Feature: Lack Of Business Acumen Holding Back Nordic Scene?

Author: by Staff

Nordic developers say their region has plenty of talent and passion, but an apparent lack of business acumen is holding back the region's "development scene" from becoming a true "games industry," say local developers in a new Gamasutra feature. Soren Lund, former producer for bankrupt Watchmen: The End Is Night developer Deadline Games describes the Nordic gaming industry as "Fragmented, naive, creative, careful, grassroots, passionate, and doomed." He clarifies, "Well, maybe not doomed, but severely in need of more courage, business acumen, and capital. I think [it's] absolutely right to call it a development scene and not an industry." Denmark-based Deadline collapsed after it was unable to find a publishing deal for its game Faith and a .45. Lund says that while creativity and passion is abundant among the region's developers, there are few that think of games development as a serious business. "There are many really creative people in the Nordic region who want to create games. The only trouble is that the games industry is still not an established industry here in Scandinavia, even though we have some very successful studios," he says. "It's still seen as a hobby [or] plaything among the public and not as a viable long-term career." He adds, "Couple that with a national mentality that is not typically entrepreneurial and risk-taking, and you'll find a region filled with grassroots developers who are running very small businesses on pure passion, [with] little ambition about creating viable, long-living businesses." But there are some studios that have been able to find commercial success in the region by focusing more on emerging platforms. Sweden's Outbreak Studios, which formed in 2007 and previously worked with now-defunct GRIN on a couple of console and PC releases, now focuses entirely on downloadable games for iPhone and other platforms. Finland's Housemarque, the studio behind the well-received Super Stardust HD, saw great success with that title on PlayStation Network. While the success of smaller studios is well and good, Lund wonders when the region will see more large studios like EA DICE, IO Interactive, and Remedy. "Since the success of a few indie [developers], it has suddenly become attractive to keep it small, 'unambitious,' and safe," Lund says. "The fact that some alternative distribution channels have emerged that allows for viable smaller revenue business models and new grant initiatives from the Nordic governments means that there are more small development studios trying their luck." He explains. "The negative aspect is that these small companies are extremely vulnerable to the slightest economic hardship. This creates a negative spiral where more companies will shut down causing investors to back off, causing more studios to shut down."