Company strategy for 2019-2021
The Company’s strategy assumes dynamic development of operations through three complementary pillars: publishing games from external suppliers, a studio creating its own productions and porting, i.e. a service for transferring games between various hardware platforms. As a result of this approach, the Company’s management assumes the implementation of a development strategy based on a diversified business model which minimizes operational risk:
- the publishing model, in which the Company has the greatest experience, ensures recurring revenues with a relatively low capital commitment and guarantees revenue stability both by releasing premieres and developing its own back-catalogue,
- the production model allows the Company to build its own portfolio of games and generate high margins on their sale and, over time, to reduce the share of content from external providers in revenues
- porting as a service is an additional source of high-margin revenue and builds the Company’s competitive advantage over other publishers in the market.
Company Mission
The Company’s mission is to take a leading position in the publishing market among entities originating from Central and Eastern Europe (CEE) by building a strong own brand and a commercially and artistically successful games portfolio. The company also wants to produce genre-oriented, ambitious and narratively rich games based on its own original ideas and on acquired licenses, and ultimately become a significant and industry-renowned development studio.
Company’s vision
The Company finances talented creators by supporting each stage of work on their unique games. Joint work equals joint success.
Company strategy
The implementation of the development strategy assumes, among other things, the achievement of the goals set out below for individual business areas.
Publishing model
The Company’s strategy with regard to publishing activities assumes:
- building a front catalogue consisting of a minimum of three multiplatform A/A+ titles released annually,
- conducting active activities leading to the acquisition of new games in developing markets such as: LATAM (Latin America), CIS (Commonwealth of Independent States), CEE (Central and Eastern Europe),
- expansion of the back catalogue and conversion of previously released titles to other hardware platforms,
- strengthening partnerships with Nintendo, Sony and Microsoft by placing new productions exclusively for particular platforms,
- taking a dominant position among publishers in the CEE and CIS regions, becoming an alternative to US and EU publishers,
- offering a full package of services for game developers, from marketing and PR, through digital and physical distribution, porting, consulting and localisation, to crowdfunding services.
The Issuer has further presented the list and characteristics of the games it plans to release in 2019 and 2020 in section 7.2 Description of the Issuer’s activities.
Development model
The Company’s strategy in the area of game production includes:
- development of its own development studio operating under the brand Kraken Unleashed;
- development of the author’s IP – Crossroads Inn, through the debut of the first own production in the video game industry, as well as complementary products: board games, books and others
- creation of further teams implementing new projects based on own or purchased IP (copyrights),
- developing R&D competences in the area of tools and software for creating games.
The Issuer has also indicated a list of games it intends to produce and release in 2019 and 2020 in section 7.2 Description of the Issuer’s activities.
Porting services
The Company’s strategy in the area of porting includes expanding the department by increasing the staff of IT specialists in the area of transferring games from PC to console platforms and acquiring technology in the area of porting.
The table below presents the aims of allocating funds obtained as part of the issue of series C shares, with division into categories, taking into consideration investment outlays or planned costs and the planned schedule for achieving specific aims.
