. The association
promotes collaboration between academic and other research institutions, as well as with commercial
organisations, trade associations, independent members of the games industry and policy makers. Simon
Egenfeldt-Nielsen, graduate student (for PhD) from Denmark is a board member. www.digra.org/
Game Studies. An international academic/scholarly journal on computer games (launched in 2001).
Articles focus on aesthetic, cultural and communicative aspects of computer games. It is web-published
several times a year at: www.gamestudies.org .
Game Culture. Resource for academics, developers, gamers and others interested in the significance of
computer games as a cultural phenomenon. Includes information on news, journal articles, conferences,
mailing lists and related resources. www.game-culture.com
Digiplay Initiative. Research project on computer games, gamers and the gaming industry. The site has
an extensive bibliography of print and online game research. Some news, links, events, own publications.
www.digiplay.org.uk
Game Research. Offers news and research information on the development and social impact of
computer games. www.game-research.com
IGDA Academic Summit. A conference to foster the research and study of video games. Further
information: www.gdconf.com/conference/academicsummit.htm
8.3 MEDIA training
The MEDIA programme of the European Commission supports continuous training in the audiovisual
industry.
Support is available for training organisations/establishments setting up an international training activity in
the field of new media. Also Danish organisations can avail themselves of this opportunity. The MEDIA
programme supports such activities with up to 50-60% of the costs. Both universities, private
organisations and semi-private consortia can apply. One of the criteria is that minimum 80 percent of the
participants/students must be non-national (non-Danish).
In the field of “new media” both short and long term training programmes are available – ranging from
training in visual effects to interactive scriptwriting as listed in table 8.1. Further information on each
training activity is available from www.europa.eu.int/comm/avpolicy/media/forma_en.html or
www.mediadesk.dk.
Digital Games – a Danish Perspective
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Danish IT-C is a participating partner in French “TRAM”, which offers the long term Master Programme:
EMMDIS and a number of 3-days seminars on Digital Management. The Animation Workshop in Viborg is
part of “European Training Network for Animation” based in Germany, and one of the courses offered are
taking place in Viborg.
Table 8.1 MEDIA Training activities
Title of training activity
Academy of Converging Media
EAM - European Animation Masterclass
EMMDIS - Management of Digital Interactive Services
European Training Network for Animation
EDC: Multi Platform
EDC: Itv & future media
European Film Academy Master Class
European Master in Visual Effects
ID3 Program
Interactive Media for Children
ITAP
ITHAC II / La Femis
Digital Management
Multimedia Master
Sagasnet
SAGAs Writing Interactive Fiction
SIAM 3D
Workshop on New Cinema
X-Melina
Digital Games – a Danish Perspective
Website
www.academy-of-converging-media.com
www.fam-halle.de.vu
www.ina-tram.com
www.cartoon-media.be
www.media-academie.nl
www.media-academie.nl
www.europeanfilmacademy.org
www.iev.info
www.ied.it
www.caid.gr
www.ulusofona.pt/itap2003
www.femis.fr
www.ina-tram.com
www.mediamaster.org
www.sagasnet.de
www.sagas.de
www.imcad.com
www.comunicazione.lazio.it
www.conceptum.gr
Page 32
9. Festivals & Conferences
MILIA 2003
MILIA is a digital and interactive content market – and is held annually in Cannes since 1994. In 2003 – for
first time – it took place alongside the international TV-market called MIP-TV also held annually in Cannes
since 1963. This international trade event is dedicated to digital content and interactive entertainment for
all platforms. MILIA exists of a exhibition part (Content Villages) and a conference part (Business Forums).
Those Business Forum were divided as follows in 2003:
1. Mobile entertainment business forum
2. Enhanced and interactive TV business forum (discuss the impact Enhanced TV and Cross Media
Programming on Traditional TV Programming
3. Broadband, internet business forum
How to attend MILIA? “The Marketplace” provides European producers and distributors access and
exhibition facilities to the major markets and festivals at beneficial rates. The Marketplace is supported by
the European Union’s MEDIA Programme. www.marketplace-events.com / www.milia.com
Game Developers World 2003
Game Developers World took place from 8-10 May in Copenhagen. This conference was dedicated
specifically to the art of making great games. GDW2003 was held alongside 3D Festival Expo &
Conference, an annual creative event dedicated to 3D animation and digital visual effects. Also held at 3D
Festival was the international 3D Awards – the industry’s most coveted set of awards that included two
categories for game development.
According to the organizers the background for GDW2003 was that many of the top gaming titles are
increasingly originating from Europe, and that they found that the European game development
community lack a single creative meeting place where they can convene once a year to share their work,
experiences and celebrate their achievements. www.3Dfestival.dk / www.gd-world.com
E3 2003
E3 – held in Los Angeles for its 9th year - 14-16 May 2003. E3 is the premier US trade show for the
interactive leisure software industry. Here buyers, sellers and developers are brought together to conduct
business. New titles are announced and deals are made. Three days of exhibition, through-provoking
workshops and seminars. www.e3expo.com
1st Annual ELSPA Games Summit
ELSPA (The Entertainment and Leisure Software Publishers Association) Games Summit will be held for the
first time from the 17-18 June 2003 in London. On the 16 June – 2 x half-day workshops will be held:
“Negotiating Games Publishing Deals” and ”Creating and Acquiring Rights for Computer Games”.
www.elspa.com
Edinburg International Games Festival 2003
The cultural festival in Edinburgh is for the first time celebrating computer and video games alongside
theatre, TV, books and Cinema from 18-19th August 2003. The aim is to get the talented individuals that
drive the innovation and creativity of the interactive entertainment industry to achieve the recognition,
commendation and forum it deserves. The EIGF will give the industry a chance to celebrate its evolution
and creativity and it will provide a platform for the sharing of ideas, amongst developers, publishers and all
parts of the industry. A key focus of the inaugural 2 day event will be the interface between games and
other media, in particular film, TV and music. The Festival is supported by both developer’s and publisher’s
trade bodies: TIGA and ELSPA, in addition to the Edinburgh Film Festival and Scottish Enterprise. Tom
Stone, Head of LEGO Interactive (UK) is chairman of the EIGF. www.eigf.co.uk
Digital Games – a Danish Perspective
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Game Developers Conference 2004
For the 18th time The Game Developers Conference will take place in San Jose, USA from the 22-26 March
2004. The conference provides an independent forum for expert developers from around the world to
share ideas, build skills, and learn about the latest tools and technologies. Attendees include: game
designers, artists, animators, programmers, producers, sound designers, testers, audio engineers,
publishers and level designers. www.gdconf.com
NEW games market in Cannes
REED MIDEM, the company behind MILIA, MIPTV, MIPCOM and MIDEM, has announced its intention to
launch a games festival event in Cannes in the coming year. Paul Zilk, CEO of REED MIDEM, said at his
opening speech at MILIA 2003 end of March: “This will be a Europe-based event for the global games
business. It will be high profile from a media standpoint, and it will drive visibility and consumer awareness
of games”. 18 Further announcement will be made end of May 2003.
Other conferences:
A whole range of conferences and festivals are held worldwide. For a full events listing visit the following
links: www.screendigest.com, www.elspa.com, www.igda.com
18
MIP TV 2003 News, #4, 27 March 2003, p. 8.
Digital Games – a Danish Perspective
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10. Political level Denmark/Nordic/EU
Digital games are as entrenched in today’s youth culture as film or TV, and as games evolve to become the
mass-media phenomena movies are, they will by definition become a culturally important influential factor.
Games will play an increasingly important role in our society - one in which games will change the way
children, young people and adults live, work and play. However, the question is who is going to rule the
homes in future? European content or American/Asian content?
During the Danish EU Presidency in 2002 one of the focus areas of discussing presented by the Danish
Ministry of Culture were:
“How can we in Europe improve the conditions for content production for
interactive media – given their growing cultural and commercial importance.”
The topic was discussed at a seminar of experts appointed by the EU Member States, which took place in
Copenhagen on 21 – 23 July 2002. Case studies presented ranged from computer games to new forms of
co-operation between TV and interactive content producers and perspectives for 3-G mobile interactive
content. The result of the discussions were that the area of interactive media – including games – was an
important area to develop at the European level, because as it evolves it will be a culturally important
influential factor.
In addition to the strategy of developing interactive media/games at the European level, the Danish
Minister of Culture, proclaimed in November 2002 that there were also plans for initiatives at the national
level in Denmark. 19 However, if the Danish game development sector had hoped for some kind of subsidy
scheme/fund - that was stopped at the political level - as it was decided that interactive media/digital
games is outside of public interest for the time being. 20 In contrast there is a broad general agreement at
the political level about supporting the film industry and a range of other creative industries in Denmark.
At the Nordic level, the Nordic Council of Ministers has discussed various initiatives in respect of supporting
Nordic digital culture content, including the establishment of a large fund the aim of which should be to
support “Nordic media culture” – in a broad sense. In 2002 the Finnish Research & Finance company, CIM
prepared a memorandum, the objective of which was: “to evaluate the feasibility of funding a separate
Investment Fund for the digital content industries in the Nordic Countries”. In March 2003 the Nordic
Council published the report: “Nordic media culture – actors and practices”.
The European Commission is currently initiating the design of the new generation of programmes for the
audio-visual sector (successor of MEDIA) which will run from 2007-2013. The Commission will present the
new programmes at the end of 2003. An essential step in the preparation of the new programme is the
consultation of the stakeholders and the public from all participating countries. Seven support areas have
been identified within the audiovisual industry, and MEDIA Desk Denmark has been appointed to organise
the consultation/expert meeting in respect to “Pilot Projects” (including support mechanisms of new
technologies, multimedia and digital cinema). An interesting opportunity here is to further focus on
interactive fiction/digital games.
As the mass market for digital games develops – focus will be placed on the ability to meet the users’
wishes and satisfy their emotional requirements, including the need for storytelling and non-violent games.
Themes and genres will become broader and more sophisticated. Hence, future competition is believed to
move towards talent and creativity. In this field also Denmark has a chance to lead the way by developing
new games and genres. Many of the globally attractive games are actually made by talented independent
game developers in Denmark and Europe. However, if this sector is to flourish, including having room for
experiments and developing creative original content and urgent need of support is required.
19
20
Danish Minister of Culture, Brian Mikkelsen. Press conference 11 November 2002
BT. Flere danske film i tv. Af Jytte Kjærgaard. 5 November 2002
Digital Games – a Danish Perspective
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As mentioned in the paragraphs above both at a Danish, Nordic and European political level the intentions
to somehow support interactive fiction/digital games exist. It is believed that digital games which reflect
Danish/European values and stories are needed, and the talent and potential to progress this work are
there. However, further focus and money to be allocated to this area is yet to be seen.
“Denmark/Europe have the stories, the talent and the developers and the opportunity to
enter a very lucrative market. What we don’t have to a sufficient degree is a sympathetic
investment environment for small but talented content developers. So here is a task for
cultural policy. I would recommend that European decision-makers look into the policies of
investment in Japan and in USA, where the sources of finance are in many ways similar to
those of the film industry.”
Peter Molyneux, CEO, Lionhead Studios, UK
EU-conference in Copenhagen 22 July 2002
Digital Games – a Danish Perspective
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11. A flourishing Danish industry?
So what will it take to get a flourishing “digital game-industry” in Denmark? Based on wishes and ideas
presented by a range of people interested in this sector and summing up knowledge gathered from putting
this report together the following opportunities arise. In short: the Danish digital game sector has an
urgent need for funding for development, marketing and expansion.
Scenario I: Automatic Scheme. Establishing an automatic support scheme – where a project will
automatically obtain Danish funding on the condition that the project is selected for EU’s MEDIA Plus
Development support scheme. How? A Danish independent company can apply for max. EUR 50.000 (DKK
375.000) in development support from the MEDIA Plus Programme. Projects supported are characterised
by a combination of artistic freedom, creativity, innovation, as well as having cultural and linguistic
diversity. In order to apply for MEDIA support the applicant has to demonstrate matching funding at least
equivalent to the amount applied for and the project has to have international potential. If the Danish
Automatic Scheme match the MEDIA support, this would give the developers in Denmark max. DKK
750.000 (EUR 100.000) in support for the development of a project, in addition to the company’s own
investment. This funding would give the developers “space” to experiment and create new type and
genres of games. See section 6.6 for further information on MEDIA Development support. Estimated
budget of an “Automatic Scheme” over two years (2004/2005) excluding administrative costs - if for
instance 8 projects receive MEDIA support of EUR 50.000 amounts to approximately: DKK 3 million (EUR
410.000).
In the MEDIA Programme the time from applying to the money is made available, if selected, will be on
average 6 months. Due to this timeframe and given the work load for the developer in terms of
administrative work, it is important that a Danish Automatic Scheme is kept to a minimum in respect of
administrative requirements.
Scenario II: A Digital Games semi-public investment fund. The industry needs investment and
capital to fund game development and production. Hence, an investment fund should be established
combining public venture funding with private investors and management to provide venture capital for the
Danish digital game industry. However, it is also important to note that the conditions on which the entire
venture capital sector works is very straight forward business where profit is everything and Danish values,
cultural or social interest mean less. Although Denmark has public sector venture capitalists such as
“Vækstfonden” and “Teknologisk Innovation” those organisations are extremely focused on return on
investments. During 2001-2002 Vækstfonden21, in conjunction with a number of consortia tried to establish
a Film Investment Fund in Denmark. DKK 100 million (EUR 15.5m) was made available from Vækstfonden
and a consortium was then to find matching private venture capital. One of the consortia were approved
for DKK 4 million (EUR 537.000) from the EIF22. Unfortunately, at the end of the day none of the consortia
could provide the private venture capital – and the initiative was therefore closed down. A semi-public
investment fund focusing on digital games would not only be of great benefit to the Danish development
community, but also be a great initiative for the private investment sector to become more familiar with
creative industries.
Scenario III: Tax credits. In the UK tax credits are available for the games industry. Here you can claim
up to 150% back on Research & Development costs. Also Canada operates with a number of tax credit
schemes - for instance a 35% tax credit rebate of approved labour expenditures.
Scenario IV: The Trade Council. The Danish Trade Council is the governmental export and investment
promotion organisation under the Ministry of Foreign Affairs. The organisation offer companies export
support and individual advice in respect to their international activities. The Trade Council can set up a
special interest group focusing on digital games and identify the special needs of those companies.
21
22
See section 6.5 for further information on ”Vækstfonden”.
See section 6.6 for further information on the European Investment Fund
Digital Games – a Danish Perspective
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Scenario V: Export credits for digital games. The Danish Export Credit Fund could develop a model in
order to improve and exploit export opportunities of digital games. The Danish Export Credit Fund is
already supporting and servicing the Danish film industry.
Scenario VI: New Media Fund. The area of support is an essential factor in the long term dynamism of
the game market. If this approach is taken, it would be worthwhile examining international models of best
practice – for instance Canada has established a number of public funds in the area of creative interactive
media. A New Media Fund could administer: research & development grants, production grants,
distribution & marketing grants. Furthermore, such a fund could act as a knowledge center; gathering,
disseminating and structuring knowledge. To develop the industry – the budget of such a fund would need
to be at least DKK 100 million (EUR 13.4 million) annually. This amount has previously been indicated by
the Danish IT-Industry Association.23 In comparison today the Danish Film Institute’s total budget is DKK
350 million per year of which DKK 150 million (EUR 21.5 million) per year is for development and
production of feature films.
Scenario VII: Nordic New Media Fund. One could argue that a national support model no longer
serves the needs of the interactive media industry because of the small domestic markets. Rather than a
national fund – a Nordic fund should be established. Either a public subsidy fund or/and a semi-public
investment fund providing especially seed capital. The Nordic Council of Ministers is currently in intense
discussion of establishing a large fund the aim of which will be to support “Nordic Media Culture” – in the
broad sense.
Skills development / Knowledge
An essential element in all the above-mentioned scenarios are skills development and knowledge.
Looking at the UK – the most successful European game industry – a number of research and mapping
exercises have been done in respect of the UK game industry. Recently, a competitiveness study of the UK
Games Industry was carried out and in doing this, opportunities for the UK development community were
identified24. A similar report for Denmark would be an interesting read, and a valuable document if any of
the above-mentioned scenarios were to be considered.
A need for further focus on the link between the game industry and educational system/universities is
needed. Mapping and clarification of the sets of competencies and skills in game development in Denmark
– and the requirements of the future - could be a valuable area to look into. As the emphasis on high
production values and quantities of artwork in future games arise – the need for both artists and
management skills are needed. Again the UK is in front, as they have already established a group of
experts from both the industry and educational organisations to focus on the talent of tomorrow. Without
this type of knowledge at hand, how can the game development industry expand and flourish further in
Denmark – and how can future generations of appropriately qualified recruits be produced?
Above all, the aim should be to stimulate and encourage Denmark’s talent of today and tomorrow.
Digital kulturpolitik. IT-Brancheforeningens forslag til politiske initiativer for at fremme udvikling og udbud af
dansk kultur og underholdning I det digitale univers. IT-Brancheforeningen. 2002.
24
Competitiveness analysis of the UK games software sector. Spectrum Strategy Consultants. 2001.
23
Digital Games – a Danish Perspective
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12. Online games
Online games can be played through the Internet via PCs and video game consoles (i.e. PlayStation 2,
GameCube, Xbox). Furthermore, online games can be played through wireless devices (i.e. mobile phones)
or interactive television set-top boxes. Below is written a brief insight into some of these areas.
12.1 PC and consoles
On-line games through the internet via PC can be played as an alone activity or between a number of
gamers via the internet. Today, there are more than 4,000 online gaming internet portals. EverQuest, one
of the greatest online game successes, has more than 375,000 paying subscriptions. 25
The income can be single or in combination: advertisements, sponsorship, subscription, pay per game or
one-off fees.
In respect of online gaming via a console, all three next-generation gaming consoles (PlayStation 2, Xbox
and GameCube) are now online – also in Europe. As of March 2003 in the U.S. more than 850,000 people
are equipped for online gaming via their consoles. According to Microsoft peak online gaming period is
20:00-22:00, similar to television prime time.26
At the 2003 Game Developers Conference Electronic Art’s Gordon Walton, the executvie producer of The
Sims Online explained: “The biggest problem developing online games is they operate in a fundamentally
different paradigm to offline games. The more success you get with an online game, the bigger drain it
becomes on the publisher’s rescources. One reason for this is that publishers expect a 65-85 per cent
profit on gross sales for successful games. The most successful online games only make 30-50 per cent,
however, because of their higher development and ongoing maintenance costs.” 27
IGDA’s Online Games White Paper – 1st edition (Feb. 2002). Focus is on online games played
through the Internet via PCs and video game consoles. The White Paper contain amongst others the
following information: online games market statistics, business model descriptions, technology summaries
and a comprehensive list of online publishers. An extremely valuable and interesting read if one wants to
understand more on this topic. Can be downloaded free of charge from:
www.igda.org/online/online_whitepaper.php. In February 2003 IGDA published Online Games White Paper
- 2nd edition, however, you must be registered with the IGDA (paid membership) to download the 2 nd
edition.
Did you know?
In Korea online games is a huge sport. More than 1000 people make their living from playing online games
and there are two TV stations which only broadcast game events.
Approximately 75.000 Danish people play “Counter-strike” - a first person shooter game - on the internet.
Team Magic is part of the Danish E-sports Union, which work for making computer games or ”e-sport” into
a recognized sport. Worldwide there are currently 13 million on-line gamers, however, it is predicted that
in 2005 this figure will be more than 100 million, according to the American research institute
Datamonitor.28
25
26
27
28
Kofler & Fonnesbech, The Interactive culture industry. For the Danish Ministry of Culture. 4 July 2002, p. 28.
Screendigest. March 2003.
EDGE. Networking is the message at GDC. p. 8. May 2003.
www.team-magic.org / www.esports-union.dk / Krigen på nette. Claus Sonne. Ud & Se. Maj 2003.
Digital Games – a Danish Perspective
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12.2 Mobile gaming
Said about mobile gaming at MILIA’s Mobile Entertainment conference end of March 2003:
“The mobile market in Europe is worth euro 50 billion in revenue – and one third of that is
entertainment! Furthermore, in this segment there seems to be evidence of successful
business opportunities. Mobile entertainment services covers a broad range of products –
from logos, ring tones, voice greetings, infotainment to games. One out of three mobile users
are age 14-35 and therefore games become extremely important in future! Today 30% of
Vodafone’s revenue is from Japanese content providers. Hence, Europe content providers
should hurry up if they want to enter this market! And note large existing game developers
are already working closely with the mobile sector..….. Different payment methods for mobile
gaming include: pay per usage, pay per level, pay per feature, ordered or received data, or
subscribtion fees.”
Guy Laurence, CEO Vodafone Global Content Services Ltd.
“From a development perspective, the mobile gaming market is undergoing substantial
changes. The increasing variety and complexity of handsets are bringing the dynamics ever
closer to the console games industry. Consequently, the need for brand names, marketing
resource and product development and testing expertise will bring about further consolidation
as the market develops.”29
According to Strategy Analytics.
“A survey in Germany by Siemens in 2002 showed that: 23% of people play on their mobile
every day, 32% 2-3 times per week, and 12% once and a while. And when consumers were
asked why they were not playing more, 64% answered “no time”. 71% of mobile users are
not informed about how to use a mobile for gaming. Hence, the first step is to educate the
market by offering free downloads.”
Domenica Dinkheller, Director of Mobile Entertainment, Siemens AG, Germany.
Mobile Entertainment in Europe – mGain. The European Commission, through its IST programme, is
funding this EUR 1 million, 18-month research project. The project is set to culminate in early-2004 in a
series of recommendations for regulating the mobile entertainment industry. A consortium of universities
from Norway, Finland, Sweden and the UK is set up to conduct the research - mGain. The mGain project
aims to study mobile entertainment technologies, concept and culture together in order to gain a
comprehensive picture. mGain will study mobile entertainment genres, consumer demographics, emerging
mobile entertainment culture – in order to understand the factors that make successful mobile
entertainment products. The study also looks at relevant actors in the mobile entertainment market
including operators, content developers and publishers, hardware producers, retailers and consumers. An
overview of the research and a number of reports are available from this link:
www.knowledge.hut.fi/projects/mgain/publications.html. The report: “Current State of the Art”, from 31
January 2003 is an interesting read and can be downloaded free of charge from:
http://knowledge.hut.fi/projects/mgain/MGAIN-wp3-d311-delivered2.pdf
Another report from mGain is due on August 31, 2003 “Mobile Entertainment”. Furthermore, the report(s)
have excellent lists of references if one is interested in researching this sector further. www.mgain.net
Website of Mobile Entertainment Forum (MEF). MEF is a global trade association representing all
participants in the mobile entertainment value chain, including entertainment content
developers/providers. www.mobileentertainmentforum.org
29
Strategy Analytics at MILIA 2003
Digital Games – a Danish Perspective
Page 40
12.3 Interactive TV gaming
So far there are no specialised television game-sites in DK. This is in contrast to for instance the UK
where BskyB runs the games channel “Gamestar”, and in France “Game One” launched by Canal Plus and
taken over by Infogrames/Antari.
At MILIA 2003, Lesley MacKenzie director of channels and operations at BskyB said that “the most
popular game on BskyB’s games channel Gamestar in the UK is Tetris. Tetris has generated 6.5 million
paid for plays and $3.5m in revenue over a two-year-period”! And she added: “Interactive television is
already an integral part of today’s viewing experience. The statistics show significant growth in gaming,
voting, messaging and betting. There is no question that the last three years have been evolutionary and
experimental. Some things have been more successful than others, but we now have a much clearer
understanding of what the consumer wants. Also, the cost of creating interactive TV has come down. 30
At a presentation at Louiz in January 2003, Torben Thune, Visionik Interactive TV pointed out the limited
opportunities for interactive TV gaming in the Danish market as of yet: “The biggest operator of
interactive TV in Europe is “Sky”. “Sky” has so far sold 6 million set top boxes. In comparison TDC has so
far sold 50.000 set top boxes in Denmark and Viasat has sold 600.000 set top boxes in Scandinavia”.
Said about Interactive TV gaming opportunities at MILIA 2003:
“Interactive TV has become a reality for 31 million European households. Strategy Analytics research
shows that enhanced TV and games applications will dominate the $1.4 billion interactive TV market
in Europe in 2008”.
Source: Strategy Analytics.
“By 2008 216 million homes worldwide will access the internet using high-speed, always-on
connections. Many will use them to access and pay for entertainment content and services”.
Source: Strategy Analytics.
“With just a broadband connection, a set-top box and a TV, users can play video games without a
console”.
Source: Thomas Schmidt, VP of Strategy and Development for G-Cluset
“12 million homes have broadband access in Europe now! Korea is the leading broadband country in
the world with 5,5 million users.”
Source: www.milia.com/keynotes
“By 2008 216 million homes worldwide will access the internet using high-speed, always-on
connections. Many will use them to access and pay for entertainment content and services”.
Source: Strategy Analytics.
“In Denmark broadband internet household penetration as of end 2002 is 18.2%, the second highest
in Europe. No. one is Belgium with 20.2%, the average in Western Europe is 7,5% and in North
America the figure is 18,3%.”
Source: Strategy Analytics Global Broadband Practice. MILIA 2003
30
MIP TV 2003 News #4, 27 March 2003, p. 9.
Digital Games – a Danish Perspective
Page 41
Annex 1
References and further reading
DigiCult Report. Technological Landscapes for Tomorrow’s Cultural Economy. Unlocking the Value of Cultural Heritage. Executive
Summary. European Commission. Luxembourg: Office for Official Publications of The European Commission, 2002.
Digital kulturpolitik. IT-Brancheforeningens forslag til politiske initiativer for at fremme udvikling og udbud af dansk kultur og
underholdning I det digitale univers. IT-Brancheforeningen. 2002.
Establishment of a Nordic Fund for Digital Content. 2002. CIM Finance & Research Ltd.
Competitiveness analysis of the UK games software sector. Spectrum Strategy Consultants. 2001.
Game Plan: The Next Level – A Blueprint for Growing the Victorian Computer Game Industry. Melbourne: Government of Victoria,
2001.
IGDA Online Games White Paper 2002. Created by the IGDA Online Games Committee. Alex Jarett & Jon Estanislao.
Interactive Leisure Software. Global market assessment and forecasts to 2006. Screendigest. 2003.
Multimedia and New Technologies. 2002 Yearbook. Volume 4. European Audiovisual Observatory. 2002.
Mobile Entertainment in Europe. Current State of the Art. MGAIN / IST European Commission. February 2003.
Egenfeldt-Nielsen, Simon & Smith, Jonas H.. Den Digitale leg. 2000. Copenhagen: Hans Reitzels Forlag.
Hansen, Flemming; Rasmussen, Jeanette; Martensen, Anne. Children – consumption, Advertising and Media. Samfundslitteratur.
2002.
Hansen, Flemming; Martensen; Anne, Halling, Jens; Bach Lauritsen, Gitte; Nielsen, Jens; Puggard, Berit. Børns opvækst som
forbrugere. Samfundslitteratur. 2002.
Jennings, Pamela. New Media Arts, New Funding Models. Report prepared for Creativity & Culture. New York: The Rockefeller
Foundation, 2001. www.digital-bauhaus.com
Kofler, Peter and Fonnesbech, Christian. The Interactive culture industry. For the Danish Ministry of Culture. 4 July 2002.
LE DIBERDER et F. LE DIBERDER, La création de jeux vidéo en France en 2001, Développement cutlurel, Bulletin du Département des
études et de la prspective, Ministére de la culture et de la Communication, Paris, n 139, juillet 2002.
www.culture.fr/culture/editions/r-devc/dc139.pdf
Mäkelä, Tapio. Cultural and social innovation in new media production in the Nordic region. For the Nordic Council of Ministers. 27
August 2002.
Martevo, Miriam & Tarkka, Minna. Nordic media culture – actors and practices. For the Nordic Council of Ministers. M-cult. 2003.
Additionally, more than 60 website references are listed throughout this document.
Digital Games – a Danish Perspective
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Annex 2
25 leading independent videogame developers in Europe
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Company
Rare Ltd (2)
Pysgnosis Ltd (3)
Phenomedia AG
Lionhead Studios Ltd
Kaboom Developments Ltd
Kalisto Entertainmnet (4)
Digital Illusions
Runecraft Ltd (5)
Blitz Games Ltd
Core Design Ltd
Gameloft S.A.
Kuju Entertainment Ltd
Blue Byte Software GmbH (est.)
Funcom Oslo
Argonaut Games PLC
Rage Games Ltd.
Warthog Games PLC
Silicon Dreams Studios Ltd.
Guildsoft Ltd
Rebellion Developments Ltd.
Team 17 Software Ltd.
VIS Entertainment PLC
Attention to Detail Ltd
Eden Studios
IO Interactive A/S
Country
GB
GB
DE
GB
GB
FR
SE
GB
GB
GB
FR
GB
DE
NO
GB
GB
GB
GB
GB
GB
GB
GB
GB
GB
DK
2000
operating revenue
in EUR thousand
103 404
36 177
18 900
484
12 562
3 240
4 788
6 010
6 116
8 772
2 981
5 289
8 200
7 181
7 094
6 680
6 105
5 979
5 083
2 685
4 269
4 206
3 047
849
2001
operating revenue
in EUR thousand
47 825
14 747
12 000
11 000
9 746
9 033
7 897
7 668
7 500
7 159
4 921
4 393
3 911
3 905
Source: Multimedia and New Technologies. 2002 Yearbook. Volume 4. Page 43. European Audiovisual Observatory. 2002.
Notes:
(1) Does not include the development activities of publishing companies
(2) Nintendo acquired a 38% stake in Rare Ltd in March 2002
(3) Psygnosis was taken over by Sony Computer Entertainment Europe in March 1999
(4) Declared bankrupt in 2002
(5) 2001 on 15 monhts
Digital Games – a Danish Perspective
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Annex 3
15 leading publishers worldwide 2000-2001
Rank
1
Company
Sony (1)
Country
JP
Games activities (incl. hardware)
2
Nintendo (2)
JP
Total turnover
3
4
5
6
Electronic Arts
Activision
Konami (3)
Sega (4)
US
US
JP
JP
Consumer products
Total sales
7
8
9
10
11
12
13
14
15
Square
Infogrames Entertainment
Capcom
Take-Two Interactive
Ubi Soft Entertainment S.A. (5)
THQ Inc.
Namco
Enix (6)
Acclaim Entertainment Inc.
JP
FR
JP
US
FR
US
JP
JP
US
2000
operating revenue
in EUR thousand
2001
operating revenue in
EUR thousand
3 172,2
4 450,8
5 287,0
7 418,0
-
1 901,0
5 003,2
4 276,9
1 322,3
620,2
445,4
-
1 724,6
786,4
666,1
638,9
934,2
1 960,6
638,9
1 548,5
614,0
498,0
388,5
364,0
293,2
347,0
188,6
572,0
471,8
451,1
416,3
379,0
257,0
231,0
197,6
Source: Multimedia and New Technologies. 2002 Yearbook. Volume 4. Page 40. European Audiovisual Observatory. 2002.
(1) Sony reports game division revenues, but does not distinguish between hardware and software revenues. Observatory has
used the hypothesis that software represents 60% of the games activities turnover.
(2) Software sales only.
(3) Consumer software sales only.
(4) Sega’s consumer sales figure includes hardware sales. The company withdrew from the console hardware business in
January 2001
(5) 2001 operating revenue estimated on the basis of turnover data
(6) Company projection.
Note:
Not ranked: Microsoft. Microsoft division “Consumer Software, Services and Devices” includes the Xbox, MSN Internet access,
MSN network service, PC and online games, learning and productivity software, mobility and embedded systems. Revenues of
the division were (at 30 June): 1999: 1,19 billion USD; 2000: 1,63 billion USD; 2001: 1,95 billion USD and 2002: 3,59 billion
USD.
Digital Games – a Danish Perspective
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Annex 4
15 leading publishers in Europe 2000-2001
Rank
1
2
3
4
5
6
7
8
p.m.
9
10
11
12
13
14
15
Company
Infogrames Entertainment
Ubi Soft Entertainment SA
Titus Interactive
Eidos PLC
Cryo (1)
Virgin Interactive Entertainment Ltd
(2)
Codemasters Group Ltd
Vivendi Universal Interactive
Publishing
Havas Interactive Europe
Viviendi Universal Interactive
Publishing Ireland Ltd
Jowood Productions Software AG
Mindscape (UK) Ltd (3)
Mindscape France (3)
CDV Software Entertainment AG
Vivendi Universal Interactive
Publishing Ireland Ltd
Microids
Country
FR
FR
FR
GB
FR
GB
2000
operating revenue
in EUR thousand
521
331
177
237
70
81
2001
operating revenue
in EUR thousand
600
984
169
674
996
949
674
462
216
195
95
000
307
055
271
000
-
GB
FR
68 904
69 279
66 528
-
FR
IE
56 892
-
AT
GB
FR
DE
GB
16 634
29 304
13 677
24 499
42 610
26 000
-
FR
20 292
-
Source: Multimedia and New Technologies. 2002 Yearbook. Volume 4. European Audiovisual Observatory. 2002.
(1) Declared bankrupt in 2002
(2) Taken-over in 1999 by Titus Interactive
(3) In October 2001, Jean-Pierre Nordman acquired the International Division of The Learning Company from Gore Technology
Group and renamed it Mindscape.
Digital Games – a Danish Perspective
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Annex 5
About MEDIA
What is the MEDIA Programme?
MEDIA is a 5 year programme of the European Union to strengthen the competitiveness of the European
film, TV and new media industries and to increase international circulation of European audiovisual
product. MEDIA Plus commenced on 1 January 2001 and will run to 31 December 2005. With a budget of
EUROs 400 million MEDIA Plus supports:






project development (single/slate)
distribution of European audio-visual works
promotion of European audio-visual works
festivals of European audio-visual works
professional training (screenwriting, management and new technologies)
pilot projects
What is MEDIA Desk?
The MEDIA Desks are responsible for informing and advising the professionals in the film, tv and
multimedia sector about the audiovisual policies and programmes of the EU. A MEDIA Desk is located in
each of the countries participating in the MEDIA programme: Belgium, Denmark, Finland, France, Greece,
The Netherlands, Ireland, Italy, Luxembourg, Portugal, Spain, Sweden, United Kingdom, Germany, Austria,
Liechtenstein, Norway, Iceland, Poland, Latvia, Lithuania, Estonia, Czech Republic, Bulgaria, Slovenia,
Slovakia and Cyprus.
What does MEDIA offer?
Independent production and distribution companies can apply for development or distribution funding in
the form of grants and interest free loans. Financial assistance is available for training providers and
organisers of markets and festivals. Individuals may also benefit from subsidised places on training courses
and international markets.
Who can apply?
Practitioners in the audiovisual industry such as producers of film, television, animation, new media
companies, distribution and sales companies and also 'enabling' organisations such as training bodies or
film schools, promotional events or festival organisers.
How do I apply?
Deadlines for the various schemes run throughout the year. Contact MEDIA Desk for Guidelines and
application forms. Further information on the MEDIA Programme and a complete list of MEDIA Desk and
Antenna Offices: http://europa.eu.int/comm/avpolicy/mediapro/media_en.htm
Digital Games – a Danish Perspective
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