CCP annual revenues hit $66m, considers IPO

CEO Hilmar Petursson "wants to be ready" to go public as a matter of policy

EVE Online developer CCP Games generated $66 million in revenue last year, and is now considering an IPO.

According to a report on TechCrunch, CEO Hilmar Petursson believes that the release of DUST 514 and EVE's expansion into Asian territories will make 2012 the company's most successful year to date.

"We want to be ready for an IPO from a policy standpoint," Petursson said. "We're quite a substantial company, so we're thinking, 'Okay, what is the next step?'"

Revenue generated by EVE Online has grown every year since the game launched, at a compound rate of 53 per cent a year. EVE's lifetime revenue is around $300 million.

However, while the company revealed last year's revenue as $66 million, it would not give details of profits beyond acknowledging that it has, "very healthy margins."

EVE Online has around 400,000 subscribers, who are widely considered to be the most engaged MMO audience in the industry.

Last June, CCP angered its community after documents detailing the introduction of micro-transactions to EVE were leaked. EVE has been subscription-funded since launch, and the company was forced to apologise after thousands of veteran players started to walk away from the game.

In October, the company made 120 employees redundant, around 20 per cent of its entire workforce. A press release at the time indicated that the decision was a result of the crisis with EVE's community

"As we re-examine our outward relations, we are also taking time to re-evaluate our internal goals. In doing so, we have come to the conclusion that we are attempting too many things for a company our size. Developing EVE expansions, DUST 514 and [New MMO] World of Darkness has stretched our resources too thin."

"Rather than allowing this to persist, we have made the decision to sharpen our focus. Sadly, this means reducing our staff."

CCP's commitment to EVE Online's expansion was evidenced by the appointment of David Reid, Trion Worlds' former senior vice president, to the role of chief marketing officer last month. Reid stated that his goal was to bring, "the worlds of CCP to millions of gamers in 2012 and years to come."

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Latest comments (3)

Joshua Rose Executive Producer / Lead Designer, Storm Eagle Studios5 years ago
What they've done with this game is truly amazing. An entire galactic economy completely and one hundred percent fueled by the players. A game where the phrase 'anything goes' is as true as it sounds. If you've ever played, then I'm sure you know of the countless scams in Jita and other trade hubs around the Galaxy.

That being said, I can only imagine how much this universe will expand when they introduce full on station walking with DUST 514. This kind of interaction between an MMO and a FPS has never been done before (please correct me if I'm wrong) and it will be interesting to see how seamless the transition will be.

When they reduced their staff, I was impressed that they actively began seeking jobs for their newly redundant employees. That's the mark of a company dedicated to the industry and the people that have helped them bring EVE up over the years.
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Thomas Eidson Senior System Designer, Heatwave Interactive, Inc.5 years ago
I've studied Eve's economy for some time. While their economy does have heavy player participation, it is not 100% player driven. There are many artificial sinks (insurance, skill books, taxes, etc) that are not player controlled as well as faucets that are game mechanics (bounties, NPC goods, NPC loot).

A pure player economy would mean that the players controlled all aspects of the faucets and sinks.

What really concerns me is the Eve Galaxy is very limited, as far as solar systems that can be explored. Adding a large percentage of players (Reid says "millions of gamers", which only a million is 2.5 times more than their current population) would cause a serious load on their servers and greatly change the game itself. The scarcity of resources (planets can be depleted) and market competition would skyrocket, due to there only being roughly 11000 (6000 systems in the galaxy; 5000 in wormholes? it could be 2000, I forget) solar systems (ratio of players per system would rise from roughly 40 to 140, if you add only one million players).

I have serious doubts Eve Online would be able to host that many players without requiring an expansion of the game, server redesign, and hardware required. I've attended a session where CCP explained their node based database architecture and it is certain that will help, though the impact would be a negative shock to the game with a huge influx of players.

Edited 1 times. Last edit by Thomas Eidson on 23rd February 2012 5:14pm

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James Prendergast Research Chemist 5 years ago
Maybe it's just my lack of experience in dealing with directors and boards and whatnot.... but i can't imagine that "going public" would be a good idea for a company like CCP or a game like Eve Online. Seems like too much of a conflict of interests with regards to what each entity desires.
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