Latest / The Game Business Show / The survival of Sackboy and Crackdown developer Sumo Digital
Transcript
- 0:00SPEAKER_02: The appetite for risk and investment for large,
- 0:02SPEAKER_02: big-budget AAA games are the sorts of games that we were doing five,
- 0:05SPEAKER_02: six, seven years ago, those 50 million budget games.
- 0:08SPEAKER_02: We haven't seen one of those come through the door for a long time.
- 0:13SPEAKER_01: We've downsized a lot in the UK.
- 0:16SPEAKER_01: Our Pune operations, I don't think we've lost any heads in Pune in the last two years, have we?
- 0:21SPEAKER_01: Maybe some attrition,
- 0:22SPEAKER_01: but we've not made any redundancies, I say, in India because they're so valuable.
- 0:27SPEAKER_02: A lot more of the work that we do no longer qualifies for the tax reliefs in the UK.
- 0:35SPEAKER_00: Hello and welcome to The Game Business Show.
- 0:38SPEAKER_00: This week's edition is sponsored by Exola.
- 0:41SPEAKER_00: And one of the big topics we've had on The Game Business Show has been this rise
- 0:44SPEAKER_00: in developers and publishers selling their games, DLC and add-ons directly to fans.
- 0:49SPEAKER_00: In fact,
- 0:50SPEAKER_00: the most Successful PC game studios are no longer relying solely
- 0:53SPEAKER_00: on traditional storefronts.
- 0:55SPEAKER_00: They're building direct-to-consumer channels to own the relationship
- 0:57SPEAKER_00: with their players, and create an additional revenue stream with better margins.
- 1:01SPEAKER_00: This approach already works at scale.
- 1:03SPEAKER_00: Over a thousand PC games sell direct through Exola,
- 1:06SPEAKER_00: generating more than a billion dollars in transactions in 2025 alone.
- 1:10SPEAKER_00: That sounds pretty good, doesn't it?
- 1:12SPEAKER_00: With Exola Publishing Suite,
- 1:13SPEAKER_00: studios can launch their own direct sales channel in days,
- 1:16SPEAKER_00: not months, using their existing team.
- 1:18SPEAKER_00: Ultimately,
- 1:18SPEAKER_00: the studios that thrive in the future will be the ones
- 1:20SPEAKER_00: that build their own storefronts and establish a direct relationship
- 1:23SPEAKER_00: with their communities.
- 1:25SPEAKER_00: You can find out more on the Exola website.
- 1:26SPEAKER_00: They even have an ebook explaining how a hybrid sales model works and what is and isn't allowed.
- 1:31SPEAKER_00: You can find a link to that on The Game Business newsletter,
- 1:34SPEAKER_00: which went out alongside this episode.
- 1:37SPEAKER_00: Now, back to our show.
- 1:39SPEAKER_00: Our interview this week is with Sumo Digital's new CEOs, Gary Dunn and Andy Stewart.
- 1:44SPEAKER_00: Now, Sumo, it's a work for hire.
- 1:46SPEAKER_00: And CoDev Studio.
- 1:47SPEAKER_00: But they were perhaps better known than most because it developed three Sonic racing games.
- 1:53SPEAKER_00: It made Crackdown 3.
- 1:54SPEAKER_00: It took over the Sat Boy and Little Big Panic franchise and made
- 1:57SPEAKER_00: the BAFTA winning PS5 launch game, Sat Boy, a big adventure.
- 2:00SPEAKER_00: They made big AAA games for big companies.
- 2:03SPEAKER_00: It's been quite the power in the UK scene.
- 2:06SPEAKER_00: In 2018,
- 2:07SPEAKER_00: the company went public and began a spending spree,
- 2:09SPEAKER_00: picking up numerous teams including the Chinese Room, Red Kite Games and Lab 42.
- 2:13SPEAKER_00: It also opened numerous offices.
- 2:15SPEAKER_00: It even set up its own publishing label,
- 2:17SPEAKER_00: Secret Mode, which is part of a bigger push into creating wholly owned original IP.
- 2:22SPEAKER_00: In 2021, it was acquired by Tencent, all designed to accelerate this.
- 2:27SPEAKER_00: But the industry struggles were beginning and that impacted Sumo.
- 2:30SPEAKER_00: It abandoned plans to develop its own IP,
- 2:32SPEAKER_00: sold off its publishing label, sold off the Chinese room and cut back its team size.
- 2:37SPEAKER_00: Meanwhile,
- 2:37SPEAKER_00: company founders Carl Cavers and Paul Porter exited the business with Gary
- 2:41SPEAKER_00: and Andy's taking over.
- 2:43SPEAKER_00: Sumo was once one of the UK's most influential video game studios,
- 2:47SPEAKER_00: but it's been six years since that BAFTA winning Sat Boy game.
- 2:50SPEAKER_00: Sega made its last Sonic racing game itself.
- 2:53SPEAKER_00: So where are they now?
- 2:55SPEAKER_00: I alongside our producer Richard went over to Sumo's HQ in Sheffield
- 2:58SPEAKER_00: to find out exactly that and you might be surprised by what they're thinking
- 3:02SPEAKER_00: and how they've adapted to the modern video game industry.
- 3:05SPEAKER_00: Check it out.
- 3:06SPEAKER_00: Hello, Gary.
- 3:07SPEAKER_00: Hello, Andy.
- 3:07SPEAKER_00: Welcome to the show.
- 3:08SPEAKER_00: Hi.
- 3:09SPEAKER_00: Lovely offices you've got here.
- 3:10SPEAKER_00: How are you set up now?
- 3:11SPEAKER_00: Do people work from home?
- 3:12SPEAKER_01: Is this a remote studio?
- 3:14SPEAKER_01: Um, it's a bit of a blend.
- 3:15SPEAKER_01: I mean, obviously, it's one of a number of studios we have.
- 3:17SPEAKER_01: Yeah.
- 3:18SPEAKER_01: Sheffield's is more remote.
- 3:20SPEAKER_01: Redkart in Leeds is completely in the office.
- 3:23SPEAKER_01: Ah.
- 3:24SPEAKER_01: Leamington Studios and Nottingham Studios are also blended.
- 3:28SPEAKER_01: So we measure output, not input, is one of our sort of mantras.
- 3:32SPEAKER_01: The workflows are very much focused on what works for the teams and what works for
- 3:36SPEAKER_01: the customers.
- 3:38SPEAKER_00: Last time I spoke to Sumo quite a lot, you just picked up BAFTAs for Sackboy.
- 3:42SPEAKER_00: You were making your own games,
- 3:44SPEAKER_00: publishing third-party games, part of a $1.2, $1.3 billion acquisition from Tencent.
- 3:52SPEAKER_00: We were like heady times, not just for TechSumo, but for the whole industry, obviously.
- 3:56SPEAKER_00: You had to cut back, you reduced the team, you refocused your business.
- 3:59SPEAKER_00: I'd say lots of companies have had to do this,
- 4:01SPEAKER_00: but what specifically, what led you to having to do that?
- 4:04SPEAKER_02: It was a great question.
- 4:05SPEAKER_02: I think if I go back to when I joined at Sumo, Which was nine years ago now.
- 4:11SPEAKER_02: I think around 80% of our revenue was two or three clients, the Microsofts of the world, Sony's.
- 4:19SPEAKER_02: And obviously after the Tencent acquisition, when we were bought, it's no secret.
- 4:24SPEAKER_02: A lot of large publishers started reining in on what they were spending money on.
- 4:28SPEAKER_02: So we had to think differently.
- 4:30SPEAKER_02: Where we are today is we've got a much more diverse portfolio of clients.
- 4:34SPEAKER_02: We've probably got 30 projects on the go.
- 4:39SPEAKER_02: Dozens of clients, really, really huge names.
- 4:43SPEAKER_02: We've had to rethink how we go about business development and our partnerships.
- 4:48SPEAKER_02: We've had to react to changing player demands,
- 4:52SPEAKER_02: so more players are They're still playing video games,
- 4:55SPEAKER_02: but they're playing fewer AAA titles.
- 4:58SPEAKER_02: There's more concentration there.
- 5:00SPEAKER_02: So we focused our strategy now on supporting those evergreen titles from a codev capacity.
- 5:07SPEAKER_02: The appetite for risk and investment For large,
- 5:09SPEAKER_02: big budget AAA games,
- 5:11SPEAKER_02: the sorts of games that we were doing five,
- 5:14SPEAKER_02: six, seven years ago, those 50 million budget games.
- 5:17SPEAKER_02: We haven't seen one of those come through the door for a long time.
- 5:21SPEAKER_02: But what we are seeing is a bit of appetite.
- 5:24SPEAKER_02: We have an appetite for that double A space, video games with a 15 million budget.
- 5:31SPEAKER_02: We rethink how we're making full games as well and we've got several clients
- 5:36SPEAKER_02: and projects on the go in that kind of ballpark.
- 5:39SPEAKER_02: So yeah, we've had to kind of rethink a lot about the business model and how we go about it.
- 5:44SPEAKER_02: And we've had to shape the business along the way.
- 5:47SPEAKER_02: As you rightly point out,
- 5:48SPEAKER_02: we're not doing publishing anymore,
- 5:49SPEAKER_02: but it doesn't mean we've lost all of that publishing experience and skills
- 5:54SPEAKER_02: that we developed during that journey.
- 5:57SPEAKER_02: So we always try and bring a publisher mindset to the projects we're working on as well.
- 6:01SPEAKER_01: You know, we've been, our master, if you like, has been working on Top Flight IP.
- 6:07SPEAKER_01: And our mantra has been, we always want to maximize people's IP.
- 6:10SPEAKER_01: And I think, you know, we're just, we're using that to our best effect now.
- 6:15SPEAKER_01: Because I think in today's investment landscape,
- 6:19SPEAKER_01: people are rolling back to their IPs that they know and trust
- 6:23SPEAKER_01: and have brought them revenue in.
- 6:24SPEAKER_01: And that fits with our expertise.
- 6:27SPEAKER_01: You know, we worked well.
- 6:28SPEAKER_01: I mean, last week,
- 6:29SPEAKER_01: I think last night,
- 6:31SPEAKER_01: I don't know when it was shot,
- 6:31SPEAKER_01: but You're speaking to Sheldon Carter at Digital Extremes.
- 6:35SPEAKER_01: You know,
- 6:35SPEAKER_01: we've got a long relationship working with them
- 6:37SPEAKER_01: on Warframe now that's going really well.
- 6:39SPEAKER_01: And, you know,
- 6:40SPEAKER_01: it's that long-term partnership that we're used to and we're building on to lean
- 6:44SPEAKER_01: into more.
- 6:45SPEAKER_01: Whereas, Andy said five years ago, it was...
- 6:48SPEAKER_01: 50 million dollar games, you just don't see an RFP for anything like that anymore.
- 6:52SPEAKER_01: It literally does not exist in what we can see.
- 6:56SPEAKER_01: But it's about making great games at a lower price point and that also fits
- 7:01SPEAKER_01: into our mantra of let's get something great,
- 7:03SPEAKER_01: the second to second gameplay great and let's get it into the players hands quickly
- 7:08SPEAKER_01: and then let's build from there.
- 7:09SPEAKER_01: So that's where we want to take our sort of full game development journey with our clients.
- 7:14SPEAKER_00: My plan for that question line-up was to go, hey, what happened?
- 7:18SPEAKER_00: And B, who would you say you are now?
- 7:20SPEAKER_00: You've skipped me to the second question, so thank you for that.
- 7:22SPEAKER_00: Right.
- 7:23SPEAKER_00: So you were these primary developers on these sort
- 7:24SPEAKER_00: of big franchise games like Sat Boy, like Crackdown.
- 7:27SPEAKER_00: Like...
- 7:29SPEAKER_00: Sonic Racing going further back.
- 7:32SPEAKER_00: Then I see Sega's taken Sonic Racing in-house.
- 7:35SPEAKER_00: Is that not Sumo anymore?
- 7:36SPEAKER_00: That's not really what you're about?
- 7:40SPEAKER_01: I think we've got broader.
- 7:41SPEAKER_01: I don't think we've stopped doing that.
- 7:43SPEAKER_01: We are still making a number of full game experience for partners, including Tencent.
- 7:50SPEAKER_01: So it's not something we've stopped doing.
- 7:52SPEAKER_01: We've just seen,
- 7:54SPEAKER_01: you know,
- 7:55SPEAKER_01: The appetite for giving large contracts to third parties diminish over
- 8:01SPEAKER_01: the last three to four years.
- 8:03SPEAKER_00: Why is that?
- 8:04SPEAKER_00: Is it just because companies are scanning back and focusing in?
- 8:07SPEAKER_00: Are they protecting their own talent and their own teams?
- 8:10SPEAKER_01: I think that's part of that.
- 8:11SPEAKER_01: I think it's all part of, you know, people are risk averse.
- 8:15SPEAKER_01: And when you're in a tough market, people are just trying to control things more, I think.
- 8:18SPEAKER_01: But, you know,
- 8:19SPEAKER_01: we're always there to provide a wraparound service to make sure,
- 8:24SPEAKER_01: you know, we maximize the client's IP, you know.
- 8:27SPEAKER_01: So, and it's what we've done.
- 8:29SPEAKER_01: So many times.
- 8:30SPEAKER_01: I mean, when you look at the work we did with Sonic,
- 8:33SPEAKER_01: that was all about taking the brand and doing games.
- 8:37SPEAKER_01: You know, we did Sega Superstars Tennis, we did Sega Superstars Racing.
- 8:40SPEAKER_01: None of it was the little blue fella running.
- 8:43SPEAKER_01: But, you know, they were all incremental revenue streams.
- 8:45SPEAKER_01: And that's where we work really well.
- 8:48SPEAKER_01: You know,
- 8:48SPEAKER_01: very brand authentic,
- 8:50SPEAKER_01: very creative and different, and doing different things with the brand.
- 8:53SPEAKER_01: And that's the place we feel strong and, you know, we want to grow again in that area.
- 8:59SPEAKER_00: I loved, I helped that my brother was on the team, but I loved the Sackboy game.
- 9:03SPEAKER_00: I thought it was amazing.
- 9:04SPEAKER_00: And I would love to see that team do another game of that type,
- 9:07SPEAKER_00: whether it's a Sackboy game or another title.
- 9:09SPEAKER_00: It would be nice to see some of that, right?
- 9:12SPEAKER_00: Absolutely.
- 9:12SPEAKER_01: And we'd love to see that team You know,
- 9:15SPEAKER_01: they've been doing a lot of work,
- 9:17SPEAKER_01: you know, and most of it, sadly, we can't talk about.
- 9:21SPEAKER_01: Some of it you'll see soon.
- 9:22SPEAKER_01: No, of course.
- 9:23SPEAKER_01: But, you know,
- 9:23SPEAKER_01: they are there and available to do work on great IPs,
- 9:27SPEAKER_01: and that's where we're leaning into right now.
- 9:29SPEAKER_01: I'm sure you'll see something exciting soon.
- 9:31SPEAKER_00: I think it might have been you, Andy, that said it.
- 9:34SPEAKER_00: I read the Games in the Shop Biz interview you did.
- 9:35SPEAKER_00: You talked about possibly even co-funding some of that stuff.
- 9:38SPEAKER_00: Is that something that's, you were talking about that at GDC?
- 9:39SPEAKER_00: Is that something that's still in the foot?
- 9:43SPEAKER_02: Yeah, absolutely.
- 9:44SPEAKER_02: As Gary says, we're looking at any opportunity to maximize our partner's IP.
- 9:48SPEAKER_02: That's what we do.
- 9:49SPEAKER_02: We can do that from a codev capacity.
- 9:51SPEAKER_02: We can do that from a full game capacity.
- 9:53SPEAKER_02: What we're trying to do is break down barriers to investing
- 9:58SPEAKER_02: So first things we've looked at is how we make games.
- 10:02SPEAKER_02: Can we make a really compelling experience for cheaper?
- 10:06SPEAKER_02: Sometimes that isn't enough.
- 10:07SPEAKER_02: So actually can Sumo provide some of the funding from a co-funding perspective
- 10:11SPEAKER_02: to Make those investment decisions easier for a partner.
- 10:15SPEAKER_02: Make sure we're sharing risk and reward.
- 10:17SPEAKER_02: We're also using the conversations we're having with our partners.
- 10:21SPEAKER_02: There's more appetite for that.
- 10:23SPEAKER_02: They want a partner, a development partner with skin in the game.
- 10:26SPEAKER_02: So it's certainly conversations we're having at the moment.
- 10:29SPEAKER_02: We have some exciting projects underway.
- 10:32SPEAKER_02: And yeah, as Gary says, it's frustrating.
- 10:34SPEAKER_02: We can't always tell you about them right now,
- 10:35SPEAKER_02: but I don't think you're going to have to wait too long at all
- 10:39SPEAKER_02: to see something good out of the team you just mentioned and Sumo here.
- 10:44SPEAKER_00: How much of these changes that you've gone through,
- 10:45SPEAKER_00: this sort of shift has come from Tencent,
- 10:47SPEAKER_00: this strategic focus that you're now making,
- 10:50SPEAKER_00: how much that's come from Tencent and how much of that came from Sumo?
- 10:53SPEAKER_02: Yeah, we're definitely very much masters of our own destiny.
- 10:56SPEAKER_02: If you spoke to other Tencent portfolio companies,
- 11:00SPEAKER_02: which I know you have, you know that Tencent's model is very much hands-off.
- 11:03SPEAKER_02: They let businesses run their own way.
- 11:05SPEAKER_02: And that still stands.
- 11:08SPEAKER_02: When we made the decision to move away from publishing,
- 11:11SPEAKER_02: that was done with Tencent, and we were all aligned on that.
- 11:16SPEAKER_02: We weren't able to give Secret Mode the care and investment that it needed.
- 11:21SPEAKER_02: You see what's happening at Secret Mode now, and that's great.
- 11:24SPEAKER_02: We're delighted to see what's happening over there.
- 11:26SPEAKER_02: It wasn't right for us at that time,
- 11:30SPEAKER_02: but that was a decision that we were very much behind,
- 11:33SPEAKER_02: and obviously Tencent helped us with that as well.
- 11:36SPEAKER_00: I wasn't going to ask about Secret Mode, what a journey they've been on.
- 11:38SPEAKER_00: Like when they came out of Sumo, I was genuinely, I know, independent publishing is difficult.
- 11:43SPEAKER_00: You need to find a hit.
- 11:44SPEAKER_00: And then while they're working on Star Wars, they're opening a studio,
- 11:47SPEAKER_02: like they've sort of...
- 11:48SPEAKER_02: It's great.
- 11:49SPEAKER_02: And we have a great partnership with Secret Mode.
- 11:52SPEAKER_02: We do a lot of work for them.
- 11:53SPEAKER_02: We're very close.
- 11:54SPEAKER_02: We'll always be friends.
- 11:57SPEAKER_02: It is fantastic to see what's happening with them,
- 11:59SPEAKER_02: and we'd have loved to have done the same thing with them now,
- 12:02SPEAKER_02: but it wasn't Sumo's business.
- 12:05SPEAKER_02: We're comfortable focusing on what we're best at,
- 12:09SPEAKER_02: which is supporting the best AAA IPs out there,
- 12:15SPEAKER_02: making new games with our best teams, like the Sackboy team, as you say.
- 12:19SPEAKER_02: And yeah,
- 12:20SPEAKER_02: that's what Sumo's core is,
- 12:21SPEAKER_02: and that's what we're best at, and that's what we'll keep doing.
- 12:24SPEAKER_00: Well, focus is the thing.
- 12:25SPEAKER_00: I know every company's going through this,
- 12:27SPEAKER_00: has gone through this sort of journey of the industry,
- 12:29SPEAKER_00: where things were very good,
- 12:30SPEAKER_00: everyone's looking to expand,
- 12:31SPEAKER_00: and now everyone's looking to focus in on what they do very well in Sumo have.
- 12:35SPEAKER_00: Historically, this is what Sumo's about.
- 12:37SPEAKER_00: Um, so it makes sense.
- 12:38SPEAKER_00: But at the same time,
- 12:40SPEAKER_00: Having your own IP,
- 12:41SPEAKER_00: being able to work on your own,
- 12:42SPEAKER_00: something that's yours,
- 12:43SPEAKER_00: and not only is it an exciting thing to do from a creative point of view,
- 12:46SPEAKER_00: I know working on other big brands are also exciting,
- 12:48SPEAKER_00: but also there's an element of,
- 12:49SPEAKER_00: that's got value to it from a business perspective, right?
- 12:52SPEAKER_00: If you've got your own brands and your own games,
- 12:54SPEAKER_00: and when you're always sort of reliant on other companies,
- 12:57SPEAKER_00: you're kind of being buffeted a bit by the winds of the industry,
- 12:59SPEAKER_00: which lately has been Maybe not necessarily,
- 13:03SPEAKER_00: not as badly this year as in previous years, but lately has been pretty tough.
- 13:06SPEAKER_02: Well, it's a good point,
- 13:07SPEAKER_02: but it's a bit of a misconception that we're not doing our own IP still and
- 13:12SPEAKER_02: that we're not, you know, doing full games.
- 13:14SPEAKER_02: So Sima is definitely still very much in the full game.
- 13:17SPEAKER_02: And we are also doing our own IP.
- 13:20SPEAKER_02: Again, projects that we can't necessarily talk about.
- 13:23SPEAKER_02: What we're not doing is fully funding our own IP.
- 13:26SPEAKER_02: And that's the key sort of nuance.
- 13:28SPEAKER_02: And that's where co-funding comes in.
- 13:30SPEAKER_02: If we can create something, whether it's with a partner Tencent have been.
- 14:00SPEAKER_01: Hugely supportive of our new IP, um, aspirations.
- 14:04SPEAKER_01: And, you know, we've, you know, a number of projects that we've done with them and are underway.
- 14:09SPEAKER_01: We're hoping to be able to tell you more soon.
- 14:10SPEAKER_01: Yeah.
- 14:11SPEAKER_01: As Andy said,
- 14:11SPEAKER_01: the focus,
- 14:13SPEAKER_01: and it's amazing,
- 14:13SPEAKER_01: because a lot of people still come up to us at shows and go,
- 14:16SPEAKER_01: but you're not doing your own IP.
- 14:17SPEAKER_01: And it's like, we are, we're just not, we're just not the principal financer of it.
- 14:22SPEAKER_01: No.
- 14:23SPEAKER_01: You know, because that's not the model we've got anymore.
- 14:26SPEAKER_01: We partner finance.
- 14:27SPEAKER_01: We work for hire, and we can create your IP for you from our creativity from scratch.
- 14:33SPEAKER_01: We know we can do it.
- 14:35SPEAKER_01: It's the nuance of the funding is not what we're going to lead.
- 14:38SPEAKER_00: Obviously,
- 14:38SPEAKER_00: you're one of the big UK development teams,
- 14:42SPEAKER_00: and it's been a big year for UK-made video games.
- 14:44SPEAKER_00: We've got some,
- 14:46SPEAKER_00: you know, Forza,
- 14:46SPEAKER_00: and we've had 007 First Light a little bit,
- 14:49SPEAKER_00: and Lego Batman, and GTA, and Star Wars, and Hell Let Loose.
- 14:53SPEAKER_00: How is the UK scene for you?
- 14:54SPEAKER_00: Obviously, there's been a lot of investment into this scene.
- 14:56SPEAKER_00: How's it going for you?
- 14:58SPEAKER_02: Well, I still think the UK is a jewel in the crown of global gaming personally.
- 15:03SPEAKER_02: We have so much talent here.
- 15:05SPEAKER_02: We have so much pedigree.
- 15:07SPEAKER_02: We need to do what we can to protect that.
- 15:09SPEAKER_02: One of the things actually we're seeing at the moment is A lot more of the work
- 15:14SPEAKER_02: that we do no longer qualifies for the tax reliefs in the UK.
- 15:21SPEAKER_02: Part of our strategy as well as doing full games is
- 15:23SPEAKER_02: to support these evergreen titles from a codev capacity That doesn't always qualify
- 15:28SPEAKER_02: an existing title with a non-UK based publisher and we're trying to pitch for work
- 15:35SPEAKER_02: on those projects and it's not always qualifying for the tax release.
- 15:39SPEAKER_02: So I think around 60% of the work we did last year didn't qualify for VJEC.
- 15:46SPEAKER_00: Oh wow.
- 15:47SPEAKER_02: That puts us at a huge disadvantage globally.
- 15:49SPEAKER_02: So reform to VJEC is definitely something that,
- 15:52SPEAKER_02: you know,
- 15:52SPEAKER_02: through our industry bodies,
- 15:54SPEAKER_02: we need to tackle with the government because as more and more players play fewer
- 15:58SPEAKER_02: and fewer titles, it's only going in that direction, arguably.
- 16:02SPEAKER_02: And what we need to recognize is,
- 16:03SPEAKER_02: you know,
- 16:04SPEAKER_02: The video games tax relief should support the whole spectrum of video games,
- 16:08SPEAKER_02: right down to those indie developers.
- 16:10SPEAKER_02: It's right that it's a bigger incentive for them.
- 16:15SPEAKER_02: That's something we're very supportive of,
- 16:17SPEAKER_02: but also the larger Companies that drive employment in video gaming in
- 16:22SPEAKER_02: the UK and the work they're doing,
- 16:24SPEAKER_02: you know,
- 16:24SPEAKER_02: needs the same level of support that they get in Canada,
- 16:27SPEAKER_02: where, you know, in Canada, it's completely different.
- 16:29SPEAKER_02: You just put, in some states, you can just put your payroll through and get the tax relief.
- 16:33SPEAKER_02: In the UK,
- 16:34SPEAKER_02: you've got to jump through so many more hoops and you often find
- 16:37SPEAKER_02: that what you're doing doesn't qualify.
- 16:39SPEAKER_00: I guess as industry becomes more globalized and game development is more globalized,
- 16:43SPEAKER_00: that's going to become more of an issue.
- 16:45SPEAKER_02: It's definitely something that we are speaking to government with and
- 16:49SPEAKER_02: the industry bodies are and we speak to them regularly.
- 16:52SPEAKER_02: So that would be the single biggest way to continue to support UK Gaming.
- 16:57SPEAKER_00: Is it true that you've got like a team or you have a way of sort
- 17:01SPEAKER_00: of identifying dormant IPs that
- 17:03SPEAKER_01: you can pitch to people?
- 17:04SPEAKER_01: Yeah.
- 17:05SPEAKER_01: So we've been looking in the last few months at a whole lot.
- 17:09SPEAKER_01: We get so much data through our tools that we've had because remember we were a publisher.
- 17:14SPEAKER_01: So we have a lot of market data,
- 17:16SPEAKER_01: and we've used that to start analyzing which IPs we should actively go
- 17:21SPEAKER_01: and proactively pitch for.
- 17:23SPEAKER_01: So there's a whole package of work that we're doing now,
- 17:25SPEAKER_01: so what we're actually looking for is to be able to analyze an IP, say, right,
- 17:31SPEAKER_01: this is an IP that's done these unit sales over the past,
- 17:36SPEAKER_01: there's no known development for it, yet It interfaces with our excellence.
- 17:42SPEAKER_01: So, you know, horror, family, platforming, adventure.
- 17:46SPEAKER_01: And where we can see that intersection, we're happy to co-fund.
- 17:49SPEAKER_01: You know,
- 17:50SPEAKER_01: we're happy to do the hard work to create that commercially viable win-win proposal
- 17:57SPEAKER_01: for the publisher that we'll do.
- 17:58SPEAKER_01: We'll take that to them and say,
- 18:00SPEAKER_01: we believe we can both make this much money through this dormant IP.
- 18:05SPEAKER_01: We're prepared to put this much skin in the game.
- 18:07SPEAKER_01: If you join us, we're both aligned.
- 18:10SPEAKER_01: And we believe we can make a great commercial outcome for both of us.
- 18:14SPEAKER_00: How has the departure of Carl and some of the other leaders of Sumo changed things?
- 18:19SPEAKER_00: Has it changed things?
- 18:20SPEAKER_00: Has it changed things?
- 18:21SPEAKER_00: That's a really good question, isn't it?
- 18:24SPEAKER_01: I don't know.
- 18:24SPEAKER_01: I suppose it is.
- 18:25SPEAKER_01: Andy and I are two different individuals to Carl and Paul.
- 18:29SPEAKER_01: You know, we've both known them 10 years.
- 18:31SPEAKER_01: I've known them 20.
- 18:32SPEAKER_01: They're friends as well as colleagues and bosses.
- 18:37SPEAKER_01: I don't think the ethos in Sumo has changed A lot.
- 18:41SPEAKER_01: We've evolved.
- 18:42SPEAKER_01: We haven't had a revolution,
- 18:44SPEAKER_01: but we have evolved to meet the changing needs of the marketplace,
- 18:48SPEAKER_01: I think is the best way to say.
- 18:49SPEAKER_02: Yeah.
- 18:50SPEAKER_02: I mean, I look back on the last year and I think,
- 18:52SPEAKER_02: you know,
- 18:53SPEAKER_02: as you say,
- 18:54SPEAKER_02: the way that we treat our people hasn't changed, that,
- 18:56SPEAKER_02: you know,
- 18:57SPEAKER_02: our fundamentals of our cultural identity hasn't changed,
- 19:00SPEAKER_02: but the way we go about business, I think we have changed quite a lot.
- 19:04SPEAKER_02: You know, we've had We have to react to what the market is.
- 19:07SPEAKER_02: The market is not the same place as it was three years ago.
- 19:10SPEAKER_02: So I think a lot of what we do under the hood has improved.
- 19:16SPEAKER_02: As Gary said, it's not fundamentally changed Of course, but it's certainly improved.
- 19:22SPEAKER_02: The last year has been a real journey,
- 19:25SPEAKER_02: but certainly in the last six months,
- 19:26SPEAKER_02: we've seen real fruits of the changes that Gary and I have put in place and
- 19:31SPEAKER_02: the conversations we're having with our partners now and some of the projects
- 19:36SPEAKER_02: that we've recently onboarded, again, we're desperate to tell you about them.
- 19:40SPEAKER_02: And in the next few years, we will tell you about them, I'm sure.
- 19:43SPEAKER_02: But we have new partners working with Sumo that are Genre leaders in what they do
- 19:50SPEAKER_02: and Sumo is now supporting their games for them and their partners
- 19:53SPEAKER_02: that we've never worked with before.
- 19:55SPEAKER_00: You say 30?
- 19:57SPEAKER_02: We've got about 30 projects on the go.
- 19:59SPEAKER_02: Wow.
- 20:00SPEAKER_02: We used to have, well, Sheffield as a studio used to have two or three.
- 20:05SPEAKER_02: Other studios more, depending on the model.
- 20:08SPEAKER_02: But yeah, so I'd say around 30 projects on the go at the moment of all different sizes.
- 20:12SPEAKER_02: And we also have our business in Gateshead,
- 20:15SPEAKER_02: Atomhawk, which obviously has smaller projects as well.
- 20:17SPEAKER_02: So they've got their own set of 20, 30 projects as well.
- 20:20SPEAKER_02: But that's a slightly different model.
- 20:22SPEAKER_02: They're a fantastic creative art house.
- 20:25SPEAKER_02: But yeah,
- 20:25SPEAKER_02: in terms of game development,
- 20:27SPEAKER_02: and it could be a small You know,
- 20:29SPEAKER_02: engineering project,
- 20:31SPEAKER_02: or it could be a full game project that spans two or three years.
- 20:34SPEAKER_02: We do it all.
- 20:35SPEAKER_02: We have genre specialist pods across the business as well, but we also work across platform.
- 20:40SPEAKER_02: And I know you've had on your show some of the cloud platforms.
- 20:43SPEAKER_00: Yeah, lately, yeah.
- 20:44SPEAKER_02: And yeah, we've got amazing projects going on with some of them.
- 20:47SPEAKER_02: Again, I won't name them,
- 20:48SPEAKER_02: but there's only a few of them, so you'll probably figure out who some of them are.
- 20:50SPEAKER_02: But we're working across all platforms as well, and that's what Sumo's good at.
- 20:56SPEAKER_02: We do the difficult really well,
- 20:58SPEAKER_02: and our clients come to us when they've got a challenging project and they want help
- 21:03SPEAKER_02: from someone like Sumo.
- 21:04SPEAKER_00: I guess because you have all these different clients,
- 21:06SPEAKER_00: you have to be on the Quite on the cutting edge,
- 21:08SPEAKER_00: you have to sort of,
- 21:10SPEAKER_00: imagine sometimes they go to you, can you make a streaming game?
- 21:12SPEAKER_00: And you go, yeah, I'm sure we can.
- 21:14SPEAKER_01: Yeah, I mean,
- 21:15SPEAKER_01: a great example of this is when Arm,
- 21:17SPEAKER_01: about a year and a half ago,
- 21:18SPEAKER_01: Arm came to us and said,
- 21:19SPEAKER_01: we've got this great neural AI graphics chip We're going to launch at the back end
- 21:23SPEAKER_01: of 26.
- 21:25SPEAKER_01: We've never done it before, but we want to launch with a game.
- 21:31SPEAKER_01: We don't even know where, you know, we're not game makers.
- 21:34SPEAKER_01: We need to help us.
- 21:35SPEAKER_01: This technology doesn't really exit.
- 21:37SPEAKER_01: We're making it over the next 18 months.
- 21:39SPEAKER_01: It's on a road map.
- 21:40SPEAKER_01: But, you know, we're Unreal Gold partners, we're experts, and it was tough.
- 21:44SPEAKER_01: You know,
- 21:44SPEAKER_01: we're making a game for a phone that we started making this game in the beginning
- 21:49SPEAKER_01: of 2025.
- 21:49SPEAKER_01: The phone's not out yet.
- 21:51SPEAKER_01: I think it's launched in Shanghai in next month.
- 21:55SPEAKER_01: You know, it's public now.
- 21:56SPEAKER_01: We can talk about it.
- 21:57SPEAKER_01: And, you know, Neural Dawn is groundbreaking.
- 22:01SPEAKER_01: You know,
- 22:02SPEAKER_01: Megalights on mobile,
- 22:03SPEAKER_01: it wasn't supposed to be You know,
- 22:06SPEAKER_01: it wasn't supposed to be possible,
- 22:07SPEAKER_01: the sort of graphical fidelity that we're seeing,
- 22:09SPEAKER_01: and the technology we've employed is great,
- 22:12SPEAKER_01: and it's been great to partner with them,
- 22:14SPEAKER_01: but that's,
- 22:15SPEAKER_01: Andy used the phrase,
- 22:15SPEAKER_01: we do the difficult,
- 22:16SPEAKER_01: but that's one of the things we're known for,
- 22:18SPEAKER_01: because that's not new,
- 22:19SPEAKER_01: because we're there,
- 22:21SPEAKER_01: you know, we did,
- 22:22SPEAKER_01: going back further,
- 22:23SPEAKER_01: we did Kinect Sports on Kinect for Microsoft,
- 22:25SPEAKER_01: and that was sort of,
- 22:27SPEAKER_01: Can you try and do something with this camera that's entertaining, please?
- 22:31SPEAKER_00: The story you were telling me before you were even here when it was working with,
- 22:35SPEAKER_00: was it, Sumo on the football game and Xbox Live.
- 22:40SPEAKER_00: Yes, of the Codemasters.
- 22:41SPEAKER_00: And that was a similar story where you were saying, we can't do it.
- 22:45SPEAKER_00: And then it was Xbox that was saying to you, but these folks might be
- 22:48SPEAKER_01: able to.
- 22:49SPEAKER_01: And they did.
- 22:49SPEAKER_01: And we've done that.
- 22:51SPEAKER_01: We've got a history of doing that.
- 22:52SPEAKER_01: And it's...
- 22:54SPEAKER_01: We love a challenge.
- 22:54SPEAKER_01: We love, you know, we've done numerous launch titles.
- 22:57SPEAKER_01: Obviously,
- 22:58SPEAKER_01: Sackboy was a,
- 22:59SPEAKER_01: was a launch title on PlayStation 5, which we delivered on time in COVID.
- 23:02SPEAKER_01: You know,
- 23:03SPEAKER_01: a lot of time at that point,
- 23:05SPEAKER_01: things were falling out of that launch slate, you know, very quickly.
- 23:08SPEAKER_01: And, you know,
- 23:09SPEAKER_01: we weren't,
- 23:09SPEAKER_01: you know,
- 23:10SPEAKER_01: we were working from home and we were determined to deliver
- 23:12SPEAKER_01: and we did something we're really proud of under pretty exceptional circumstances.
- 23:16SPEAKER_01: Yeah.
- 23:17SPEAKER_01: And I think that's what One of our strengths is that high-quality reliability
- 23:23SPEAKER_01: that I think now plays into where a lot of publishers need to be.
- 23:28SPEAKER_01: They need someone that can deliver that quality and know they're gonna get it,
- 23:33SPEAKER_01: because it's all right going...
- 23:36SPEAKER_01: There's a bit of a race to the bottom in the development industry at the moment.
- 23:39SPEAKER_01: Okay, so that's people undercutting you.
- 23:41SPEAKER_01: You know,
- 23:42SPEAKER_01: we see a lot of stories where people have gone for the cheaper option,
- 23:45SPEAKER_01: but actually it's either been really late or it's never seen the light of day.
- 23:49SPEAKER_01: We've had people come back to us and go, You know that thing that you were too expensive for?
- 23:53SPEAKER_01: Well, could you please now rebid?
- 23:56SPEAKER_00: I was going to ask about this because obviously it's cheaper to outsource
- 23:59SPEAKER_00: to Eastern Europe, I guess, and certain Asian territories and things like that.
- 24:04SPEAKER_00: And obviously you're doing this, I mean,
- 24:05SPEAKER_00: Sheffield's not the most expensive place in the world,
- 24:07SPEAKER_00: but it's, it's,
- 24:08SPEAKER_00: you are,
- 24:09SPEAKER_00: it's obviously,
- 24:09SPEAKER_00: it's not,
- 24:09SPEAKER_00: it's not California,
- 24:11SPEAKER_00: but it's,
- 24:11SPEAKER_00: it's, it's probably pricier to make games here than it is in other markets.
- 24:15SPEAKER_00: You may have just answered my question, but how are you reacting to that?
- 24:19SPEAKER_01: Well, don't forget, Sumo's second oldest studio is our Pune studio.
- 24:25SPEAKER_01: It's 20 years old next year.
- 24:27SPEAKER_01: It's 2007 we launched Pune.
- 24:29SPEAKER_01: So our relationship with them, they're literally part of our fabric.
- 24:34SPEAKER_01: They're not a second thought.
- 24:35SPEAKER_01: They're not an outsourcer.
- 24:37SPEAKER_01: They're integrated into our teams and our developers
- 24:40SPEAKER_01: in Pune sit alongside our UK-based developers as absolute equals and do
- 24:46SPEAKER_01: the same workflows, the same production methodologies.
- 24:49SPEAKER_01: So that's our model,
- 24:51SPEAKER_01: you know,
- 24:51SPEAKER_01: and we find it useful and we've downsized a lot In the UK,
- 24:57SPEAKER_01: our Pune operations,
- 24:58SPEAKER_01: I don't think we've lost any heads in Pune in the last two years, have we?
- 25:02SPEAKER_01: Maybe some attrition,
- 25:03SPEAKER_01: but not,
- 25:04SPEAKER_01: you know, we've not made any redundancies in India because they're so valuable.
- 25:09SPEAKER_01: And, you know, low-cost geo is part of staying competitive.
- 25:14SPEAKER_02: I was just going to add also about how we make games.
- 25:17SPEAKER_02: We approach games in a different way than we used to.
- 25:21SPEAKER_02: Keeping the development team lean until you've found the fun.
- 25:25SPEAKER_02: Not scaling up too big too quickly.
- 25:28SPEAKER_02: That's another thing I know a lot of people are talking about and we've been doing
- 25:31SPEAKER_02: that as well.
- 25:32SPEAKER_02: What we're not seeing at the moment is,
- 25:36SPEAKER_02: you know,
- 25:36SPEAKER_02: go back 18 months ago,
- 25:38SPEAKER_02: we were being asked to compete and race to the bottom on price.
- 25:41SPEAKER_02: And, you know, we tried to hold on nerve with that and we were largely successful with it.
- 25:47SPEAKER_02: But nowadays we're seeing a lot less of that.
- 25:49SPEAKER_02: I think A,
- 25:50SPEAKER_02: because I guess we've become cheaper and more agile and done what we need to do,
- 25:54SPEAKER_02: but also I think As Gary says,
- 25:56SPEAKER_02: we've had,
- 25:57SPEAKER_02: you know,
- 25:58SPEAKER_02: clients come back to us and gone,
- 25:59SPEAKER_02: yeah, okay, that project that we went cheap with didn't work out.
- 26:02SPEAKER_02: So we're now,
- 26:03SPEAKER_02: I think we're always trying as Sumo,
- 26:06SPEAKER_02: hold our value, you know, we can do things others can't do.
- 26:09SPEAKER_02: And yeah, you come to Sumo, Well, you know, you get a job well done.
- 26:13SPEAKER_02: Gary always tells me we've got 99.9% milestones delivered on time, you know, to scope.
- 26:20SPEAKER_02: We offer that level of certainty.
- 26:22SPEAKER_02: We offer, you know, we call it the sumo guarantee.
- 26:24SPEAKER_02: And I know everyone has a guarantee in their contracts.
- 26:27SPEAKER_02: We promise we'll do what we say we do, but we mean it and we actually do it.
- 26:30SPEAKER_02: You know, there's not everybody here.
- 26:32SPEAKER_00: Who's responsible for the 0.1% then?
- 26:37SPEAKER_01: We've got a board pack that we go through and it's one of the Tencent metrics
- 26:41SPEAKER_01: that KPIs is that metric.
- 26:44SPEAKER_01: And actually this month we looked at the board pack and 62 milestones delivered
- 26:49SPEAKER_01: and 62 milestones accepted.
- 26:51SPEAKER_01: And we looked at them on time and delivered on time.
- 26:55SPEAKER_01: So it's actually 100% this month for the first time.
- 26:57SPEAKER_01: It normally goes to about 98, but yeah, it was 100% this time, so no one.
- 27:02SPEAKER_01: The point is,
- 27:03SPEAKER_01: we're super proud of the people we've got working for us and the talent
- 27:07SPEAKER_01: that they bring to the industry.
- 27:08SPEAKER_01: And we're super excited what we've got to do going forward.
- 27:13SPEAKER_00: Well, it's what we were talking about, Andy, before we were chatting.
- 27:16SPEAKER_00: If you want an incredible platform game, for instance, there aren't that many.
- 27:20SPEAKER_00: You could probably outsource it to somewhere else, but they're here, right?
- 27:23SPEAKER_00: And so it's...
- 27:24SPEAKER_00: In an artistic,
- 27:25SPEAKER_00: talent-based industry,
- 27:26SPEAKER_00: if you can go cheap in how competitive the marketplace is,
- 27:30SPEAKER_00: you really want to go with the best that you can afford, right?
- 27:33SPEAKER_00: And so there's that element to it, I guess.
- 27:35SPEAKER_00: Well, I keep hearing that people are leaning on outsource more But is that actually true?
- 27:40SPEAKER_00: I'm trying to work this out for some of the answers you've been giving me.
- 27:42SPEAKER_00: Or are they shrinking external development?
- 27:44SPEAKER_00: Seems to me like there's a bit of both going on.
- 27:46SPEAKER_00: Is that right?
- 27:47SPEAKER_00: Is that fair?
- 27:48SPEAKER_02: I think what we are seeing is our partners are now being held to smaller teams in-house.
- 27:55SPEAKER_02: So that is an opportunity for an outsourcer like Sumo because we can provide
- 28:01SPEAKER_02: the scale So there
- 28:06SPEAKER_02: definitely is an opportunity for outsourcers.
- 28:09SPEAKER_02: It's not to say that,
- 28:11SPEAKER_02: you know,
- 28:11SPEAKER_02: the outsourcing world is easier or growing,
- 28:14SPEAKER_02: particularly in the West, because obviously we are competing with lower costs.
- 28:18SPEAKER_02: We've got to keep our team to 50 people,
- 28:19SPEAKER_02: but we want you to come on this journey with us and maybe we'll take 10 people
- 28:22SPEAKER_02: to start with, but we might grow to 200
- 28:33SPEAKER_02: The Game takes off,
- 28:33SPEAKER_02: but all that growth will come from Sumo because we want to keep
- 28:37SPEAKER_02: that agile lean model.
- 28:38SPEAKER_02: And that's what Sumo can do.
- 28:39SPEAKER_02: You know,
- 28:41SPEAKER_02: we're small enough that we can provide that kind of boutique white glove service,
- 28:45SPEAKER_02: but we're big enough that we can scale with your project as well.
- 28:47SPEAKER_02: So that's kind of where we see Sumo sitting in the world.
- 28:52SPEAKER_02: Definitely.
- 28:52SPEAKER_00: Is AI a threat to you in the sense that,
- 28:55SPEAKER_00: you know,
- 28:55SPEAKER_00: maybe they don't sign developers to do quite so much outsourcing
- 28:58SPEAKER_00: because they've got tools and tech that can do some of it for them?
- 29:01SPEAKER_02: I think at the moment we're seeing AI is very much an opportunity for us,
- 29:05SPEAKER_02: you know,
- 29:05SPEAKER_02: in terms of the projects that we've got as well,
- 29:08SPEAKER_02: you know, we'll always be, you know, partner led in terms of how we approach AI.
- 29:13SPEAKER_00: Yeah.
- 29:14SPEAKER_02: So we have some partners that tell us No AI in this project at all.
- 29:18SPEAKER_02: And that's fine.
- 29:19SPEAKER_02: We do that.
- 29:20SPEAKER_02: We have some partners that will say,
- 29:22SPEAKER_02: look, we want you to explore AI with us and tell us what's possible.
- 29:25SPEAKER_02: So they're almost looking at external development and saying,
- 29:29SPEAKER_02: we don't have all the answers on AI.
- 29:31SPEAKER_02: I guess nobody does right now, but we want you to tell us what you think.
- 29:34SPEAKER_02: So we have some projects where we're going through some really Vanguard kind
- 29:39SPEAKER_02: of explorations with their partners on their projects to try and get a project
- 29:43SPEAKER_02: to deliver that compelling gaming experience for players.
- 29:46SPEAKER_00: You must have a unique perspective on that kind of thing because we're working
- 29:49SPEAKER_00: on 30 different projects.
- 29:50SPEAKER_00: Yeah, yeah.
- 29:50SPEAKER_00: I don't know if there's 30 different clients.
- 29:52SPEAKER_00: I tend to ask,
- 29:53SPEAKER_00: this is my final question,
- 29:54SPEAKER_01: but we'll see if something spins out of it,
- 29:55SPEAKER_01: but where would you like to be in five years?
- 29:58SPEAKER_01: I'd like to see the fruits of our own IP, you know, bearing that fruit.
- 30:03SPEAKER_01: So having some evergreen games of our own.
- 30:06SPEAKER_01: I would like to fuse that experience.
- 30:10SPEAKER_01: We see it's a catalog of the premium partners throughout the world and what we want
- 30:14SPEAKER_01: to do is have this virtuous circle whereby we're folding that experience back
- 30:19SPEAKER_01: into what we do and we're then pushing that experience back out to our partners.
- 30:24SPEAKER_01: And I just want to see it grow,
- 30:25SPEAKER_01: you know,
- 30:26SPEAKER_01: and I would like to see us being still at the bleeding edge of development.
- 30:29SPEAKER_01: I think we've done,
- 30:30SPEAKER_01: you know, we want to continue our Our trap line is create, innovate, support.
- 30:36SPEAKER_01: And I want to be pushing forward, or we want to be pushing forward on all of those areas.
- 30:40SPEAKER_01: But in innovation, I'm excited by what we're doing.
- 30:45SPEAKER_01: It's a great enabler.
- 30:46SPEAKER_01: We want to be human-centric, AI-enabled game developers.
- 30:51SPEAKER_01: And we're starting to see some real fruits of that.
- 30:53SPEAKER_01: We started a great presentation from...
- 30:55SPEAKER_01: We formed a technology leadership group in Sumo earlier this year.
- 30:59SPEAKER_01: We didn't want to have a single person responsible for it.
- 31:02SPEAKER_01: We want, obviously, we're multi-site, we're multi-studio.
- 31:07SPEAKER_01: We wanted to have a collective of people sharing The knowledge and sharing the focus
- 31:15SPEAKER_01: of technology and of which AI forms a core part at the moment.
- 31:18SPEAKER_01: And we're starting to see some really exciting things, you know.
- 31:21SPEAKER_01: The example I was going to give was,
- 31:23SPEAKER_01: you know,
- 31:25SPEAKER_01: on game team,
- 31:26SPEAKER_01: you know,
- 31:26SPEAKER_01: you've always got tools engineers,
- 31:28SPEAKER_01: but there's always a whole bunch of people waiting For that tool to be built
- 31:33SPEAKER_01: that unleashes the game team.
- 31:36SPEAKER_01: You know, we built tools in an afternoon with AI's assistance.
- 31:41SPEAKER_01: It would take a week.
- 31:43SPEAKER_01: It's still a tools engineer setting it up and getting it up,
- 31:45SPEAKER_01: but you've managed to do it quickly and unblock the rest of the dev team.
- 31:48SPEAKER_01: So what you're getting, you're getting more bang for your buck.
- 31:50SPEAKER_01: You're getting your developers to do more development,
- 31:54SPEAKER_01: you know,
- 31:54SPEAKER_01: because you're unleashing their creativity by unblocking some things that used
- 31:58SPEAKER_01: to take a lot further.
- 32:00SPEAKER_01: And, you know,
- 32:01SPEAKER_01: I'm excited about being able to do that because,
- 32:03SPEAKER_01: you know,
- 32:04SPEAKER_01: we talked earlier about wanting to get great game experiences
- 32:07SPEAKER_01: into players' hands quickly and grow them, and I think that's how we do it.
- 32:13SPEAKER_00: So is it a speed thing rather than a quality thing?
- 32:15SPEAKER_00: I know some people,
- 32:16SPEAKER_00: I talked about AI, the question is, is it going to speed up the making of games?
- 32:20SPEAKER_01: Or are you just going to be able to do more?
- 32:22SPEAKER_01: I think it depends what sort of segment of the marketplace.
- 32:24SPEAKER_01: I think if you're making friend slop games and try and turn loads of them out quick,
- 32:29SPEAKER_01: then you're probably going to want to do it more for quicker.
- 32:32SPEAKER_01: But, you know, certainly for us, it's about enabling us to do More iterations.
- 32:40SPEAKER_01: On one of our projects,
- 32:41SPEAKER_01: we used it in the early part of the process to do some testing in concepts.
- 32:46SPEAKER_01: It just allowed us,
- 32:47SPEAKER_01: we didn't use AI art,
- 32:50SPEAKER_01: but we used AI to turbocharge the process to give more iteration.
- 32:56SPEAKER_01: It closed our iteration loop so we had more opportunity And if that can be unlocked
- 33:01SPEAKER_01: by AI, then I'm all for it.
- 33:25SPEAKER_00: Interestingly, I wasn't actually asking
- 33:27SPEAKER_01: about AI.
- 33:28SPEAKER_01: No.
- 33:28SPEAKER_00: But it's interesting.
- 33:30SPEAKER_02: Andy, would you give... Five years.
- 33:32SPEAKER_02: I mean, I'm going to actually say,
- 33:34SPEAKER_02: because I don't want to wait five years for this stuff,
- 33:36SPEAKER_02: so let's say two years from now,
- 33:40SPEAKER_02: Some of the partnerships we've recently onboarded,
- 33:43SPEAKER_02: real evergreen genre leading titles.
- 33:46SPEAKER_02: I want to see Sumo's involvement.
- 33:48SPEAKER_02: We want to be able to tell the world about those things in the same way we can talk
- 33:52SPEAKER_02: about our partnership with Digital Extremes on Warframe.
- 33:56SPEAKER_02: So I'd like to see two or three of those grow to that sort of level of success.
- 34:00SPEAKER_02: That's on the co-dev side.
- 34:02SPEAKER_02: In terms of full games,
- 34:05SPEAKER_02: Over the next two years,
- 34:06SPEAKER_02: I can think of four or five,
- 34:08SPEAKER_02: you know,
- 34:09SPEAKER_02: full games across different platforms that you're going to see coming out
- 34:12SPEAKER_02: where Sumo is the developer.
- 34:14SPEAKER_02: And I also,
- 34:16SPEAKER_02: like a lot of people,
- 34:17SPEAKER_02: are desperate to see what the Texas Chainsaw Massacre team are going to do next.
- 34:20SPEAKER_02: And you're not going to have to wait too long for that.
- 34:22SPEAKER_02: And what the Sackboy team is going to have to do next.
- 34:24SPEAKER_02: And again, you're not going to have to wait five years for that.
- 34:26SPEAKER_02: So two to three years time, you know, that's where I want the business to be.
- 34:32SPEAKER_00: Maybe a few more BAFTAs.
- 34:34SPEAKER_02: Yeah, maybe a few more BAFTAs.
- 34:35SPEAKER_00: Yeah.
- 34:35SPEAKER_02: Absolutely.
- 34:36SPEAKER_00: I was asked one final question, which is how ambitious are you being with your own IP?
- 34:39SPEAKER_00: I mean, how is this, what are we talking about here, sort of AA level?
- 34:41SPEAKER_00: Can you tell me?
- 34:42SPEAKER_00: Can you hint?
- 34:43SPEAKER_02: Um, it's, we, It's probably double A.
- 34:52SPEAKER_02: It's not the 100, 200 million dollar game.
- 34:54SPEAKER_00: I think those are dying out.
- 34:56SPEAKER_02: Yeah, exactly.
- 34:57SPEAKER_02: We have to be cheaper.
- 34:59SPEAKER_02: Ultimately, we're trying to make games for under 50 million.
- 35:02SPEAKER_02: I'm not saying Every game in our NIP will be that level, but that's what we're targeting.
- 35:07SPEAKER_02: And as Gary says, it's that virtuous loop.
- 35:10SPEAKER_02: So if we make the next game and it might cost us 5 million, let's expand for 10 million.
- 35:17SPEAKER_02: It's a stepping stone.
- 35:17SPEAKER_02: And process as well.
- 35:19SPEAKER_02: And it does depend on the team.
- 35:20SPEAKER_02: So there is a bigger game out there as well that we're going to get in people's hands.
- 35:24SPEAKER_02: So it's all of the above really.
- 35:27SPEAKER_00: It's what we talk, I've talked, you listen to the show, I've talked about it a few times.
- 35:29SPEAKER_00: I did wonder if the sort of drive to these clear obscure style 30, 40, 50 million dollar games.
- 35:36SPEAKER_00: Some of them will stay at that level,
- 35:37SPEAKER_00: their studio will go,
- 35:37SPEAKER_00: I want to stay a small studio, I want to stay making games of that size.
- 35:40SPEAKER_00: But some of them might go, oh, we've got a hit, we've got an IP now, we can go a bit bigger.
- 35:45SPEAKER_00: And I think that's an okay journey to go on in this industry.
- 35:48SPEAKER_00: Completely agree.
- 35:49SPEAKER_00: And Sumo can help you with it.
- 35:51SPEAKER_00: Nice.
- 35:52SPEAKER_00: Well, thank you, Gary.
- 35:53SPEAKER_00: Thank you, Andy, for joining us.
- 35:54SPEAKER_00: Thank you.
- 35:55SPEAKER_00: Thank you.
- 35:56SPEAKER_00: That's it for today's episode of The Game Business Show.
- 35:59SPEAKER_00: Thank you to Andy and Gary for inviting us up to Sheffield.
- 36:02SPEAKER_00: We will be back,
- 36:02SPEAKER_00: of course,
- 36:03SPEAKER_00: with more news analysis, insight and interviews in the days and weeks ahead.
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- 36:29SPEAKER_00: But that's it for me today.
- 36:31SPEAKER_00: Until next time, thank you for tuning in.