Ferial
Old Alpha
- Joined
- Jul 4, 2012
- Posts
- 792
- Location
- Sweden
- Avatar Name
- Chris Ferial Book
Translated some parts of the memorandum (PDF in Swedish) that could be of interest to current players. There might be more, but I am tired atm. Will go through it again tomorrow evening
In 2020, we could see that user activity increased greatly as a result of the Covid-19 restrictions.
Even though the restrictions are now largely removed, we can see that user activity is still at a similar level to 2020.
Entropia Universe needs to be at the forefront when it comes to technology, it is what enables us as company to offer customers an experience that does not exist
elsewhere. The decision by MindArk's board to change the game engine to Unreal Engine 5 will not only future-proof Entropia Universe but it also gives us the ability to implement new technologies and increase the number of platforms on which the product is available.
It also allows for the company to increase productivity, create content of higher quality and also have faster development cycles
The Entropia Universe economy and its connection to the USD is proven and has built a strong and important trust capital during its 20 years of being in full operation.
The dynamic economy of Entropia Universe offers a wide variety of opportunities for users with market instincts and an entrepreneurial spirit to create value for themselves and others.
Entropia Universe users are between 18 and 75 years old and the average age is 33.
This results in a consolidation of the Companys resources and MindArk can thus focus solely on the end customers' needs.
The company assesses that user retention and conversion to active customers will increase in and with the graphics quality improving.
This in turn leads to more users being exposed to the economic system that has historically been the leading factor that made users prone to stay in the Entropia Universe for years.
With Unreal Engine 5, it is possible to create more content faster with improved performance, as well as new functionality for end users that is currently not possible with CryEngine2.
This leads to shorter lead times in the production of content in Entropia Universe
With Unreal Engine 5 being a modern game engine that offers new technical opportunities for developers, MindArk can attract a wider pool of employees and skills.
In connection with the transition to the new game engine, it is possible for the Company to realize the plans for a new modular and scalable server architecture and communication model.
These improvements together with Unreal Engine 5 mean that Entropia Universe will become scalable in a new way to quickly and dynamically handle changes in load, sudden or heavy influx of new users or future major technological changes.
The support available in the game engine for, for example, VR and AR will enable the Company to create content for new target groups and thus broaden the product offering.
MindArk already works extensively with AI today.
AI technology is developing rapidly and MindArk, in connection with the Unreal Engine 5 migration, will take advantage of the latest technology has to offer.
Unreal Engine is used today in the market to create games for all major platforms such as consoles, mobile and PC.
This means that the company can increase customer exposure by launching Entropia Universe on other platforms besides PC in the future, this is a technical difficulty with today's game engine CryEngine2.
The implementation of Unreal Engine 5 is deemed to be able to increase MindArks ability to market Entropia Universe to new customer segments, while the Companys conversion of new users is expected to increase.
Overall, this is expected to give rise to revenue increases.
MindArk estimates that the implementation of Unreal Engine 5 will be launched in Q1/Q2 2025.
This revenue per user has been relatively stable, however, with a slowly rising trend.
Total deposits for the average paying user over the lifetime of the user are over $8000.
This group corresponds to approximately 10% of Entropia Universe's total amount of active users.
In 2020, the average paying user totaled $1,345 in deposits
In December 2021, 800,000 deeds were listed for sale at 10 PED equivalent to 1 USD each.
In 22 minutes all deeds were sold out.
In 2021, revenue from deeds sales accounted for 8.8% of the Companys total revenue, which was an increase from 2.3% in 2020.
In 2022, MindArk did not conduct any new deed sales, but the Company plans to conduct a deed sale annually in the future.
Historically, MindArks partners have generated a relatively small part of the Companys total turnover.
In 2020, MindArks partners invoiced approximately 5.5% of the total turnover, in 2021 the Companys partners invoiced approximately 6.6% of the total turnover.
Between January 1 and October 31, 2022, MindArk's partners have invoiced 6.8% of the Companys turnover
The agreement MindArk signed with Epic Games in 2021 includes the ability for MindArk to market and offer Entropia Universe on the Epic Games Store.
MindArks collaboration with Epic Games will lead to MindArk being able to focus more and more on the development and operation of Entropia Universe instead of spending resources on the current game engine.
MindArk has continuously had collaborations with so-called "streamers" and other "gaming influencers" on platforms such as Twitch and Youtube.
Part of the marketing strategy is to increase and expand these collaborations in connection with the launch of Entropia Universe in Unreal Engine 5
MindArk plans to expand the Companys current affiliate program for existing users.
MindArk also develops tools for users to create their own events and content inside Entropia Universe to increase activity among users.
MindArk's closest competitor is Star Atlas, a SciFi-based MMO game with a play-to-earn model that is connected to Solana blockchain technology.
The company themselves assess that they have progressed further in development than Star Atlas and assess that there are many barriers for Star Atlas to overcome before they can be seen as direct competitors
The Company has no legal obligation to pay out user funds, but if a decision is made not to pay out, it will have a significant impact on user loyalty and the Company's brand.
Historical figures show that between 27 – 35% of deposited funds have been withdrawn by users.
The rest has been spent or remained in users' accounts in the form of digital assets or cash in the form of the virtual currency PED
Currently, MindArk's core product is relatively free from competition while the barriers to entry are high.
However, there are several companies operating in similar markets that probably have capital and to create games similar to MindArks.
Should these actors start selling competing games, it could result in the Company losing both market share and margins, which would then negatively affect the Company's earning capacity, turnover and profit
BULLET POINTS.
- Activity increased with COVID and has remained fairly stable since
- EU has users between 18 and 75 yo, Average age 33
- The engine change opens up possibilites for other platforms than PC
- Q1/Q2 2025 UE5 EU Release
- On average a user generates $1.3 revenue per hour.
- Average lifetime deposits for a paying user is over $8000
- 10% of active users are paying users.
- In 2020 paying users averaged $1,345 in deposits.
- MindArk plans to conduct a deed sale annually in the future.
- MindArk gets 50% of revenue generated, Planet Owner receives 25%, User Owner receives 25%
- Calypso born avatar on Calypso gives MA 100% revenue
- Calypso born avatar on another planet gives MA 75% revenue, 25% to the planet on which the activity occurs.
- Planet Partner born avatar on that planet partner gives MA 50% revenue and 50% to the planet partner.
- Planet Partner born avatar on Calypso gives MA 75% revenue and the Planet Partner on which the avatar was born gets 25%
- Planet Partner born avatar on a different Planet Partner planet gives MA 50% revenue, the planet partner on which the avatar was born gets 25% and the planet partner on which the activity occurs gets 25%
- Planet Partners have gotten better at generating revenue the past couple of years.
- MindArk plans to expand content-creator collaborations with the release of UE5 Entropia. (e.g. Streamers, Gaming Influencers)
- MindArk plans to expand on the current affiliation program for existing users.
- MindArk has no direct competitors in the 3D Virtual Universe with RCE segment.
- MindArks closest competitor is Star Atlas. (Sci-Fi MMO with RCE on Solana Blockchain
- MindArk has no legal obligation to pay out user funds (
This should be apparent to everyone, but including it anyway)(I assumed that this was because EULA allows MA to do whatever they want, discussion made me unsure, thus the strike) - Historically 27-35% of deposits are withdrawn
HENRIKS WORDS
In 2020, we could see that user activity increased greatly as a result of the Covid-19 restrictions.
Even though the restrictions are now largely removed, we can see that user activity is still at a similar level to 2020.
Entropia Universe needs to be at the forefront when it comes to technology, it is what enables us as company to offer customers an experience that does not exist
elsewhere. The decision by MindArk's board to change the game engine to Unreal Engine 5 will not only future-proof Entropia Universe but it also gives us the ability to implement new technologies and increase the number of platforms on which the product is available.
It also allows for the company to increase productivity, create content of higher quality and also have faster development cycles
ENTROPIA UNIVERSE
Entropia Universe is the only online world with a working monetary system that is not connected to a blockchain, the currency in Entropia Universe has a fixed exchange rate against USD.The Entropia Universe economy and its connection to the USD is proven and has built a strong and important trust capital during its 20 years of being in full operation.
The dynamic economy of Entropia Universe offers a wide variety of opportunities for users with market instincts and an entrepreneurial spirit to create value for themselves and others.
Entropia Universe users are between 18 and 75 years old and the average age is 33.
THE ENGINE CHANGE
The deal with Epic Games means that MindArk will continuously receive updates to the game engine Unreal Engine 5 without the Companys own resources being required to develop these systems and this in turn leads to large savings for the company.This results in a consolidation of the Companys resources and MindArk can thus focus solely on the end customers' needs.
The company assesses that user retention and conversion to active customers will increase in and with the graphics quality improving.
This in turn leads to more users being exposed to the economic system that has historically been the leading factor that made users prone to stay in the Entropia Universe for years.
With Unreal Engine 5, it is possible to create more content faster with improved performance, as well as new functionality for end users that is currently not possible with CryEngine2.
This leads to shorter lead times in the production of content in Entropia Universe
With Unreal Engine 5 being a modern game engine that offers new technical opportunities for developers, MindArk can attract a wider pool of employees and skills.
In connection with the transition to the new game engine, it is possible for the Company to realize the plans for a new modular and scalable server architecture and communication model.
These improvements together with Unreal Engine 5 mean that Entropia Universe will become scalable in a new way to quickly and dynamically handle changes in load, sudden or heavy influx of new users or future major technological changes.
The support available in the game engine for, for example, VR and AR will enable the Company to create content for new target groups and thus broaden the product offering.
MindArk already works extensively with AI today.
AI technology is developing rapidly and MindArk, in connection with the Unreal Engine 5 migration, will take advantage of the latest technology has to offer.
Unreal Engine is used today in the market to create games for all major platforms such as consoles, mobile and PC.
This means that the company can increase customer exposure by launching Entropia Universe on other platforms besides PC in the future, this is a technical difficulty with today's game engine CryEngine2.
The implementation of Unreal Engine 5 is deemed to be able to increase MindArks ability to market Entropia Universe to new customer segments, while the Companys conversion of new users is expected to increase.
Overall, this is expected to give rise to revenue increases.
MindArk estimates that the implementation of Unreal Engine 5 will be launched in Q1/Q2 2025.
BUSINESS IDEA AND REVENUE MODEL
On average, each user generates $1.3 per hour they spend in Entropia Universe.This revenue per user has been relatively stable, however, with a slowly rising trend.
Total deposits for the average paying user over the lifetime of the user are over $8000.
This group corresponds to approximately 10% of Entropia Universe's total amount of active users.
In 2020, the average paying user totaled $1,345 in deposits
DEEDS
The Deeds generate periodic payments in PED to the holder based on the activity on the associated property or area.In December 2021, 800,000 deeds were listed for sale at 10 PED equivalent to 1 USD each.
In 22 minutes all deeds were sold out.
In 2021, revenue from deeds sales accounted for 8.8% of the Companys total revenue, which was an increase from 2.3% in 2020.
In 2022, MindArk did not conduct any new deed sales, but the Company plans to conduct a deed sale annually in the future.
PLANET PARTNERS
When it comes to planet partners, MindArk always gets at least 50% of the revenue generated on the planets in the Entropia Universe, whoever owns the customer relationship gets 25% and whoever created the planet gets 25%Historically, MindArks partners have generated a relatively small part of the Companys total turnover.
In 2020, MindArks partners invoiced approximately 5.5% of the total turnover, in 2021 the Companys partners invoiced approximately 6.6% of the total turnover.
Between January 1 and October 31, 2022, MindArk's partners have invoiced 6.8% of the Companys turnover
PARTNERSHIPS
As of January 2022, Epic Games had 31.1 million active users and 194 million registered accounts.The agreement MindArk signed with Epic Games in 2021 includes the ability for MindArk to market and offer Entropia Universe on the Epic Games Store.
MindArks collaboration with Epic Games will lead to MindArk being able to focus more and more on the development and operation of Entropia Universe instead of spending resources on the current game engine.
MindArk has continuously had collaborations with so-called "streamers" and other "gaming influencers" on platforms such as Twitch and Youtube.
Part of the marketing strategy is to increase and expand these collaborations in connection with the launch of Entropia Universe in Unreal Engine 5
MindArk plans to expand the Companys current affiliate program for existing users.
MindArk also develops tools for users to create their own events and content inside Entropia Universe to increase activity among users.
COMPETITORS
Historically, MindArk has had no direct competitor in its segment, three-dimensional virtual universe with a real economy (RCE)MindArk's closest competitor is Star Atlas, a SciFi-based MMO game with a play-to-earn model that is connected to Solana blockchain technology.
The company themselves assess that they have progressed further in development than Star Atlas and assess that there are many barriers for Star Atlas to overcome before they can be seen as direct competitors
RISKS
In 2011, a situation arose where the Company had limited liquidity and there was some delay in payments of requested withdrawals, however, the Company did not notice any negative impact on user loyalty or increasing requests for withdrawals.The Company has no legal obligation to pay out user funds, but if a decision is made not to pay out, it will have a significant impact on user loyalty and the Company's brand.
Historical figures show that between 27 – 35% of deposited funds have been withdrawn by users.
The rest has been spent or remained in users' accounts in the form of digital assets or cash in the form of the virtual currency PED
Currently, MindArk's core product is relatively free from competition while the barriers to entry are high.
However, there are several companies operating in similar markets that probably have capital and to create games similar to MindArks.
Should these actors start selling competing games, it could result in the Company losing both market share and margins, which would then negatively affect the Company's earning capacity, turnover and profit
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