Tag Archives: EG7

What Does LOTRO Need?

Yesterday Massively OP reported that Standing Stone/Daybreak/Enad Global 7 had announced a new expansion bundle for Lord of the Rings Online which allows one to purchase the six expansions between the base game and the current War of Three Peaks expansion for one… price…. that is lower than buying all of them individually.

The headline at Massively OP declared that the bundle “smashes its huge barrier to entry,” a suggestion that made me grimace.

The LOTRO Expansion Trove if you’re were interested

While not exactly a “people aren’t wearing enough hats” level of analysis, if I were to make a ranked list of problems that keep people from playing the game, buying all the expansions would be far down the list, as it is something I suspect never becomes an issue for the vast majority of the people who bother trying the game.

The problem there is that, as with my list about EVE Online from a few years back, there are lot of things that are simply outside of the scope of reality to address.

Yes, thanks to EG7 giving us a peek behind the curtains, we know that LOTRO is a viable, money making concern, but its income is more in the range of “sustain the status quo” rather than “rebuild and revamp.”

Page 15 – Year to Date numbers as of Sep. 30, 2020

That number is only through Q3 2020, so we might be able to assume that the game brings in maybe $13 million a year.  That is sustainable, but there is no bonaza of cash for updates in that number, and it falls well short of the estimated $100 million the game was reported to have made back in 2013.

I was honestly a bit surprised when SSG decided to upgrade the client to 64-bit, though that was more of a long term survival plan than something that would make things better.  At some point in the not too distant future Windows will stop supporting 32-bit apps, so better to get that done before it is a critical item for survival.  Certainly that move did not improve the client’s actual behavior in any noticeable way.

And I fear that anybody who is holding out hope now that EG7 is running the show that they will pour a bunch of money into the game is going to be disappointed.  The idea of there being a console version seems so far from reality that the only answer could be a completely new game build for modern consoles, which would leave the current game out in the cold.

So LOTRO is likely going to stay pretty much as is, a cranky old fantasy MMORPG from 2007 with a difficult to read UI (at just HD resolutions, don’t get me started on how it looks on my new monitor) and a lot of mindless repetitive game play.  Has anybody ever counted how many bears, board, and wolves you slay following the quest chains to level cap?

What can they do?

They are stuck because at their current revenue they clearly cannot make any large changes to the game.  And they are even more restricted than some comparable MMORPGs because they have to stick with approved Tolkien lore and have a game that tells a linear story so the expansions are not independent.  EQ could copy Blizzard’s parallel expansions idea is they had the mind and the budget, but would LOTRO be allowed to even tinker with having Moria and Rohan as parallel experiences on the way to Mordor?

The EQ version would have 26 parallels

Without something dramatic… and I have my doubts about what would even qualify… making money off of new players seems unlikely, so they’re left with the MMORPG standard policy of farming the installed base.

One way to do that is via expansions.

The SSG team can’t simply crank out more expansions for revenue.  I mean, the are trying, but they have trouble keeping up their current pace, have made some customers wary due to lightness of the Battle of Three Peaks expansion, and they’re running out of places to expand into in any case.  They do have another expansion coming this year, but the next thing needs to be in planning.

The other way to farm the installed base is special servers.  LOTRO has played this card once already, and successfully so far as I can tell, with the LOTRO Legendary server of late 2018.

They can always just play that card again.  I am sure there would be a decent response to a fresh start.  But if they want something different, I have an idea.

I’m grabbing this idea from something Star Wars: The Old Republic did a few years back.

I call this the LOTRO Epic Storyline server.

Turn off the side quests… if possible… and tune the xp output/curve so that players can level up through the story just running the epic quest line.

Maybe you don’t even need a special server for that.  Maybe you just have players buy a token for a character on a live server that boosts xp for the epic quest line.  It would be a nice way to catch up and get past some of the less inspired content that lays astride the path to level cap. (Looking at you Siege of Mirkwood.)

There are problems to be solved with the idea.  You would have to have a mechanism to keep player gear up to level along the way.  And then there are the special mechanics like legendary weapons or mounted combat that players would need to be guided through.

But it seems like a possible, reduced if not low effort way to attract some players and boost revenue a bit.

Or is there something else they can do?

Addendum: I mean, besides irritating their installed base by making the awful legendary system even worse.

A Timeline of SOE and Daybreak Games

We are entering a new era for the games of Daybreak which made me think it might be a good time to review the story so far.  We’re around the 25 year mark for when the seeds of the company were planted and, with the Enad Global 7 purchase, the time seems ripe.

  • The House that EverQuest Built

First there was EverQuest.

Firiona and friends at launch, 1999

At some point around 1996 John Smedley, working at Sony, managed to get Brad McQuaid, Jeff Buttler, Steve Clover, Bill Trost, and a host of others together to create a 3D online multiplayer fantasy game loosely (or not so loosely in places) based off of Sojourn MUD / TorilMUD.

Launched on March 16, 1999, a variety of Sony organizational names were connected to the game at different times including Sony Interactive Studios America, Verant Interactive, 989 Studios, Sony Computer Entertainment America, Sony Pictures, and Sony Online Entertainment.  My original disk and manual both display the 989 Studios logo prominently and names a couple others in the fine print.  As I mentioned in my 20 year anniversary reflections post about EverQuest, one magazine referred to the company running the game as Sony, Verant, and 989 in different parts of the same issue.  It was a confusing time.

Clarity came eventually though when EverQuest exceeded all expectations for success.  That was a bit of a surprise.  March of 1999 pre-dates the age of influencers and social media.  The internet wasn’t seen as a serious news source, though Matt Drudge breaking the Clinton/Lewinsky scandal had at least made a few start paying attention.  But a lot of us were still getting our gaming news via glossy monthly magazines where full page ads at the covers were the best way to gain attention.

I don’t recall any such ads for the game back in early 1999.  I only knew about the game because almost everybody then active on TorilMUD got invited to beta, usually by Brad McQuaid’s Aradune character in game.  I declined the beta invite, but came for the opening.

Not only were ads scarce, there wasn’t a lot of background to draw attention to the game.  Compare that to what most see as its direct competitor of the era, Ultima Online.  The Ultima franchise had been rolling along for more that 15 years when UO launched in late 1997.  The series spawned a studio, Origin Systems, that created other well known games.  And then there was Lord British, who ended up living in a castle and going into space on the proceeds of his Ultima empire.  UO had the fame, reputation, and lineage that EQ lacked.

And yet, at their respective peaks, EQ would have more than double UO’s subscribers.

EQ seemed to spread by word of mouth.  After buying it at Fry’s on my way home from work on launch day, I came into the office and told a bunch of people about it.  They all went out and bought copies and we ended up playing together.  And they told people and I told more people and others who played told people and soon the people I was telling already knew about it and there was a song “Has anybody seem my corpse?” being passed around and the whole thing had become something of a minor social phenomena.

And its success cemented the idea of online gaming at Sony so that the plethora of names was eventually pared down to Sony Online Entertainment.  25 years down the road from Smed collecting a team to get the ball rolling, this is all still the house that EverQuest built.

  • A Timeline of Events

This is not an exhaustive list, and I am not going to try to piece together things that came before March 16, 1999 or betas for various games.  Early access though, that is another story. I am also going to try not to editorialize, which won’t be easy for me.  If I have missed anything important, drop me a note or a comment and I’ll update the post.

  • 1999
    • Mar 16 – EverQuest launches, servers are quickly overloaded and a long series of new servers kicks off
    • Jul 28 – MMORTS Sovereign announced
  • 2000
    • Apr 24 – The Ruins of Kunark, the first EverQuest expansion, launches
    • Oct 5 – SOE acquires Infantry
    • Dec 5 – The Scars of Velious, EQ expansion #2
  • 2001
    • Apr 17 – Cosmic Rift launches
    • Dec 4 – The Shadows of Luclin, EQ expansion #3
  • 2002
    • Oct 29 – The Planes of Power, EQ expansion #4
  • 2003
    • Feb 11 – Sovereign MMORTS officially cancelled
    • Feb 11 – EverQuest Online Adventures launches on PlayStation 2
    • Feb 25 – The Legacy of Ykesha, EQ expansion #5
    • May 20 – PlanetSide launches
    • Jun 24 – EverQuest Macintosh Edition launches
    • Jun 26 – Star Wars Galaxies launches
    • Sep 9 – Lost Dungeons of Norrath, EQ expansion #6
    • Nov – Star Chamber: The Harbinger Saga launches
    • Nov 17 – EverQuest Online Adventures: Frontiers expansion launches
    • Dec 1 – Lords of EverQuest, a single player Windows RTS, launches
  • 2004
    • Feb 10 – Gates of Discord, EQ expansion #7
    • Feb 10 – Champions of Norrath launches on PlayStation 2
    • Mar – EverQuest subscribers hit a peak of 550K
    • Sep 14 – Omens of War, EQ expansion #8
    • Oct 27 – SWG Jump to Lightspeed expansion
    • Nov 8 – EverQuest II launches
    • Nov 12 – A second round of EQII servers are launched to absorb the surge of new players
    • Nov – SOE introduces the Station Access plan that gives players a combined subscription to EQ, EQII, and Planetside for $22 a month
    • Nov – EQII subscribers who opt for Station Access get two extra character slots on their account and access to the EQII Players stats page
    • Dec – EQII is down for almost two days as an update breaks the live servers
  • 2005
    • Jan – SOE Announces SWG is being added to Station Access
    • Feb 7 – Champions: Return to Arms is launched on PlayStation 2
    • Feb 8 – EQ server consolidation starts with the four PvP servers being combined into the single Zek server
    • Feb 15 – Dragons of Norrath, EQ expansion #9
    • Feb 17 – SOE temporarily adds the /pizza command to EverQuest II as a cross promotion with Pizza Hut allowing players to order a pizza from within the game
    • Mar 21 – The Bloodline Chronicles, the first EQII adventure pack launches
    • Mar 22 – Untold Legends: Brotherhood of the Blade, a PSP title, launches
    • Apr – SOE begins a series of EQ server merges to bolster the populations, which runs on until the end of June
    • Apr – EverQuest II – East, developed for China, Taiwan, and South Korea, launches
    • May 5 – SWG Rage of the Wookies expansion launches
    • Jun 28 – The Splitpaw Saga, the second EQII adventure pack launches
    • Jul 20 – EQII gets new servers, Shadowhaven, The Bazaar, and The Vox PvP under the Station Exchange program, which allows players to sell in-game items for real world money; players are allowed to transfer characters there from other live servers
    • Aug 15 – SOE takes over operation of The Matrix Online
    • Sep 13 – Depths of Darkhollow, EQ expansion #10
    • Sep 13 – Desert of Flames, the first EQII expansion
    • Nov 1 – SWG Trials of Obi-wan expansion launches
    • Nov 8 – SWG New Game Enhancements update lands, changing character progression
    • Nov 9 – The “SOGA” character models from EverQuest II – East become an available option in EverQuest II
  • 2006
    • Jan – SOE announces they will be merging 10 low population EQII servers into 10 medium population servers because players are “too spread out” on the low population servers.
    • Feb 17 – Shadowhaven Station Exchange server is merged into The Bazaar server
    • Feb 21 – Prophecy of RoEQ expansion #11
    • Feb 21 – Kingdom of Sky, EQII expansion #2
    • Mar 28 – Untold Legends: The Warrior’s Code, a PSP title, launches
    • Mar 29 – EverQuest II – East is shut down, with all Chinese accounts transferred to the Mistmoore server, all Taiwanese accounts to the Najena server, and all Korean accounts to the Unrest server
    • Jun – EQ launches the first progression servers for the game, The Combine and The Sleeper, which let players play though all of the game expansions in order
    • Jun 14 – The Fallen Dynasty, the third EQII adventure pack launches
    • Sep 19, The Serpent’s Spine, EQ expansion #12
    • Nov 13 – Echoes of Faydwer, EQII expansion #3
    • Nov 15 – Untold Legends: Dark Kingdom, a PSP title, launches
  • 2007
    • Jan 30 – Vanguard: Saga of Heroes launches with SOE as publisher
    • Feb 13 – The Buried Sea, EQ expansion #13
    • May 9 – Legends of Norrath collectible card game is launched, running within EQ and EQII
    • May 15 – SOE takes over operations for Vanguard: Saga of Heroes
    • Mar 21 – The Sleeper EQ progression server is merged into The Combine server
    • Apr 30 – The EQII Darathar– UK PvP, Gorenaire– FR PvP, and Talendor– DE PvP servers are merged into the Venekor – RP PvP server
    • Jul 11 – The Agency is announced
    • Jul 19 – EQuinox, the official print magazine of EverQuest II is announced with issue #1 featuring Rise of Kunark information and beta access
    • Oct – Station Access pricing peaks at $30 a month for subscription access to all SOE titles including The Matrix Online and Vanguard: Saga of Heroes
    • Nov 13 – Secrets of Faydwer, EQ expansion #14
    • Nov 13 – Rise of Kunark – EQII expansion #4
    • Dec – SOE is caught after moving the level 60 Unholy Trinity guild off of the test server to a live server, an action against stated company policy and not something ever made available to the average player, causing a fierce reaction from players
    • Dec – A false rumor spreads that Zapak Digital Entertainment is planning to purchase SOE and its games for $300 million, an amount close to what the company will sell for in December of 2020
  • 2008
    • Jan 22 – Pirates of the Burning Sea launches with SOE as publisher
    • Feb 14 – EQuinox issue #2 is announced, featuring Legends of Norrath cards
    • Apr 16 – LiveGamer is brought in to run financial transaction for the Station Exchange RMT servers The Bazaar and The Vox PvP
    • ~Sep – EQuinox issue #3 is cancelled and the magazine idea is scrapped
    • Oct 21 – Seeds of Destruction, EQ expansion #15
    • Oct 24 – The EQII Venekor– RP PvP is merged into the Nagefen, the final remaining PvP server
    • Nov 18 – The Shadow Odyssey, EQII expansion #5
    • Dec – SOE introduces Station Cash, a virtual currency, and an in-game cash shop in EQ and EQII
  • 2009
    • Jan 23 – SOE games become available on Steam starting with EverQuest and EverQuest II
    • Apr 28 – Free Realms launches
    • Jul 31 – The Matrix Online is shut down
    • Dec 15 – Underfoot, EQ expansion #16
  • 2010
    • Feb 16 – Sentinal’s Fate, EQII expansion #6
    • Mar 4 – The Combine EQ progression server is merged into the Druzzil Ro live server, ending the first retro server run for the company
    • Apr – SOE tries a new EQII Passport subscription plan where for just $5.00 a month you can play for three consecutive days during a single month
    • May 5 – SOE announces The Agency: Covert Ops, a free to play title on Facebook
    • Jun 10 – Tanarus, a title that predated EverQuest was shut down
    • Jun 22 – EQ server merges come again, paring down the server count by ten as low population servers are merged into more populated ones
    • Jul – EverQuest II Extended, a free to play version of EQII launches
    • Aug – Plans for EverQuest Next announced at FanFest
    • Sep 15 – Star Wars: The Clone Wars Adventures launches
    • Oct 12 – House of Thule, EQ expansion #17
  • 2011
    • Jan 11 – DC Universe Online launches on Windows and PlayStation 3
    • Feb 15 – The Fippy Darkpaw EQ time locked progression server launches, with the Vulak’Aerr server being added soon thereafter to handle the crush of players (I have a whole timeline for those servers)
    • Feb 22 – Destiny of Velious, EQII expansion #7
    • Mar 31 – The Agency is officially cancelled
    • Apr – Flying mounts introduced into EQII
    • May – SOE games are down for almost two weeks as part of the PlayStation Network security breach in which personal data from a reported 24.6 million accounts were compromised
    • Jun – At E3 SOE announced that pricing for Station Access, now called SOE All Access, would drop from $30 to $20 a month, but extra character slots for EQ, EQII, and Vanguard would no longer be part of the plan
    • Aug – SOE finally gets a unified server status page
    • Nov 1 – DC Universe Online goes free to play
    • Nov 15 – Veil of Alaris, EQ expansion #18
    • Dec 6 – Age of Discovery, EQII expansion #8, which also ushers in the free to play era of the game as EverQuest II Extended is folded into the live server list
    • Dec 15 – Star Wars Galaxies is shut down
    • Dec 18 – The Vox PvP Station Exchange server for EQII is merged into the Nagefen server
    • Dec 21 – The Bazaar Station Exchange server for EQII is merged into the Freeport server ending the Station Exchange program
  • 2012
    • Feb – SOE announces it is selling its EU customer accounts to a German media company, ProSiebenSat.1
    • Mar 16 – EverQuest goes free to play
    • Mar 29 – EverQuest Online Adventures shuts down on PlayStation 2
    • Mar 29 – Infantry is shut down
    • Mar 29 – Cosmic Rift is shut down
    • Mar 29 – Star Chamber: The Harbinger Saga is shut down
    • Aug 7 – Vanguard: Saga of Heroes goes free to play (a week earlier than planned)
    • Aug 7 – SOEmote is introduced to EverQuest II
    • Sep – SOE introduces Player Studio for EQII, which allows players to create cosmetic items to sell in the in-game cash shop, for which they will be paid a cut of the sale
    • Nov – SOE introduces Krono for EQ and EQII, an in-game item that can be redeemed for 30 days of subscription time, which users can purchase for real world cash and sell at the broker to other players for in-game currency
    • Nov 13 – Chains of Eternity, EQII expansion #9
    • Nov 20 – PlanetSide 2 launches
    • Nov 28 – Rain of Fear, EQ expansion #19
  • 2013
    • Jan 30 – SOE publishes the import Wizardry Online as a F2P title
    • Jan 31 – Pirates of the Burning Sea ceases to be published by SOE
    • Aug – A new vision/plan for EverQuest Next is announced at FanFest, which includes the involvement of Storybricks
    • Aug – The FanFest presentation mentions a dev tool EverQuest Next called Landmark
    • Sep 23 – SOE publishes the import Dragon’s Prophet as a F2P title
    • Oct 8 – Call of the Forsaken, EQ expansion #20
    • Nov 12 – Tears of Veeshan, EQII expansion #10
    • Nov 13 – SOE starts selling early access packs to EverQuest Next Landmark
    • Nov 15 – DC Universe Online launches on PlayStation 4
    • Nov 18 – EverQuest Macintosh Edition is shut down
  • 2014
    • Jan – Station Access/SOE All Access pricing drops to $15 a month, the price of a single game subscription, but keeps the 500 Station Case stipend after the forums erupt when Smed suggests they may remove that benefit
    • Jan 24 – SOE announced they will be shutting down Free Realms, Star Wars: The Clone Wars Adventures, Wizardry Online, and Vanguard: Saga of Heroes, which is seen as the reason they have cut the price of SOE All Access
    • Mar – EverQuest Next Landmark becomes just Landmark
    • Mar 31 – Free Realms is shut down
    • Mar 31 – Star Wars: The Clone Wars Adventures is shut down
    • Apr 10 – H1Z1 is announced, a zombie horror title oddly dedicated to SWG players
    • Jun 18 – The ProSiebenSat.1 experiment ends and all EU accounts are transitioned back to SOE
    • Jul 31 – Wizardry Online is shut down
    • Jul 31 – Vanguard: Saga of Heroes is shut down
    • Oct 28 – The Darkened Sea, EQ expansion #21
    • Nov 11 – Altar of Malice, EQII expansion #11
  • 2015
    • Jan 15 – H1Z1 releases as early access
    • Jan 22 – The class action suit for the PlayStation/SOE security breach of May 2011 is resolved, awarding the lawyers $2.75 million and each affected player 450 station cash… but only for US players and only if you filled out a form and could prove you were affected
    • Feb 2 – Sony announces it has sold SOE to Columbus Nova and the organization will be known as Daybreak Game Company going forward
    • Apr 28 – The Rum Cellar, the fourth EQII adventure pack launches
    • Apr 30 – Daybreak acknowledged and blessed the existence of the Project 1999 EQ retro server being developed by a private group, with the P1999 team and the Daybreak EQ team coordinating updates so as not to overlap each other
    • May 22 – EQ opens the Ragefire progression server, the start of a regular run of special servers that help boost the game’s popularity by pulling back many lapsed players
    • Jul 24 – Daybreak announces that long time studio head John Smedley is leaving the company
    • Jul 24 – EQII launches the Stormhold progression server and Deathtoll PvP server, the first retro servers for the game
    • Aug 21 – EQII announces the Drunder server, where rule breakers will be sent to play and no customer support will be available
    • Oct – Nine of the lower population EQII servers, including the final PvP server Nagefen, are merged down to three PvE servers, all with new names (Maj’dul, Halls of Fate, and Skyfire), while the Antonia Bayle server remains unto itself
    • Nov 16 – Dragon’s Prophet is shut down
    • Nov 17 – Terrors of Thalumbra, EQII expansion #12
    • Nov 18 – The Broken Mirror, EQ expansion #22
  • 2016
    • Feb 8 – H1Z1 King of the Kill the battle royale game and H1Z1 Just Survive, the co-op zombie horror game, are split into two products, both remain in early access
    • Mar 8 – The EQII Deathtoll PvP retro server is shut down
    • Mar 11 – EverQuest Next officially cancelled, leaving Landmark the remaining active part of that project.
    • Apr 29 – DC Universe Online launches on XBox One
    • Jun 10 – Landmark leaves early access and goes live
    • Jul 1 – PlanetSide is shut down
    • Aug 17 – Legends of Norrath is shut down
    • Nov 15 – Kunark Ascending, EQII expansion #13
    • Nov 16 – Empires of Kunark, EQ expansion #23
    • Dec 19 – Daybreak acquires Lord of the Rings Online and Dungeon & Dragons Online from Warner, setting them up under the name Standing Stone Games, never mentioning in public that they are the actual owners
  • 2017
    • Feb 21 – Landmark is shut down
    • Jul 31 – LOTRO launches the Mordor expansion
    • Sep 22 – The Vulak’Aerr EQ time locked progression server is merged into the Fippy Darkpaw server
    • Oct – H1Z1 King of the Kill renamed H1Z1 again due to a desire to release the game in China, where having “kill” in a game name is frowned upon by government censors
    • Nov 28 – Planes of Prophecy, EQII expansion #14
    • Dec 12 – Ring of Scale, EQ expansion #24
  • 2018
    • Feb 28 – H1Z1 leaves early access and goes live
    • Apr 24 – In response to a question about Russian sanctions Daybreak issues a statement declaring it was never owned by Columbus Nova, in open contradiction to three years of information, and was always solely owned by Jason Epstein
    • Apr 24 – Daybreak removes all references to Columbus Nova from its web site and attempts to edit the Wikipedia page about the company to hide any Columbus Nova connection
    • Aug 7 – H1Z1 launched on PlayStation 4
    • Sep 4 – The EQII progression server Stormhold is merged into the Antonia Bayle server, ending its run
    • Sep 6 – Daybreak announces a deal with NantWorks to create NantMobile G which will take over H1Z1 on PC with a plan to revitalize it, starting by rebranding it as Z1 Battle Royale
    • Sep 6 – NantMobile G project also proposes mobile versions of Z1 Battle Royale and EverQuest
    • Oct 24 – H1Z1 Just Survive is shut down
    • Nov 13 – Chaos Descending, EQII expansion #15
    • Dec 11 – The Burning Lands, EQ expansion #25
    • Dec 14 – Planetside Arena is announced, an attempt to bring battle royale to PlanetSide 2, with pre-orders for early access for sale
    • Dec 18 – Daybreak offers 4,000 lifetime subscriptions for sale at $299 each
    • Dec 24 – Daybreak announces that they have sold out the 4,000 lifetime subscriptions
    • Dec 28 – Daybreak puts 6,000 more life time subscriptions up for sale through Dec. 31st
  • 2019
    • Feb 18 – PlanetSide Arena launch is delayed until summer, allegedly to have a simultaneous launch on PlayStation 4, all pre-orders are refunded
    • Jul 11 – After over a year being offline, Daybreak announces that Player Studio for EQII has been shut down
    • Apr 6 – NantMobile G hands Z1 Battle Royale back to Daybreak having failed to revitalize the game, after which little is heard about the PC version
    • Aug 6 – DC Universe Online launches on Nintendo Switch
    • Aug 30 – A PlanetSide Arena roadmap is released with plans for early access soon, with an official launch in 2020, PC only
    • Sep 19 – PlanetSide Arena arrives in early access just barely making the declared “summer” launch plan
    • Oct 21 – A PlanetSide producer’s letter states that PlanetSide Arena is a stepping stone towards PlanetSide 3
    • Nov 5 – LOTRO launches the Minas Morgul expansion
    • Dec 14 – Daybreak announces that PlanetSide Arena will be shut down in January
    • Dec 17 – Blood of Luclin, EQII expansion #16
    • Dec 18 – Torment of Velious, EQ expansion #26
  • 2020
    • Jan 10 – PlanetSide Arena is shut down
    • Jan 21 – Daybreak announces a series of sub-studios, with Darkpaw Games responsible for EverQuest and EverQuest II, Dimensional Ink handling DC Universe Online, and Rogue Planet Games handling PlanetSide 2
    • May 20 – The Fippy Darkpaw EQ time locked progression server ends its nine year run as it is merged into the Vox live server
    • Oct 20 – LOTRO launches the War of Three Peaks expansion
    • Dec 1 – Enad Global 7 (EG7) announces plans to acquire Daybreak
    • Dec 2 – EG7 presents an unprecedented array of previously private information about Daybreak to its board, shareholders, and the general public proving, if nothing else, that the company made money
    • Dec 8 – Claws of Veeshan, EQ expansion #27
    • Dec 15 – Reign of Shadows, EQII expansion #17
    • Dec 23 – EG7 completes the acquisition of Daybreak Game Company

And that brings us up into the new year.  We shall see what 2021 and beyond holds for the company

  • Sources

The joy of me blogging the way I do is that I have a blog post that corresponds to most every item on the above list that happened in the last decade.  I considered linking to each and every one, but decided against it.  You can use the search box at the top of the page if you want to find posts here about things like EQII Passport.

Before 2010 I was more chaotic in my blogging and, of course, before September 2006 there was no blog, so nothing to reference.  Fortunately, I had done a post about SOE and its MMORPGs back in 2016 where I had recorded the status of their games, and had researched a bunch of other items in the past.  This blog isn’t all just about Blackrock Depths and World War Bee.

And, where that failed, Wikipedia remains a wonderful source.  There are well maintained pages about most of the games and lists of all the expansions for both EverQuest and EverQuest II that helped me quite a bit.  And over at Daybreak there is even a server merge page for EverQuest and another for EverQuest II servers deep in their site.  There are some errors, but the dates seem solid.

As for what to include, I am obviously biased towards the games I play or played.  I did try to include every paid expansion for games, as those were generally pretty easy to find.  Game content updates are more obscure, though somebody has charted all of the episode drops for DC Universe Online on that Wikipedia page.  I just wasn’t that dedicated to the post.  I started getting into special servers, but decided once they became an annual thing in 2015, I declared them as such and moved on.

Enad Global 7 Completes the Deal to Buy Daybreak

At the beginning of the month we learned that the Swedish company Enad Global 7 (EG7) was planning to purchase Daybreak Game Company.  The deal was expected to close by December 31st.

Enad Global 7

Following that announcement, EG7 made a public presentation to its shareholders that disclosed more information about Daybreak and its games than we had previously known, including:

  • DC Universe Online has the company’s highest revenue and player count
  • EverQuest is the most profitable title
  • They still have rights to make a Marvel game
  • They own Lord of the Rings Online and Dungeons & Dragons Online through Standing Stone Games

There are a lot of spicy details in that post I linked and more in the presentation.

Yesterday EG7 announced that the deal to acquire Daybreak had been completed:

COMPLETION OF THE ACQUISITION OF DAYBREAK GAME COMPANY

The upfront consideration which has been paid for 100 percent of the shares in Daybreak amounts to USD 260 million, equivalent of approximately SEK 2,205 million, on a cash- and debt- free basis (the “Upfront Consideration“). The Upfront Consideration is comprised of the Cash Consideration and the Consideration Shares.

The value of the Consideration Shares amounts to USD 100 million, corresponding to approximately SEK 848 million and 10,079,981 shares in EG7. The price per EG7 share is based on a based on a volume weighted average price of the EG7 share on Nasdaq First North Growth Market for the ten consecutive trading days preceding 1 December 2020 equal to SEK 84.14 per share. The Cash Consideration of approximately USD 160 million, equivalent of approximately SEK 1,357 million, has been paid in cash and is financed through available funds raised via the directed share issue announced on 1 December 2020.

In addition, EG7 will pay the deferred consideration to the sellers of Daybreak of USD 40 million following finalization of Daybreak’s FY 2020 financial statements. The deferred consideration will be paid in cash.

On 2 December 2020, the board of directors resolved to issue the Consideration Shares, subject to the approval from the extra general meeting on 17 December 2020. The extra general meeting approved the share issue and the board of directors has today resolved to allot the Consideration Shares as part of the completion of the Transaction. The issue of the Consideration Shares results in a dilution of approximately 13.2 percent of the number of shares and votes in the Company after the Transaction, through an increase in the number of outstanding shares by 10,079,981, from 66,550,378 to 76,630,359. The share capital will increase by SEK 403,199.40 from SEK 2,662,015.12 to SEK 3,065,214.36.

EG7’s and Daybreak’s financial reporting will be consolidated from 22 December 2020.

For further information about the acquisition of Daybreak, please refer to the previous press release published on 1 December 2020.

As the deal was for both cash and shares in EG7, the Daybreak shareholders will now own some of EG7.

Following the Transaction, Daybreak’s former main owner Jason Epstein will hold approximately 10 percent and the other former shareholders of Daybreak will together hold approximately 3 percent of the total number of outstanding shares and votes in EG7.

So we’re not rid of Jason Epstein yet I suppose.

The EG7 board had approved an increase in the number of outstanding shares in the company, as announced in a press release last week, in order to fund the acquisition.

While the position of EG7 has been quite positive about Daybreak and its titles… or most of them anyway… we will likely have to wait until well into the new year to find out what impact the sale will have.

Daybreak Revealed in Enad Global 7 Presentation

As I mentioned yesterday, we did not know much about Daybreak Game Company over its close to six years of existence.  It was a privately held firm and was reluctant to be straight with outsiders as to who even owned the company.  And before that, when it was SOE, its details were hidden within a giant conglomerate where it was such a small piece of the pie that it did not even get its own line item.

So having Daybreak purchased by a small public company, where it will be a large part of the pie and which needs to disclose details to the public means that we’re learning more about the company this week than we have known for ages.  Roll on Enad Global 7.

Enad Global 7

Yesterday’s press release about the acquisition gave us some fresh information and confirmed things we suspected, like the fact that Daybreak owned Standing Stone Games.  But there is more to be seen.  Over on their investor relations page you will find a presentation by EG7 about the state of Daybreak and its games that is stunning in its clarity after all these years.

It is so meaty that I downloaded it immediately lest it be posted in error and disappear.

The presentation starts by introducing EG7’s strategy and execution of their plan so far, which is an interesting read showing their acquisition pace up to this point.  And then there is the About Daybreak section, which starts with a nicely summarized history of the company.

Page 12 – a Brief History of SOE/Daybreak

Just enough detail I think.  A few side ventures are missing, and there is a whole book to be written about the strange path of H1Z1 over the last five years, but otherwise the basics are laid out.

They mention the licensed IPs the company has, as well as the valuable IPs Daybreak has created.

Page 14 – Valuable home grown IPs

EverQuest has booked about a billion dollars in revenue over its life.  Not bad.  A lot of games never come close to that number or 21 years of longevity.  The H1Z1 notes are a bit sad… inspired actually successful titles.  Sad enough that they stop mentioning H1Z1 after that.  And I still have a retort to that PlanetSide 2 world record which was a planned event and not any sort of organic player surge.

Cool stuff so far.  And then we get the real dirt!  Actual numbers about earnings and players.

Page 15 – Year to Date numbers as of Sep. 30, 2020

There are some surprises there, though not many.  We had been told that EverQuest was still pretty strong and it was implied that it was doing better than EverQuest II.  But now we know where EQII ranks in the overall lineup, which I guess is ahead of H1Z1, which doesn’t even get a mention.

And then there is DC Universe Online.  Smed, back in the day, told us that it was the top free to play game on PlayStation, and I guess it has held on to a solid base of players.  But if you want that all in chart form, there is a page for that.

Page 16 – Revenue and Earnings compared YTD through Sep. 30 2020

DC Universe Online has the highest revenues, but when it comes to earnings after expenses EverQuest is out in front.  That’s the joke.  A 21 year old game brings home the bacon.

Years ago Michael Zenke had been to SOE and was asking them about why they kept on with EverQuest when you could argue that EverQuest II was a better, or at least more up to date game.  He told me that EQ was so cheap to run that it was going to be profitable to keep going for a long, long time.  And here we are.

That DCUO isn’t at the top of the earnings is likely an indication that it remains strongest on the PlayStation, where it has to give Sony a cut of the revenue from the cash shop.

The presentation digs into further detail.  While the games still attract new players, a majority of the player base has been playing their game of choice for more than three years.

On the money front, the average monthly revenue per paying user for 2020 so far looks pretty strong.

Page 17 – ARPPU YTD through Sep. 30, 2020

Some whales out there spending money.  Of course, that is just the count among users that pay, and the conversion to paying user is important.

Page 17 – Payer conversion rate – YTD through Sep. 30, 2020

For EQ and EQII that probably translates largely to subscribers through the All Access program.  EQ just beats EQII on revenue because it has a lot more players.  Likewise, DCUO has the most players by far, so even at a much smaller conversion rate it makes more money.

I think the lesson here is more players is better if you want to survive.

The presentation also has some plans for the future.  They want to do an upgrade for DCUO to make it look and play better on the new generation of consoles by this time next year.  They also want to spruce up LOTRO as they see a possible boon in Amazon’s upcoming Lord of the Rings TV series.  There is even an unannounced new project.  Maybe it is related to the Marvel IP license Daybreak apparently holds.

The plans and view of the combined company are something as well.  As far as revenue goes, EG7 buying Daybreak pretty much doubles the size of the company in staff and revenue.

Page 27 – YTD revenue for EG7 groups

That is a big bite.  Daybreak’s ongoing success will very much influence EG7’s success.  They aren’t buying the company to neglect it.

While the era of the Jason Epstein Daybreak will end on December 31st, Daybreak will continue to exist as an entity withing EG7.  Within the corporate structure the Daybreak stuff will have its own area.

Page 28 – The Daybreak Structure

I am curious as to whether or not that was the actual structure within Daybreak today simply being grafted on to the EG7 tree.  I know Jen Chan let slip at one point about working with the SSG team on some things. (No location for Cold Iron Studios on that chart though, so no idea still if it was part of the sale and too small to mention, was folded in with Dimensional Ink due to the Cryptic background of both groups, or was retained by Jason Epstein.)

As for why keep that structure, that is certainly the best plan for the short term.  When you have an asset that needs to keep performing you do not introduce chaos as your first step in integrating.  Things will likely change over time.

Daybreak itself will likely remain a legal entity for a long time.  Having been through many mergers and acquisitions over the last 30 years… on average that has happened in a way that involved me directly about every three years over that time… there are a lot of reasons to not simply dissolve a corporate entity.  There are a lot of contracts and agreements made in the name of that company that have to be transferred over time, and the other side of the agreement doesn’t care about the change.  So you wait until a contract comes up for renewal and then you transfer it to the new owning company.  That can easily take a decade to work itself out.

And Daybreak, for all its foibles over the last six years, remains the unifying identity for the teams under it.  That is who they are in the EG7 ecosystem.

Page 24 – EG7’s world wide organization

That big owlbear eye that is the Daybreak logo will be looking out at us for a while longer.

Related posts:

Daybreak to be Acquired by Enad Global 7

Enad Global 7 (EG7) announced in a press release earlier today that would be purchasing Daybreak Game Company for $300 million in a structured payout deal. ($260 million up front, $100 million in shares and $160 million in cash, plus another $40 million in cash if Daybreak makes its projected 2020 numbers.)  A bunch of news items have popped up about this today and I will link to them and other reactions at the end of the post.

Enad Global 7

That will get them the following games according to the press release:

  • EverQuest
  • EverQuest II
  • H1Z1
  • PlanetSide 2
  • DC Universe Online
  • Lord of the Rings Online
  • Dungeons & Dragons Online

Not mentioned was Cold Iron Studios, which Daybreak was said to have acquired back in August.  But maybe that was Jason Epstein or Columbus Nova who actually bought it.

And I am not really kidding with that.  The nearly six year history of Daybreak has not been characterized by a close relationship with the truth when it came to the business, so a surprise twist or a revision of history would be right in line with past behavior.  Even now we’re just finally getting confirmation that Standing Stone Games was owned by Daybreak… or Jason… or Columbus Nova… after being told that Daybreak was merely going to be SSG’s “publisher.”  So I guess EG7 is buying Standing Stone Games as well.

The press release is also interesting as it lists out some of the Daybreak financials that were part of its due diligence.  We could barely find numbers about the company when it was part of Sony and never saw a thing since it was Daybreak.  For example, Daybreak has 178 million registered users of its games.  I’m sure they’re not all active, but that database alone has some value.

Anyway, the first question to leap to mind for me was, “Who the hell is EG7?”

The press release echoes the info on their web site which says:

EG7 is a group of companies within the gaming industry that develops, markets, publishes and distributes PC, console and mobile games to the global gaming market. The company employs 170+ game developers and develops its own original IP:s, as well as act as consultants to other publishers around the world through its game development divisions Toadman Studios, Big Blue Bubble and Antimatter Games. In addition, the group’s marketing department Petrol has contributed to the release of 1,500+ titles, of which many are world famous brands such as Call of Duty, Destiny, Dark Souls and Rage. The group’s publishing and distribution department Sold Out holds expertise in both physical and digital publishing and has previously worked with Team 17, Rebellion and Frontier Developments. The Group is headquartered in Stockholm with approximately 270 employees in 10 offices worldwide.

So, a Swedish company, something confirmed over at Bloomberg, without much more to add, though their summary is much more succinct:

Enad Global 7 AB operates as a game development studio. The Company develops, markets, publishes, and distributes PC, console, and mobile games. Enad Global 7 serves customers worldwide.

The company, founded in 2013, says it is a game developer and has very recently purchased a few small studios, but its biggest claim to fame seems to be that its marketing department has helped out with some famous brands, likely just for the Swedish market if I were to make a guess. (Though their online presence is pretty week. They discovered Twitter just this year.)  And now they’ll have a bag of MMORPGs to play with.

As for what it will mean for the games and employees of Daybreak, that remains to be seen.  The press release has the usual rosy optimism in its quotes, as all such press releases do.

I am thrilled to be welcoming Daybreak into the EG7 family today. Daybreak is a studio I have the utmost admiration for, not only for their games but the teams behind those games and services. Together we have bold and exciting plans for the future, and I look forward to making those dreams a reality for gamers all over the world.

Robin Flodin, CEO and Co-founder of EG7

This could be a boon for the company, or they could get the Gamigo treatment like Trion did when they were acquired.  Or EG7 might just want the data for the 178 million registered Daybreak users for marketing purposes… that actually gets a mention in the press release. (Bad news for them, at least three of those users are just me.)

But that will all come later.

We’re still in the phase where the deal isn’t done yet and both sides of the transaction are invested in keeping to the status quo going.  Expansions for EverQuest and EverQuest II will launch this month (Dec. 8th and 15th respectively, the latter being announced today along with the acquisition).  Updates will keep coming out.  Nobody is going to lose their job just yet.

But the deal is expected to close by December 31, 2020, so the real situation likely won’t become apparent until next year.  Some people will no doubt be redundant and get laid off.  Plans may change.  And maybe the individual studios that Daybreak created earlier this year will end up being used to distinguish the groups.  But come the new year Daybreak, announced back in February of 2015, will likely cease to be a thing.

Related posts (Those with info beyond the press release marked*):