Strategy First: Difference between revisions

From Wikipedia, the free encyclopedia
Browse history interactively
← Previous editNext edit →
Content deleted Content added
VisualWikitext
Line 38: Line 38:
In a post on the Steam community forum on 14 June 2009, Technetium Games, publishers of "SlamIt Pinball", also posted claims that Strategy First was not paying royalties or making reports of sales. "Strategy First is still not paying us any money. They are not sending us any report on sales. They are telling us stories and giving explanations."
In a post on the Steam community forum on 14 June 2009, Technetium Games, publishers of "SlamIt Pinball", also posted claims that Strategy First was not paying royalties or making reports of sales. "Strategy First is still not paying us any money. They are not sending us any report on sales. They are telling us stories and giving explanations."


=== New ownership ===
=== Bankruptcy and acquisition ===
By May 2004, Strategy First had amassed over {{US$|5&nbsp;million|link=yes}} in debt and had shrunk from more than 100 employees in three offices to sixteen staff in in its primary office in Montreal. The debts included almost {{US$|4&nbsp;million|long=no}} owed to investors, as well as {{US$|1.7&nbsp;million|long=no}} owed to to developers. As a result, Strategy First filed for [[bankruptcy]]<!-- Note: Not Chapter 11 bankruptcy, as it says in Gamasutra article, because that does not exist in Canada; see the Rock, Paper, Shotgun source for clarification. --> on 4 August 2004.<ref>{{cite web |url=https://www.gamasutra.com/view/news/95285/Strategy_First_Files_For_Bankruptcy.php |title=Strategy First Files For Bankruptcy |first=David |last=Jenkins |date=22 September 2004 |website=[[Gamasutra]]}}</ref><ref>{{cite web |url=https://www.rockpapershotgun.com/2014/02/05/new-developers-report-no-payments-from-strategy-first/ |title=Correction Regarding Strategy First |first=John |last=Walker |date=5 February 2014 |website=[[Rock, Paper, Shotgun]]}}</ref> Due to this insolvency, multiple developers, including [[Stardock]] and [[Paradox Interactive]], did not receive royalties for their respective games published by Strategy First.<ref>{{cite web |url=https://www.polygon.com/features/2013/8/7/4554042/paradox-interactive-history |title=Solving Paradox: How the historical strategy game maker stayed alive |first=Charlie |last=Hall |date=7 August 2013 |website=[[Polygon (website)|Polygon]]}}</ref><ref>{{cite web |url=https://www.pcgamesn.com/stardock-brad-wardell-interview |title=The other Gabe: Stardock CEO Brad Wardell talks independence, feminism, and taking responsibility |first=Jeremy |last=Peel |date=6 October 2016 |website=[[PCGamesN]]}}</ref> Subsequently, Polish developer [[Techland]] cut all times with Strategy First, disallowing Strategy First from distributing any Techland product, effective on 18 September.<ref>{{cite web |url=https://www.gamasutra.com/view/news/95297/Strategy_First_Loses_Techland_Rights.php |title=Strategy First Loses Techland Rights |first=David |last=Jenkins |date=24 September 2004 |website=[[Gamasutra]]}}</ref> [[Silverstar Holdings]], a [[public company]] based in [[Boca Raton, Florida]], that specialised in the acquisition of pay-to-play businesses, announced on 22 April 2005 that it had acquired Strategy First from the bankruptcy proceedings. The company contributed {{US$|600,000|long=no}} in cash and 400,000 shares of [[common stock]] to Strategy First's creditors, while also asuming {{US$|400,000|long=no}} of Strategy First's existing debt.<ref>{{cite web |url=https://www.gamezone.com/news/silverstar_holdings_announces_acquisition_of_strategy_first/ |title=Silverstar Holdings Announces Acquisition of Strategy First |author=jkdmedia |date=22 April 2005 |website=GameZone}}</ref><ref>{{cite web |url=https://www.gamasutra.com/view/news/5874/Strategy_First_Signs_PostResurrection_European_Distribution_Deal.php |title=Strategy First Signs Post-Resurrection European Distribution Deal |first=Nich |last=Maragos |date=7 July 2005 |website=[[Gamasutra]]}}</ref> Clive Kabatznik, the [[chief executive officer]] (CEO) of Silverstar Holdings, stated that the company intended to use Strategy First as a niche publisher, in parallel to its other recent acquisition, [[Empire Interactive]], which Kabatznik described as a "more fully fledged publisher".<ref>{{cite web |url=https://www.gamasutra.com/view/news/103746/QA_Kabatznik_On_FlatOut_Growth_For_EmpireStrategy_First.php |title=Q&A: Kabatznik On FlatOut Growth For Empire/Strategy First |first=Jason |last=Dobson |date=16 February 2007 |website=[[Gamasutra]]}}</ref> In April 2005, Strategy First acquired and absorbed all assets of [[Santa Rosa, California]]-based developer [[Malfador Machinations]]. That company's [[President (corporate title)|president]] and CEO, Aaron Hall, joined Strategy First's management team as a result.<ref>{{cite web |url=https://www.gamasutra.com/view/news/99762/Strategy_First_Acquires_Malfador_Machinations.php |title=Strategy First Acquires Malfador Machinations |first=Jason |last=Dobson |date=5 April 2006 |website=[[Gamasutra]]}}</ref><ref>{{cite web |url=https://news.softpedia.com/news/Strategy-First-Acquires-The-Assets-Of-Malfador-Machinations-21065.shtml |title=Strategy First Acquires the Assets of Malfador Machinations |first=Silviu |last=Stahie |date=7 April 2006 |website=[[Softpedia]]}}</ref>
In 2004, Strategy First Inc filed for bankruptcy protection.
On 21 April 2005 it was acquired by Silverstar Holdings. Terms of the acquisition included "cash consideration to the creditors of Strategy First of $609,000; we issued 377,000 shares of our common stock; warrants to purchase 200,000 shares of our common stock; and assumed approximately $400,000 in existing bank debt, as well as contingent consideration based on the future profitability of Strategy First."<ref name="SEC 10-Q Filing November 14th, 2006">{{cite web |url=https://www.sec.gov/Archives/edgar/data/1003390/000091068006000962/f10k-06302006.htm |title=FORM 10-K For the fiscal year ended June 30, 2006}}</ref>

Silverstar Holdings Ltd. was a publicly traded company registered in Bermuda (traded on [[NASDAQ]] under symbol SSTR), with their web home page stating that they are "focusing on acquiring controlling positions in high-growth retail-driven and fee-based electronic game businesses that could benefit from the economies of scale generated by the Internet and other technology-related platforms." Silverstar completed a purchase of game developer [[Empire Interactive]] on 4 December 2006, and claimed in a same-day press release that with the addition of Empire Interactive titles to the Valve 'Steam' service, "we are delighted that in this short time the first collaborative effort between Empire and Strategy First has born fruit."<ref>[http://www.silverstarholdings.com/press/12-14-06.html Silverstar Press Release December 14, 2006] {{Webarchive|url=https://web.archive.org/web/20070927063131/http://www.silverstarholdings.com/press/12-14-06.html |date=27 September 2007 }}</ref>

The Silverstar SEC filing for its quarter ended 30 September 2006, indicates that Strategy First was not providing a significant flow of revenue: "We have recognized a net loss of $941,000 during first quarter fiscal 2007 compared to a net loss of $48,000 during the same period in the prior fiscal year. Significant items that contributed to the increased loss included an increase in operating losses to $583,000 in the first quarter of fiscal 2007 as compared to $421,000 in the first quarter of fiscal 2006. This increase was primarily caused by decreases in sales recognized by Strategy First."<ref name="SEC 10-Q Filing November 14th, 2006"/>


=== Financial difficulties ===
=== Financial difficulties ===

Revision as of 21:02, 20 June 2019

Strategy First Inc.
Company typeSubsidiary
IndustryVideo game industry
Founded1988; 36 years ago (1988)
Founders
  • Don McFatridge
  • Steve Wall
  • Dave Hill
Headquarters
Montreal, Quebec
,
Canada
Area served
Worldwide
Key people
Emanuel Wall (director)
ProductsSee List of Strategy First games
ParentSilverstar Holdings (2005–present)

Strategy First Inc. is a Canadian video game publisher based in Montreal. Founded in 1988 by Don McFatridge, Steve Wall and Dave Hill, the company initially specialized in developing strategy video games, and has since switched to publishing, releasing titles like the Disciples series, the Jagged Alliance series, O.R.B: Off-World Resource Base, and the Space Empires series.

History

Background and foundation

The original logo for Strategy First; each character represents one of the four founding partners, as well as a strategy sub-genre the company intended to develop.[1]

Strategy First was founded by Don McFatridge, Steve Wall and Dave Hill, three board game designers. During one lunch break in 1988, they decided that they would begin their careers anew, establishing Strategy First as a video game development company. Partner Richard Therrien joined shortly thereafter. The four wished to focus on strategy video games and named the company accordingly.[1]

Conflicts

Strategy First has had a conflict with Introversion Software. The company was distributing copies of Introversion's title Uplink entitled Uplink: Hacker Elite. However, after filing for bankruptcy, Strategy First suspended paying royalties to Introversion, already owing them tens of thousands of dollars. Introversion severed its ties with the company.

Former Strategy First developer Legend Studios also reported a conflict culminating in a press release issued 11 February 2005 where they claimed the publisher "breached the Software Publishing and Distribution Agreement", and that "we have not received a single sales report, payments for royalties and they practically have not fulfilled a single point in our agreement."

In a postmortem article about the development of Galactic Civilizations II, Stardock founder Brad Wardell stated, regarding the original title, that "Publisher Strategy First filed for bankruptcy without paying a significant portion of the royalties we were owed."[2] Gaming news sites have also reported conflicts involving Strategy First, such as a news item by gaming industry site Gamasutra that reported developer BattleGoat Studios co-founder George Geczy stating that "We had to give them 50 cents off the dollar just to get our money out of them."[3]

The strategy developer Pollux Gamelabs also reported a conflict with Strategy First and the release of the 4X strategy game Lost Empire. According to the Lost Empire forums, Pollux Gamelabs cancelled all co-operation with Strategy First due to some disagreements between the two companies, details of which were not specified.

An openly published accusation from i-Deal Games Studio, who were responsible for the sanctioned mod Jagged Alliance 2: Wildfire, states: "Due Methodical breach of software distribution agreement by Strategy First side i-Deal Games has terminated its agreement with Strategy First inc."

In a post on the Steam community forum on 14 June 2009, Technetium Games, publishers of "SlamIt Pinball", also posted claims that Strategy First was not paying royalties or making reports of sales. "Strategy First is still not paying us any money. They are not sending us any report on sales. They are telling us stories and giving explanations."

Bankruptcy and acquisition

By May 2004, Strategy First had amassed over US$5 million in debt and had shrunk from more than 100 employees in three offices to sixteen staff in in its primary office in Montreal. The debts included almost $4 million owed to investors, as well as $1.7 million owed to to developers. As a result, Strategy First filed for bankruptcy on 4 August 2004.[4][5] Due to this insolvency, multiple developers, including Stardock and Paradox Interactive, did not receive royalties for their respective games published by Strategy First.[6][7] Subsequently, Polish developer Techland cut all times with Strategy First, disallowing Strategy First from distributing any Techland product, effective on 18 September.[8] Silverstar Holdings, a public company based in Boca Raton, Florida, that specialised in the acquisition of pay-to-play businesses, announced on 22 April 2005 that it had acquired Strategy First from the bankruptcy proceedings. The company contributed $600,000 in cash and 400,000 shares of common stock to Strategy First's creditors, while also asuming $400,000 of Strategy First's existing debt.[9][10] Clive Kabatznik, the chief executive officer (CEO) of Silverstar Holdings, stated that the company intended to use Strategy First as a niche publisher, in parallel to its other recent acquisition, Empire Interactive, which Kabatznik described as a "more fully fledged publisher".[11] In April 2005, Strategy First acquired and absorbed all assets of Santa Rosa, California-based developer Malfador Machinations. That company's president and CEO, Aaron Hall, joined Strategy First's management team as a result.[12][13]

Financial difficulties

On 12 March 2009 Strategy First's parent company Silverstar Holdings Ltd was formally delisted from the NASDAQ market after failing to meet a timeline extension to become compliant with NASDAQ Marketplace Rules, specifically they "had not regained compliance with the stockholders' equity requirement".[14] The final statements publicly published by Silverstar were for the period ending 31 December 2008, filed on 20 February 2009.[15] In these statements, Silverstar indicated that Strategy First revenues were minimal for the three months ended 31 December 2008 ("about $400,000" out of revenues of $8.7 million), with the bulk of revenues coming from the Empire Interactive division. Silverstar's total loss for this period was $3.4 million. As of 31 December 2008 Silverstar reports current assets of about $4 million versus liabilities of $17 million. Accounts Payable and Royalties Payable totalled $4.3 million, versus only $422,000 in available cash. In their management review Silverstar states "These factors raise substantial doubt about the Company’s ability to continue as a going concern. Since June 2008, the Company has been seeking to raise additional capital in the form of both debt and equity; to this point with no success. The results of the quarter ended December 31, 2008 have further impacted the Company’s liquidity position and without a very short-term solution to this lack of liquidity, there is substantial doubt about the Company’s ongoing viability."

Subsequent to the SEC 10-Q filing, Silverstar reported that on 1 May 2009 their Empire Interactive division filed for "administration" (bankruptcy) in the UK, and that "Empire has sold its intellectual property assets to New World IP, LLC ",[16] and all 49 staff were laid off.[17] New World IP then leased the rights to publish Empire's entire catalogue to Zoo Games.[18]

Additionally, Silverstar has reported that it is in default on its repayments on both its 2008 and 2006 Debentures.[19]

Notable games

Main article: List of Strategy First games

References

  1. ^ a b c Keefer, John (31 March 2006). "GameSpy Retro: Developer Origins, Page 9 of 19". GameSpy. Archived from the original on 9 June 2007. {{cite web}}: Unknown parameter |dead-url= ignored (|url-status= suggested) (help)
  2. ^ Wardell, Brad (5 April 2006). "Postmortem: Stardock's Galactic Civilizations II: Dread Lords". Archived from the original on 15 June 2006. Retrieved 28 May 2019.
  3. ^ Kumar, Mathew (5 September 2006). "TIGC: How To Succeed At Indie Development". Archived from the original on 24 September 2016. Retrieved 28 May 2019. {{cite web}}: Unknown parameter |dead-url= ignored (|url-status= suggested) (help)
  4. ^ Jenkins, David (22 September 2004). "Strategy First Files For Bankruptcy". Gamasutra.
  5. ^ Walker, John (5 February 2014). "Correction Regarding Strategy First". Rock, Paper, Shotgun.
  6. ^ Hall, Charlie (7 August 2013). "Solving Paradox: How the historical strategy game maker stayed alive". Polygon.
  7. ^ Peel, Jeremy (6 October 2016). "The other Gabe: Stardock CEO Brad Wardell talks independence, feminism, and taking responsibility". PCGamesN.
  8. ^ Jenkins, David (24 September 2004). "Strategy First Loses Techland Rights". Gamasutra.
  9. ^ jkdmedia (22 April 2005). "Silverstar Holdings Announces Acquisition of Strategy First". GameZone.
  10. ^ Maragos, Nich (7 July 2005). "Strategy First Signs Post-Resurrection European Distribution Deal". Gamasutra.
  11. ^ Dobson, Jason (16 February 2007). "Q&A: Kabatznik On FlatOut Growth For Empire/Strategy First". Gamasutra.
  12. ^ Dobson, Jason (5 April 2006). "Strategy First Acquires Malfador Machinations". Gamasutra.
  13. ^ Stahie, Silviu (7 April 2006). "Strategy First Acquires the Assets of Malfador Machinations". Softpedia.
  14. ^ "EDGAR Pro". google.brand.edgar-online.com. Archived from the original on 25 February 2012. Retrieved 5 July 2010. {{cite web}}: Unknown parameter |dead-url= ignored (|url-status= suggested) (help)
  15. ^ "EDGAR Pro". google.brand.edgar-online.com. Archived from the original on 25 February 2012. Retrieved 5 July 2010. {{cite web}}: Unknown parameter |dead-url= ignored (|url-status= suggested) (help)
  16. ^ "EDGAR Pro". google.brand.edgar-online.com. Archived from the original on 25 February 2012. Retrieved 5 July 2010. {{cite web}}: Unknown parameter |dead-url= ignored (|url-status= suggested) (help)
  17. ^ "Empire IP rights sold as 49 staff made redundant". GamesIndustry.biz. Archived from the original on 20 September 2018. Retrieved 28 May 2019. {{cite web}}: Unknown parameter |dead-url= ignored (|url-status= suggested) (help)
  18. ^ Graft, Kris (7 May 2009). "Zoo Publishing Picks Up Empire Slate". Gamasutra. Archived from the original on 10 May 2009. Retrieved 12 May 2009. {{cite web}}: Unknown parameter |dead-url= ignored (|url-status= suggested) (help)
  19. ^ "EDGAR Pro". google.brand.edgar-online.com. Archived from the original on 25 February 2012. Retrieved 5 July 2010. {{cite web}}: Unknown parameter |dead-url= ignored (|url-status= suggested) (help)

External links

Retrieved from "https://en.wikipedia.org/w/index.php?title=Strategy_First&oldid=902730693"