Metaplay CPO discusses Finnish Gaming Industry, local talent, future trends and more in a compelling Interview

As I delve deeper into the captivating world of game development, I find myself constantly amazed by the innovative practices that studios like Rovio and Supercell have pioneered, especially when it comes to live operations in games. The conventional wisdom has long been that developers work on new features, while others maintain the game system, but the times they are a-changin’.

Finland has played a significant role in shaping exceptional gaming experiences through its native studios like Supercell, creators of Angry Birds by Rovio Entertainment, and developers of the Max Payne franchise, Remedy Entertainment, among others. Another company striving towards the same goal is Metaplay, not necessarily a developer or publisher, but significantly impacting the gaming world with its pre-built backend platform tailored for games. Our team at GamingonPhone recently spoke with Teemu Haila, Chief Product Officer (CPO) at Metaplay, for an enlightening interview about the Finnish Gaming Industry, local talent, future trends, and more. We will be sharing insights from this interview here.

1. Hello Teemu, let us start with your introduction and role at Metaplay.

Indeed, it’s a pleasure to meet you. I am Teemu Haila, serving as the Chief Product Officer at Metaplay and one of its co-founders. With approximately 16 years in the gaming industry behind me, I’ve found my niche in game development, where I focus on aspects such as art, sound, and creating games. While I enjoy these creative pursuits, I often find myself drawn to tasks that not every team member may be keen on, such as product management or technical aspects.

Previously, the game studio I worked for, known as PlayRaven, got bought by Rovio. Our headquarters were located in Helsinki, Finland. The foundation of Metaplay comes from that experience, which has direct relevance to current events in the Finnish gaming sector. We frequently interacted with neighboring studios since Finland is a highly collaborative environment. In time, we found ourselves exchanging numerous stories with these studios, and it became clear that the issue we faced wasn’t unique but rather a valuable problem worth addressing for other studios experiencing similar challenges at this point in their development.

Our experience boosted our conviction to establish a firm focusing on resolving the technology challenge of creating free-to-play games. With faith as our guide, we embarked on this journey, identified our initial customer base, and more. The gaming community played a crucial role in not only keeping us present in the gaming world but also instilling the bravery to initiate a game company and venture into its business aspects. This collaborative spirit is deeply rooted in my motivation for being involved in games.

2. What historical factors contributed to Finland becoming a hub for mobile game development as we know it today?

As a dedicated gamer, I’ve pondered your intriguing question for quite some time. In my humble opinion, I can narrow it down to three key points that might shed some light. To begin with, Nokia was more than just a trendsetter; it revolutionized the mobile phone industry by making it mainstream and popularizing the technology. Beyond its technological prowess, it held immense significance for Finland’s economy as a major player.

Nokia stood as a significant force, pioneering mobile phone technology not only before its time, but also playing a considerable role in boosting Finland’s economic landscape.

Universities and education were significantly propelled by Nokia’s impact. By investing heavily in mobile computing research, Nokia sparked an idea that thousands of Finnish companies could contribute to, creating devices, software, games, and more. Essentially, Nokia paved the way for the emergence of a vast number of Finnish gaming industries. It served as a catalyst for the Finnish industry, setting the stage for many successful Finnish companies that we recognize today, similar to what the iPhone represented at its inception.

If Nokia represents a significant business and ecosystem, there are underlying cultural aspects that have persisted over time. One such element is the demo scene, an intriguing niche phenomenon particularly popular in Finland. This community focused on artistic coders who aimed to explore the limits of computer capabilities, similar to how game developers push boundaries. To excel, one needed exceptional skills in extracting optimal performance from a computer and creating something artistically profound.

Although the demo scene doesn’t directly tie to gaming entirely, it has significantly influenced many game developers we see today. These individuals found inspiration within it. Unlike modern game development which often revolves around business aspects, the demo scene emphasized the craftsmanship of creating things. This creative focus was rooted in a long history of hobbyist interactions with technology and computers, particularly software development.

In my opinion, the third key aspect is the Finnish design philosophy, which embodies our national identity. I’d describe it as ‘understated design,’ a term that signifies its simplicity, its quiet confidence that this humble artifact holds significance and will be appreciated, rather than being overly ornate like Russia, whose historical design leans more towards opulence and grandeur. In contrast, we have always been the antithesis of such extravagance.

In my opinion, an appealing design approach proves effective when applied to user interfaces, systems, games, and economic structures, particularly in the creation of casual games. This strategy is successful because it manages to combine immediate playability, simplicity, and rapid learning with a high level of quality and thoughtful depth. I believe this unique combination is a defining characteristic of Finland.

3. You touched upon the universities and education while discussing Nokia, we are curious to know has the education system in Finland influenced the growth of mobile game studios?

It’s fascinating that your question aligns perfectly with my Master’s thesis! You see, I’ve been involved in a close-knit community of academics and game developers who have been collaborating on university-based game studies for quite some time. We’ve known each other for years and often cross paths at industry events. This partnership has spanned over a decade.

From this particular endeavor, not only for the purpose of enhancing Finnish education generally and specifically serving the games industry, some dedicated individuals have tirelessly worked, pouring their effort, energy, and passion into it. I hold them in high esteem. They have successfully established a system that commences with kindergarten, offering evening clubs for children who exhibit an affinity for working with computers. In various cities, they provide gaming or game development-related hobbies, which pave the way for further growth steps.

Entering a lower elementary school sets up a system where you’ll find necessary skills at your disposal. If your interest is piqued, this could even lead to a potential career path. This journey extends to universities, where students strive to acquire the real-world abilities that studios require. It’s been a long and challenging road, but I’m pleased to report that today we do have a system in place for cultivating student work of sufficient quality. Companies can then further refine this material to make it useful.

Regarding your query on the position’s role, it’s worth noting that historically, recruiting individuals into Finnish game companies has been more straightforward from Brazil compared to Finland. This is a well-known jest, but there is truth behind it. Our industry has had a substantial Brazilian presence due to our size and reliance on imports. Moving on to your second point, we often discuss expanding our industry through education and immigration to Finland, as these are the primary methods available for us. However, both paths present challenges.

4. What role do government policies and support play in nurturing the mobile gaming industry in Finland?

Fortunately, we find it relatively straightforward to work with our administration. Their impact on a startup aiming to create mobile games primarily comes through grants and financial aid, which serve as their primary influence. Grants are available for specific areas, but not for all.

In summary, it’s been more feasible to accomplish tasks when there are available grants. An interesting tidbit is that we have an organization known as Business Finland, which assists in the establishment of new businesses, distributes grants, and so forth. Traditionally, Business Finland hasn’t provided grants for games, hence it was impossible to secure grants to aid you in finding a studio or any other assistance. However, they did offer grants to support companies investing in technology.

It’s common knowledge that the Finnish government has invested significantly in game engines, requiring studios to create games using these engines as proof of eligibility for funding. As a result, our country has become more focused on technology in this area, as it was the predominant resource available.

Since then, our interactions with the Finnish government have been somewhat unpredictable due to their significant earnings from mobile gaming industries, which are profitable and scalable businesses that many value. However, from their perspective as a government, they grapple with the dilemma of funding speculative artistic projects, some of which could potentially yield billion-dollar returns while others might not amount to anything. This is indeed a tricky policy decision they face.

In essence, when it comes to creating a game, I’m uncertain if we can offer substantial assistance in that regard. However, regarding policies, we currently don’t face significant challenges, even on an EU level. We do have discussions about acceptable gatchas and how GDPR impacts studio analytics, but these are not factors that typically determine a business’s success or failure.

To clarify for those less familiar, the Digital Markets Act (DMA) primarily aims to dismantle the monopolies held by large online retailers. In terms of policies that impact developers, I’d contend that it’s the platform policies – rather than government regulations – that pose the most significant and restrictive challenges for a startup in Finland. These platform policies are often implemented not solely with the best interests of developers in mind but to serve the platforms themselves.

One method of rephrasing this statement could be: The DMA and EU aim to dismantle the essentially monopolistic and harmful market control, fostering a landscape where diverse game stores and distribution channels can thrive. I’ve noticed in Finland, as well as here, that there’s a strong desire among many individuals to create a wider variety of games, but they often face financial obstacles due to the limitations imposed by existing platforms.

I’m quite optimistic that if we make our platforms accessible, we’ll likely foster a richer and more varied gaming landscape, featuring an array of engaging games from a greater number of lesser-known game developers who might thrive in the process. However, it’s important to remember that nobody can accurately foresee exactly what the future holds.

I think it’s intriguing to consider Epic as a significant competitor, given their success in launching the Epic Games Store on PC. It’s plausible they might venture into mobile markets too. Additionally, I believe the open-source and independent game development communities could provide substantial competition as well.

There’s been a push to create additional open-source and community-driven marketplaces similar to itch.io for games. These platforms, though specialized, play a significant role due to the unique content they offer compared to Steam. They serve distinct audiences, and it’s ideal if both can thrive simultaneously. I aspire for a scenario where diverse options prevail rather than one dominant force, even in emerging game-centric marketplaces.

5. How has the success of companies like Supercell and Rovio inspired the growth of other mobile game studios in Finland?

It’s quite clear that my game development company, Play Raven, wouldn’t have been around if not for Supercell’s significant contributions. In fact, I can confidently assert that our existence is directly linked to their success. As Supercell thrived, their effective PR strategies and other aspects earned them a reputation as the ‘benefactors’ or ‘pioneers’ in the gaming industry.

As a dedicated enthusiast, I’ve been instrumental in fostering relationships by extending my network to others, opening up possibilities that may have otherwise remained elusive. This includes establishing contacts with giants like Apple and Google, as well as securing venture capital funding. It’s incredible how, all of a sudden, I found myself in conversations with these influential figures who might not have given me the time of day before. And lo and behold, Finland has been catapulted onto the global stage, thanks to trailblazers like Supercell and Rovio.

In my enthusiastic recount, I’d say: Back in the day, Raven Studios managed to convince investors to back our vision, and we seized the opportunity to connect with top-tier Apple professionals to gain insights into their platforms and how best to tailor our games for Apple devices. Our games often graced the “Game of the Week” or were prominently displayed in banners, which I believe was a result of these valuable interactions that allowed us to align our work with their market needs.

Essentially, there’s a powerful cycle where big companies like Supercell, Netflix, and others exert significant influence on various aspects. This might be explained as an intensely competitive job market, particularly for skilled employees, due to giants such as Netflix offering exceptionally high salaries. This policy attracts developers who prioritize income over other values, potentially squeezing out smaller companies in the process as they struggle to compete financially for top talent.

Working at studios in Finland can sometimes be costly due to various reasons, which may require them to be innovative about their appeal or demonstrate the significance and value of their work despite lower wages. However, this situation might ultimately prove beneficial for the Finnish ecosystem as a whole, because it fosters competition for talent. In simpler terms, the challenge of attracting skilled workers can drive studios to offer more meaningful and rewarding experiences, making Finland a desirable place to work.

In contrast to countries like the USA or UK, we don’t typically have unions here due to different industry dynamics. Our workforce is highly valued, and because there’s intense competition for top talent, we don’t need as much protection as other sectors might require. This situation is often a result of having only a few highly successful studios in our relatively small country.

6. In what ways has the local talent pool in Finland contributed to the success of its mobile game studios?

Let me share an anecdote based on Supercell’s CEO, Ilkka Paananen’s perspective. During a public talk, he emphasized the idea of having autonomous teams at Supercell, allowing them to take charge of their own projects. He made a notable statement: “The best people don’t always make the best teams.” This notion, I believe, is crucial. Hiring top talent and offering excellent benefits doesn’t necessarily guarantee a high-performing team.

While it’s essential to recruit top talent and offer competitive benefits or remuneration, it doesn’t guarantee that your team will consistently perform at a high level. Other factors such as communication, collaboration, and a positive work environment also play crucial roles in fostering a successful and productive team.

Startups have a competitive edge due to their optimal teams, which are typically small (as few as five individuals). These compact teams can often produce results equivalent to much larger groups because they execute efficiently without the red tape associated with larger organizations.

In many creative communities, it’s not uncommon for individuals who have spent several years in larger studios to feel a desire for change. This could be due to growing discontentment with the pace of work or simply boredom from focusing on one project for an extended period. Sometimes, they might harbor a vision for a new project and possess sufficient financial resources to afford a pay cut if it means pursuing their passion.

In this era of advanced AI and potential shifts in platform regulations, even small, agile teams could capitalize on opportunities that were unimaginable just two years ago. This is why we continue to see innovative startups emerging from larger studios with the goal of creating remarkable new things.

In essence, it seems to me that within our field, there’s significant worth associated with larger corporations maintaining collaborative teams who consistently strive towards a common objective each day, delivering code free of bugs, maintaining a fair game balance, introducing fresh content, and more.

Simultaneously, we encourage these quirky and innovative small businesses to explore, experiment, and even try out the bizarre – who knows, something they do today might turn out to be fantastic tomorrow. Throughout your career, you might find yourself switching work modes frequently as boredom or inspiration may strike. This dynamic seems to be key and explains why it continues to thrive over time. It’s not that everyone is drawn to one place and stays there forever.

7. How have international investments and partnerships influenced the growth of Finland’s mobile game studios?

Initially, it’s crucial to emphasize the significance of our endeavor. In the dynamic, competitive world of game development where success often hinges on hit games, resources are always substantial due to the necessity of outshining numerous established and prosperous titles. Given Finland’s historical lack of wealth and absence of generational riches, external funding is typically indispensable. In other words, projects requiring millions, such as a five-million dollar game, simply can’t be self-funded.

The resurgence in the contemporary mobile industry can be traced back to Rovio and Roberts finding success and paving the way for others. They effectively mastered the art of Silicon Valley-style pitching, a crucial skill that many here have come to understand. This skill is widely practiced and can be learned, making it an achievable goal for anyone eager to follow in their footsteps.

The influx of investors viewing Finland as a potential investment destination, along with the realization that it could be profitable, results in a wealth of available capital and expertise on how to present pitches effectively. This trend mirrors what has occurred in other countries where innovation, such as the iPhone revolutionizing the mobile market, sparked a rapid growth cycle where opportunities seemed limitless. From an investment perspective, the speed at which the market expanded made it feel like you could invest in virtually anything and reasonably expect to recoup your investment.

1. The UA (User Acquisition) strategy was severely impacted when Apple implemented the IDFA change, along with GDPR and other simultaneous events. This shift dramatically reduced the scalability of the existing user acquisition strategies. It took a few years for this change to affect investments, but it’s clear to see a direct correlation between these events and global investors losing faith that a new game could organically grow in the market.

1. The focus significantly moved towards creating a highly successful game, with substantial investments poured into it only after it had achieved some level of success, often amounting to hundreds of millions of dollars. This strategy, combined with the prolonged effect of reduced investment in Finland and the economic impact of Russia’s attack on Ukraine (which led to market instability and inflation, exacerbated by COVID-19), caused a substantial financial downturn for a significant period.

The accumulation of various economic factors ultimately resulted in increased interest rates, signaling a heightened caution among investors regarding their investments. In essence, these combined macroeconomic indicators seem to be suggesting, “Perhaps it’s advisable to be cautious when investing in games.” This is the general message that these trends appear to convey simultaneously.

In the Finnish gaming market, this situation is often likened to a ‘valley of death’. There are some exceptions that receive funding regardless of their merit, perhaps due to being an established company, having a well-known name, or already possessing wealth. However, for newcomers, securing funding remains a challenge. This trend has been disruptive, leading to a significant decrease in the number of companies receiving new funding, and making it nearly impossible to secure second-round funding at present. Consequently, if a company received funding five years ago but hasn’t had a major hit game since then, they find themselves in a precarious position now.

If your game is a success, you won’t require financial aid. This can be quite challenging, as many businesses have folded due to their inability to secure additional funding. Nevertheless, some firms have been able to reduce their staff and cut expenses to navigate through this predicament. It hasn’t been an easy ride for those in such situations. However, I believe this is merely a temporary downturn, and we’re now seeing the beginning of an upturn. New businesses are emerging, and these trends are just the big picture.

The impact of capital and financial markets on company formation is substantial, as we can observe in this initial phase. Whether it rises and falls again remains to be seen, but we might find out if it follows a predictable pattern in another 10 years.

8. What future trends do you foresee for Finland’s mobile gaming industry, and how will it continue to evolve?

Predicting the future is challenging, but there’s one trend I’m certain will prevail: the success of “games-as-a-service” model across all distribution platforms. This trend has already proven fruitful in mobile gaming, and it’s intriguing to see how it unfolds on emerging platforms and new stores. The live service game model not only benefits developers by providing a decent income, good working conditions, and eliminating crunch time, but it also appeals greatly to the masses due to its free nature.

I am quite certain that the growing trend of “games as a service” will triumph on every possible distribution platform without fail.

In summary, since players can only participate in limited service games at once, the competition will be extremely intense to become one of those games. To reach this goal, your game should offer exceptional relevance. This means it needs to resonate with human players, which often involves providing captivating real-time updates, strong branding, and a thriving community – all of which require considerable time and effort and are developed gradually.

Therefore, it’s clear that prosperous video games predominantly rely on live operation, just like Fortnite does. Companies such as Supercell are leading this trend, and teams with expertise in live operations will thrive because these games generate significant revenue. This success is facilitated by exceptional product management, project management skills, and appropriate tools.

In simpler terms, our role at Metaplay is creating innovative tools, and I must say, that’s quite exciting! Our aim is to develop solutions that don’t exist currently, enabling small teams of five to ten individuals to expand into large-scale operations capable of managing games with hundreds or even thousands of players.

This transformation we’re working on is quite challenging, and our primary focus is on developing the necessary tools and technology to make it happen. This isn’t limited to the mobile market; this trend will be particularly pronounced in cross-platform games and even console, dedicated platform games. Over time, all these platforms will likely become live services, with mobile leading the way. That’s why Metaplay is primarily focusing on mobile games initially. As we learn more about industry patterns and best practices that can be turned into products, we plan to expand our focus to other platforms and cross-platforms as well.

(on game discovery) What I think is a little more speculative but super interesting involves the DMA and the platforms opening through EU regulations, hopefully propagating to the rest of the world. I would really hope that when I say live service games, the one thing I hate about the industry today is specifically how discovery does not work on any platform.

The only way to find a game today is to see an ad or have somebody tell you about it; a friend or an ad, and then you deep link into a place to download it. There are zero functional resources for a casual person to just find a game. This problem needs to change, and it has to be solved by somebody somewhere. I hope that with these new platforms and stores, we can find better ways to discover games, similar to how Steam was a much better way to discover games than going to GameStop.

In essence, I’m eagerly anticipating that Epic might share their strategies for igniting enthusiasm among players to explore fresh content. Proceeding along this line of thought, I aspire that this results in the emergence of profitable game genres. Given the challenge of discoverability nowadays, it’s crucial to develop a game that can effectively display ad performance.

That is the lynchpin of whether you can be successful. It means you can get creative with your themes, which is fantastic, and find something that resonates more, leading to cheaper ads. But fundamentally, your game has to make more money than your neighbor’s. It doesn’t have to be a better game, just more profitable so that you’re able to show ads and people will find your game. I hope that there will be more ways to create “good games” that can be slightly less profitable because there will be other ways for you to be discovered rather than just thinking “can I out beat my neighbour on an ad?”

If this occurs, it would result in a more diverse gaming landscape, enriched with a variety of games that I’m excited about. This scenario also allows smaller teams to develop less mainstream games, fostering unique businesses that may be less influenced by the strategies used by big players on advertising channels or less reliant on the whims of Apple’s or Google’s daily features. That’s the world I aspire for, but I’m unsure about how we can achieve it.

9. Can you share any success stories or notable projects that have emerged from MetaPlay’s initiatives in the mobile gaming sector?

While I may find it amusing to claim full responsibility for the games created using Metaplay, the truth is I cannot. What I can share is that we collaborate extensively with various studios to enhance Metaplay’s functionalities, enabling them to develop projects they otherwise couldn’t. Once these advancements are incorporated into a product, we make it accessible to other developers who find the concept appealing and adapt their strategies accordingly. This process often sets a new standard, allowing us to incorporate some of our customers’ innovative ideas into our own best practices, creating new best practices that were previously non-existent.

Among the concepts I’ve recently encountered, one particularly intriguing one is spearheaded by Rovio and possibly Supercell in Finland – it’s the first I’ve heard about in this context. There might be disagreement over my categorization of how to efficiently manage live operations in a game. Traditionally, it was believed that you had developers creating new features, others maintaining the game, and eventually, this evolved into a more effective approach called having a dedicated live team.

In simpler terms, let’s discuss game designers for clarity. One game designer creates new features, but they don’t have the authority internally to adjust the game’s economic balance. Altering the economy can potentially disrupt the entire game by making items too cheap or progression excessively difficult. Therefore, you have two professionals who rarely interact with each other. Notably, the person responsible for the economic balance has traditionally played a significant role in live updates.

Now, it’s interesting to note how Rovio employs Beacon, their internal tool, which is quite impressive. They’ve added a new team member, specifically a third designer, who focuses exclusively on managing live operations and scheduling them. Remarkably, this individual does not have the authority to directly manipulate the game’s economy.

As a passionate fan, I’m excited to share that our team has evolved from two departments into a trio! Now, we have a dedicated group focusing on developing new features, another ensuring the game system’s longevity, and a third working tirelessly on live content. This dynamic setup maximizes fun by scheduling events appropriately, offering rewarding experiences, and creating engaging challenges that truly bring our game to life!

To facilitate this within Metaplay, I’m currently creating a comprehensive visual timeline that outlines the entire game’s schedule over multiple years. This timeline includes all the events you’ve played so far as well as those we have planned for the future. By doing this, we can better understand how these events align with game updates, in-game events, A/B tests, client updates, and more.

This setup enables you to view the game as an expansive timeline, enabling you to tweak minor details, fill in gaps with new content, and design it in such a way that requires minimal technical skills; a role perfect for a designer who isn’t proficient in coding, prefers avoiding Unity, or steers clear of intricate economy spreadsheets in Excel, but excels at planning events on a calendar and visualizing enjoyable gameplay through scheduling.

Here’s my take on paraphrasing the given text in a first-person perspective as a fan:

There are similar examples where we talk about the live operations of many games, where there’s a huge amount of life hacks around the studios that we keep integrating into our SDK. I find that motivating because it’s not just about making features; it’s about thinking, “how do we do games and what meaningful change can we make? What can we do better?” AI is going to be a big one. I was just talking before this call about how to utilize that effectively in what we do and, by extension, what our customers do.

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2024-09-02 21:13