Vision Statement

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Our Vision

 

Idea Fabrik was founded in December 2009 with the vision that creating innovative online video games relies on a foundation of world class development technology that is easy to use and collaborative by design.

In 2010, we further refined our vision and embarked on a mission to break down many of the barriers to even more rapid growth in the already exciting online game market.

Today, we are executing on that vision by giving all game developers, from major studios to independents and startups, ready access to best in class game development and distribution technology that is easy to use and requires minimum initial cash investment.

Our mission is to remove the barriers to rapid, low cost development of online games that are rich in content and fun to play.

 

Overview

At the core of our business lies our online game development technology “HeroEngine” which quickly became the technology of choice for MMO projects at AAA studios including Electonic Arts’ BioWare studio’s “Star Wars: The Old Republic”, which was released to public in December 2011; another major multi-year project “The Elder Scrolls Online” by Zenimax Online (parent company of major developer/publisher Bethesda Softworks) released in April 2014 and others.

Our business model is based on licensing HeroEngine:

1. HeroEngine Source Code License - on a perpetual basis for development of a single game property for a one-time payment that is typically in the range of several hundreds of thousands of dollars;
2. HeroCloud Service License - on a subscription basis for development of a single game property for a recurring annual fee in hundreds dollars plus revenue-based royalties from 15% to 30% depending on the range of services.

 

HeroCloud service is HeroEngine platform which operates in the Internet cloud so as to support a business model that provided global access to a greater number of game developers at a lower initial price point. In addition, the HeroCloud service provides micro-transaction billing and on-line payment capabilities. Licensees of HeroCloud Services can develop their games using HeroEngine for a low subscription fee in a hosted  environment where servers are operated in the Internet Cloud and managed by Idea Fabrik. In exchange, Idea Fabrik receives a 15% - 30% share of gross revenue from those games, when they are launched commercially. By providing the developer with a HeroEngine license for a low up-front fee, as well as bundling added business and operational solutions, such as hosting and an automated billing system, HeroCloud handles every aspect of a game's life cycle for the Developer except the actual game development manpower. This allows development teams to focus their personnel and financial resources on their game design and development, using the powerful development technology of HeroEngine, while Idea Fabrik centrally manages distribution operations and billing service.

 

HeroCloud was released in several stages beginning in late 2010 and continuing throughout 2011, in a manner typical for new software and service offerings. As of January 31, 2013, HeroCloud is in full initial release mode and the Company has issued more than 4,000 licenses to developers under the 30% royalty model. Initially the HeroCloud was licensed at no up-front fee, in May 2012 a small subscription fee was introduced to partially cover Idea Fabrik’s server costs.

We expect a number of games currently in development through the HeroCloud service to launch beginning in the second half of 2016, with a larger number following in 2017 and 2018. Of course not all games currently under development will make through to launch, for a variety of factors, and not all games, even if launched will be commercially successful.

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