Two Million Sales to Freedom

Mike Kayatta

Minister of Secrets
Aug 2, 2011
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Two Million Sales to Freedom



At this point, we all know the story: no-name indie developer with a fresh idea wrestles a game to market, makes his or her millions, and moves up in the world. It's hard not to love the concept - great games deserve great reward - but sometimes, it's just not that simple. When Arnt Jensen and Dino Patti formed Playdead to produce Limbo and wound up selling an unexpected two million copies, things should have been so straightforward. But they weren't. Two years after enjoying success that most new studios can scarcely dream of, Playdead has barely broken even. Nearly everything Jensen and Patti have earned has already been spent, just to keep their company from being sold out from under them.

The year is 2006, and Jensen and Patti had just joined forces to take Limbo from vision to product. The pair had initially planned to develop the game by themselves, but as its scope widened, both realized that additional capital would be needed to finance the game. At this point, Playdead had already been approached by numerous publishers, in some cases offering Jensen and Patti nearly anything they wanted in exchange for rights to the IP. Jensen, however, declined, claiming that publishers would never be able to afford them the freedom to allow for what he called "chaos and experimentation." "To me," he said, "these offers felt like a contract with the devil.

"I've never liked the idea of business people being in control of creative decisions, and I firmly believe that money and creativity shouldn't be mixed. Business people always want to measure progress but the fact is creativity cannot be measured."

Still, if Playdead was to produce the Limbo that Patti and Jensen had envisioned since forming the company, they'd still need the capital to finish production. With publishers off the table, the team was left with but one option: gathering independent investors to help finance the game instead. But while both Jensen and Patti ensured that any financiers they signed with couldn't alter the game, their backers' inexperience with game development proved a constant source of aggravation, forcing the team's attention toward coping with external pressures and wasting time with what Jensen considered "pointless and endless board meetings." Still, despite the hassles, Playdead was eventually able to reach its end goal, and by 2010, had created the Limbo it had always intended - even if they'd had to go through external business partners to get there.

"When we showcased the game to the public for the first time during GDC 2010, we got massive reactions and I became pretty confident about the potential success of the game," Patti said. And he was right. Though it had been impossible for him to know at the time, Limbo would go on to earn countless awards, including two during its initial outing at that very conference. In fact, within just one month of the game's release later that year, Limbo had already sold 300,000 copies, the same number Patti and Jensen had hoped to achieve from the game's entire lifecycle. Unfortunately, around the same time that Playdead's flagship game hit the spotlight at GDC, its financial partners made it clear that they had different plans for the company: they wanted to sell, a decision that would have put Patti and Jensen in the exact situation they'd partnered to avoid.

During the following years, Limbo sales exploded, eventually reaching nearly seven times initial estimates. But while their game was finding unexpected successes, Jensen and Patti were trapped in a struggle to achieve independence from the very people who'd helped fund it, and hold on to the company they'd built together.

Finally, by August of 2011, Jensen and Dino were able to make money enough from their once small project to take back both Limbo and Playdead, exhausting much of the profits their breakout hit had made them in the process. "It was a fight that lasted two years," Patti said," and cost us the majority of what we earned from Limbo. I still think it was worth it."

Now, with many of the initial proceeds of Limbo gone, and no interest in attracting a publishing parent, Playdead is once more just a small team of passionate people eager to create without the oversight of a third-party. While some may consider that trade a disappointment, to Jensen and Dino, it was worth it. "I am so proud of what we achieved," Jensen said. "With one game we earned our independence."

When Jensen says "earned," the term expands far beyond profits. Game development is an arena where both money and creativity forcibly collide, often compelling compromise to see a project grow from mere conception to completion. But where other designers have been forced to bend their ideas to meet the will of their funders, Playdead chose a route of sacrifice, willfully reinvesting the success of one vision to lay a boundless foundation for what, hopefully, can be countless others.

As for what's next? With a beautiful new collector's edition for Limbo just recently released, and a few years of development already under their belt for a top secret new project, Jensen, Patti, and their team of twenty are still hard at work on what will be Playdead's first truly independent game, set for tentative release in the next few years. And Jensen couldn't be happier about it. "Now that we have achieved what I have always been fighting for, to be uncompromising and independent," he said. "I feel like we have only just begun."

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Zhukov

The Laughing Arsehole
Dec 29, 2009
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"I've never liked the idea of business people being in control of creative decisions, and I firmly believe that money and creativity shouldn't be mixed. Business people always want to measure progress but the fact is creativity cannot be measured."

Eaaarrghh.

That's a nice notion and all, but a bit of a silly one. If the creativity costs money then that bright, fluffy, angelic creativity is going to end up mixing with the sleazy, greasy, quantifiable money no matter what.

Still, I'm curious to see what they come out with next. Limbo was pretty cool.
 

SonicWaffle

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Oct 14, 2009
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Zhukov said:
That's a nice notion and all, but a bit of a silly one. If the creativity costs money then that bright, fluffy, angelic creativity is going to end up mixing with the sleazy, greasy, quantifiable money no matter what.
Money and creativity should be a partnership, but one in which interference is minimal. You just let the other guy do their own thing; it's much like a marriage that way. The wife doesn't ask why the husband spends so much time at the all-male gym and the husband doesn't ask why the wife goes on so many business trips with her hot boss. Everyone's happy.

It works both ways, of course. The money guys shouldn't be meddling in the creative side, but neither should the creative guys be allowed to run rampant. Alan Moore wanted to release, with every copy of LXG: Black Dossier, a vinyl record of him singing metal songs or something which were set in-universe of the story. He was pretty much told "No, Alan, you nutty old bastard. That would bankrupt us and awesome as it is, nobody really has record players anymore"
 

Zaik

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Jul 20, 2009
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Couldn't they have just taken all that money, quit, and started up a new company with actual money this time?

That seems a little more practical.
 

aba1

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Mar 18, 2010
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Zaik said:
Couldn't they have just taken all that money, quit, and started up a new company with actual money this time?

That seems a little more practical.
It is about owning what is yours. I dunno I guess you would have to be a artist to get it. I would imagine the game is like their baby to have it taken away would be devastating.
 

Albino Boo

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Jun 14, 2010
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Mike Kayatta said:
Unfortunately, around the same time that Playdead's flagship game hit the spotlight at GDC, its financial partners made it clear that they had different plans for the company: they wanted to sell, a decision that would have put Patti and Jensen in the exact situation they'd partnered to avoid.
They are either incredibly naive or incredibly arrogant. Why did they think people invested in the company in the first place? They wanted to make money, they took the risk that the game would suck and not make a profit on the bases that if the game was a success their share in the business would be worth more than they paid for it. Jensen and Dinos' attitude to their investors almost certainty convinced the investors that Jensen and Dino were not worth risking their current profits. If you bite the hand that feeds you don't be surprised when it stops feeding you.
 

ScruffyMcBalls

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Apr 16, 2012
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Know what? Power to those guys. Gotta love it when someone stands up for what is theirs. I never played Limbo (despite owning it for a while) because of the hype-machine surrounding it, but I still hope these dudes do well. A great story to make up for a shitty day.
 

mdqp

New member
Oct 21, 2011
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I am not sure I understand... They sold shares of the company to raise the required funds, and then bought them back after making the game, breaking even? The article isn't really clear at all for me, but maybe I am not familiar enough with how these things work...
 

joonsk

New member
Feb 26, 2011
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I always wonderded what made games so expensive to make. their are tons of free engines that you can use, and everything else can be made without money, I think.
 

Mike Kayatta

Minister of Secrets
Aug 2, 2011
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Mumorpuger said:
There's a collector's edition of Limbo??
Yeah, it's pretty nice, too: http://www.escapistmagazine.com/news/view/118208-Limbo-Special-Edition-Enters-The-Third-Dimension
 

Harbinger_

New member
Jan 8, 2009
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I'll keep my ears peeled for more developments of this new game. I loved playing Limbo even if it was keyboard-pounding frustrating sometimes.
 

Triaed

Not Gone Gonzo
Jan 16, 2009
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It started out like a pretty bleak article, but it ended up in a cheerful note. Even if they are "poor" they own what they love.
Good for them
 

Shinsei-J

Prunus Girl is best girl!
Apr 28, 2011
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A horrible business decision that risks all the material goods they've worked for, for the ability to do what they feel should be done.
Now that takes pride, and now I have huge respect for these guys.
 

mdqp

New member
Oct 21, 2011
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Triaed said:
It started out like a pretty bleak article, but it ended up in a cheerful note. Even if they are "poor" they own what they love.
Good for them
I doubt they are poor. If they own their company, than they probably could sell it for more money than I could ever make in my whole life. They probably don't have too much cash, though.
 

Mumorpuger

This is a...!
Apr 8, 2009
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Mike Kayatta said:
Mumorpuger said:
There's a collector's edition of Limbo??
Yeah, it's pretty nice, too: http://www.escapistmagazine.com/news/view/118208-Limbo-Special-Edition-Enters-The-Third-Dimension
How did I miss this? It was apparently reported on my favorite website, Escapistmagazine.com [http://www.escapistmagazine.com/].
 

mdqp

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Oct 21, 2011
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shinsei-J said:
A horrible business decision that risks all the material goods they've worked for, for the ability to do what they feel should be done.
Now that takes pride, and now I have huge respect for these guys.
If they hadn't done this, they would probably have enough money to start their next project with more freedom, while now they'll probably be forced to search for investors again. It's not just a bad business decision, they probably harmed their next project, too, just for fear of what could happen to their game... After it was already done. So it's a matter of ownership, they felt that nobody should profit from their work, even if it cost them a lot of money.

Or maybe I still don't understand what's going on, since the article is obscure, and nobody answered my previous post about how this thing exactly worked.