General / Off-Topic FD- HALF YEAR REPORT

Two things strike me after reading that.

"Revenue up 44% to £7.3m supported by self publishing pre release sales" - I'm surprised that self-publishing gains this much. Do publishers really take that much revenue from sales? I though, for example, Stream only took a few percentage points of the sale value.

Second thing was the name of the CFO - Neil Armstrong. Couldn't be any more apt.
 
Thanks for the link OP. I thought this was interesting:

Over the course of its life to date, Frontier's distribution of Elite: Dangerous from its own website to customers having Frontier accounts has allowed the company to retain almost 100% of revenue, which would otherwise have been reduced to around 70% using third party distribution. Frontier continues to review additional distribution opportunities for Elite: Dangerous to drive incremental sales.

My emphasis.
 
Two things strike me after reading that.

"Revenue up 44% to £7.3m supported by self publishing pre release sales" - I'm surprised that self-publishing gains this much. Do publishers really take that much revenue from sales? I though, for example, Stream only took a few percentage points of the sale value.

Second thing was the name of the CFO - Neil Armstrong. Couldn't be any more apt.

No dividend payment 2013, doesn't bode well when attracting investors.
 
Thanks for the link OP. I thought this was interesting:



My emphasis.

That is how steam works................. and a damn good reason for not going onto steam.......... yet............. I would not be surprised to see it there once its initial buy in price has dropped and sales dwindle but for now it makes sense to keep it in house and take all of the profit.
 
"...with the main focus being on deploying Frontier's innovative multi-player networking client / server technology in a real-world, high user number environment."

Will this ever get in ED ?
 
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I buy all my games from steam..

Except ED because I backed it and you cant

The point is how many sales have been lost by not being on steam. Outside of UK and previous Elite players of yore how many Know Elite and Frontier as a brand and can find the website?

If you compare sales of Elite to COD or GTAV then its not really alot. They need to grow new audiences in other countries.

I saw a report that China Japan and south korea are the growth regions

This weekend COD AW was on free access.

The future First person expansion might capture that segment
 
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A fairly predictable read. Only thing that bothers me is that there is little in the strategy to indicate how they will generate ongoing revenues from E: D; sure, multi-platform sales will be good but will not provide the expected/hoped for content to existing users; likewise, selling the Cobra technology is not going to yield any benefits for the gamners. Why does that matter? Because you need your existing customers to be happy in order to encourage new customers... I would hate this to go the same way as Hellgate: London.
 

Viajero

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A fairly predictable read. Only thing that bothers me is that there is little in the strategy to indicate how they will generate ongoing revenues from E: D; sure, multi-platform sales will be good but will not provide the expected/hoped for content to existing users; likewise, selling the Cobra technology is not going to yield any benefits for the gamners. Why does that matter? Because you need your existing customers to be happy in order to encourage new customers... I would hate this to go the same way as Hellgate: London.

Presumably it is the expansions.

But first the game needs to become a commercially attractive proposal on its own, the full fiscal year figures (up to march 2015) are probably required to start establishing that. This interim report is only to Nov 30th but already suggests there is a large amount of deferred revenues (pre launch) and cash laying around...
 
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Just some thoughts:

300,000 units of ED sold. 2/3 of those were pre-orders.

c.160,000 units at £8.4m is an average unit price of £52.50

Be interesting to see the year end units, if they provide them.
 
I buy all my games from steam..

Except ED because I backed it and you cant

The point is how many sales have been lost by not being on steam. Outside of UK and previous Elite players of yore how many Know Elite and Frontier as a brand and can find the website?

If you compare sales of Elite to COD or GTAV then its not really alot. They need to grow new audiences in other countries.

I saw a report that China Japan and south korea are the growth regions

This weekend COD AW was on free access.

The future First person expansion might capture that segment

Of course FD never thought of all this before developing and launching the game eh?
 
I buy all my games from steam..

Except ED because I backed it and you cant

The point is how many sales have been lost by not being on steam. Outside of UK and previous Elite players of yore how many Know Elite and Frontier as a brand and can find the website?

If you compare sales of Elite to COD or GTAV then its not really alot. They need to grow new audiences in other countries.

I saw a report that China Japan and south korea are the growth regions

This weekend COD AW was on free access.

The future First person expansion might capture that segment

Not really a fair comparison. Elite is a niche market game, hence the need to kickstarter it in the first place (OMG i can't believe I just verb'ed that, or that :) ).
You're better off comparing it to something like Sins of a Solar Empire. Both are niche games, self-published from a mid-size studio.

I do think though that steam would give a lot more visibility to ED. Generally if a game isn't on Steam, or gog, I won't hear about it, and even evil uPlay games manage to distribute through Steam. Many MMOs manage to distribute through steam, so it's not impossible. It's pretty much a closed issue though, as FD have been pretty firm about saying they won't use Steam.

Stardock is another interesting comparison here. They had their own distribution system, before selling it to concentrate on producing their software, instead of a distribution network and promptly put all their games on steam, and I suspect made a tonne of new sales. Ironically, Valve hasn't done that much in software/games since Steam took off. I don't really want to see FD going in that direction, i'd much rather FD use their engineering resources on games, not distribution.
 
Of course FD never thought of all this before developing and launching the game eh?

I dont know I havent asked them.. But the current players are very much those who played the original and mainly UK based. Did the Producers of Jupiter Acceding consider you need a decent plot not just fancy sfx to make a film successful
 
Of course FD never thought of all this before developing and launching the game eh?

to me it seems like they didn't think of a lot of stuff - before and during development even. So, they actually might have got this one wrong too.

Because we do it OUR way

...just saying
 
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Good read.
The next 6 months will be interesting for a number of reasons:

> FDEV need to increase the channel availability to purchase Elite Dangerous now. Self-publishing has achieved its goal of a higher margin but how much of that was eaten into against marketing costs ?

> Early access/ pre-orders fueled an increase in profits but this is a one-off. Same with Lifetime Expansion Passes, how many have been purchased as a one-off cost upfront against the current player community who will buy into them, and what's the potential difference in loss of revenue with the LTP model ?

Apart from development of the game itself I do think that opening up channels to purchase ED is critical to it becoming more popular. They could even release the Expansions via self-publishing first for a limited time then push to all channels later. Not sure how feasible that would be in reality but would allow an initial higher profit margin. Again though, the offset would be a marketing cost.
 
Agreed, they did miss a few tricks, I recall in a dev Q&A back in the summer about Oolite... none of them had ever played it.. which is a pity as it has some good concepts which align to Elite lore
 
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