Codemasters: The Success Story

WHO ARE CODEMASTERS ?

• Codemasters are the largest independent video game developer and publisher in Europe.

• Codemasters are responsible for developing and publishing some of the most successful

• Codemasters are based in Leamington Spa, 25miles south east of Birmingham

computer game series of all time

MEET THE DARLINGS

• Two British brothers living in America

• Sent back from the USA for a British education

• Skived consistently to make games on the ZX Spectrum

• When confronted own up to making games and selling during school time

• Making more money than their father

“People have always been into games like football or mind games like chess. We thought that people like challenges

David DarlingAnd they are competitive, so we didn't think that humans where going to change.”

MEET THE DARLINGS

“In the beginning Video Games were new and people where comparing them to skateboards & Hula Hoops, asking if it was just a fad.... we were adamant that it wasn’t.”

David Darling

MEET THE DARLINGS

• Created games on cassette and sold through mail order

• Early Fame : releasing a Series Of Sports Simulators

• Published games through Mastertronic

• In 1986 the brothers form their owncompany: Codemasters

• Dad is chairman

“In the beginning Video Games where new and people where comparing them to skateboards & Hula Hoops,

David Darlingasking if it was just a fad. ... We were Adamant that it wasn't.”

THE EARLY GAMES

Dizzy Brian Lara Cricket

THE MASTERPEICE

THE MASTERPEICE

• Micro machines: Firms 1st Major Success 1991

• J-Cart Allowed 2 Extra Controls

•Only Produced By Codemasters

•Codemasters wins court battle against Nintendo over Game Genie cheat cartridge

“ When we made Micro Machines, I never realised quite how good it was... I think this game is a Masterpiece,

David DarlingWhich is something we didn't realise at the time.”

PIXAR OF GAMES

• Codemasters Produces & Publishes games

• One of Two British Firms to Develop & Publish

•Economic climate: Games = Cheap Entertainment

•American business- accounts for 10% of revenue

“ Think of Pixar, Miramax & New Line. Two of those companies were the major players in the field but they didn't

David Darling

Innovate. And of course Pixar even surpassed Disney. What makes us similar ? We’ve got great technology, flagship brands & an innovative culture.”

Dizzy Series

Some Codemaster Brands you may Recognise

WHERE THE COMPETITION WENT WRONG

• Eidos Big Brand game: Tomb Raider

•Eidos posts losses of £100 Million 2008

•Eidos bought out by Japanese publisher Square Enix 2009

•UK risks slipping from 3rd largest game developing nation to 5th.

“ As a publisher, you need to stay focused as to what you actually are. Eidos from the very conception had one big

David Darling

Game- Tomb Raider – and they milked that very well, but with the exception of Champ Manger series, they had very little else.”

THE PAY OFF

• Balderton Capital Buy remaining stake from founders.

•Codemasters sells for £84 Million, 2007

•Darling Brothers are awarded CBEs by the Queen for Services to the games industry, 2008

•Darling twins step down & retire

“ Regrets..Not expanding the company to the point where we could directly challenge big players like EA and Activision

David Darling

We had the creative people, but we didn't bring in the financial people to make the business big, we were just interested in making games.”

“You have to Continue to innovate. My fear is that the games industry is going to be too formulaic. We have to break out of the harness of retail and use digital distribution, letting creativity come to the fore. Honestly, I think the next ten years are going to be more exciting than the last ten.”

David Darling