The German MMO studio YAGER in Berlin is 20 years old and has 110 employees. They have now entered into a strategic partnership with gaming giant Tencent. We interviewed YAGER’s CEO, Timo Ullmann, and asked him how it feels to be alongside the big players.
On February 10, it was made public that Tencent has made a strategic investment in the Berlin studio YAGER. Tencent is huge: In 2018, they generated 7 times more revenue than Activision Blizzard in one quarter.
Tencent is known for investing in high-profile gaming studios that are then largely left to operate unhindered. Tencent is involved in:
- Riot Games (League of Legends)
- Epic Games (Fortnite)
- Bluehole (PUBG)
- Grinding Gear Games (Path of Exile)
- Supercell (Clash of Clans)
- Funcom (Conan Exiles)
And now also in the German studio YAGER. They have already developed an MMO with Dreadnought, currently have a Free2Play action game called The Cycle in live operation, and are already working on an unannounced title.
We interviewed YAGER’s CEO, Timo Ullmann.
At YAGER, they speak English and Berlin dialect
MeinMMO: Hello Mr. Ullmann, you lead a studio with 110 employees in Berlin. What percentage of your workday do you speak German and how much English?
Timo Ullmann: We predominantly speak in English with each other, and the small remainder is conducted in pure Berlin-accented German.
MeinMMO: In international press, YAGER is referred to as “the studio that made Spec Ops: The Line.” That is a game from an established franchise. Is that acceptable to you, or would you rather be known as the studio that made “Dreadnought” or “The Cycle“, something completely original?
Timo Ullmann: I have no problem with that at all. We love all our games, and while Spec Ops: The Line is based on a franchise, it is not widely discussed nowadays.
Our game, on the other hand, has developed into a cult hit, especially due to the way we approached the subject. Thus, it is also a YAGER game, even if we do not own the brand.
Establishing a new IP is not easy, so we are very pleased to be working on The Cycle, a game that we are developing and marketing ourselves. And we already have a large player base that associates YAGER with The Cycle.
MeinMMO: Could YAGER be considered an MMO studio today?
Timo Ullmann: I definitely think so. Dreadnought and especially today The Cycle are both games that have a large player base, around the world, and online as well. Especially with The Cycle, we are exploring a new type of multiplayer, whether PvP or cooperative.
MeinMMO: YAGER received the German Developer Award for Best Studio in 2019. Has that increased your visibility? Do you feel that gamers in Germany know your studio, or is YAGER still somewhat under the radar for gamers here?
Timo Ullmann: We were thrilled with this recognition, which we have received for the second time since 2012. It is a great honor for us. I don’t actually know how well the German Developer Award is known among players. I think, as a studio, YAGER is not so known among players in Germany, unlike the games we make. However, we are well established in the German developer landscape, and have been for over 20 years.
MeinMMO: Recently, a reader wrote to us saying he had played this great game “The Cycle,” but he hardly reads anything about it. I noticed that too: The Cycle is rarely discussed. On Twitch, the game is ranked around 350 in the last 180 days. Dreadnought seemed to have had the same fate, from my observation. How hard is it for a studio to appear in international gaming press or to get on the radar of influencers?
Timo Ullmann: The Cycle is still relatively new; currently, we are in early access on the Epic Games Store. We are continuously working on new features and are also actively communicating with our community to incorporate feedback into the game. We have a lot ahead of us, and things are going quite well.
At the beginning of February, season 2 started, and we can see from the growing participation of players and influencers that we are on the right track. It is indeed a challenge to launch a new game in the market and in the press, especially if it is a Free2Play game.
Our goal is to establish a new and innovative gaming experience with The Cycle and to compete alongside the biggest representatives of the genre. I believe that with our interesting approach to developing a quest shooter with a mix of PvEvP elements, we are on the right path. The response has been overwhelmingly positive.
YAGER specializes in Action
MeinMMO: YAGER has been around for over 20 years in Berlin. Germans are known for their love of real-time strategy games. Other German companies have made a lot of money with mobile strategy games in recent years. Don’t you eventually feel tempted to say: Let’s go in that direction?
Timo Ullmann: YAGER’s strength as a studio lies in action games. With interesting characters/stories and fascinating worlds. We feel absolutely comfortable in this area. It is a broad spectrum when you look to align Dreadnought and The Cycle. Furthermore, we want to support all platforms where we can find an audience, from mobile to PC and consoles to streaming.
Tencent brings global market access for YAGER
MeinMMO: After so long, Tencent has now joined you. When looking at what Tencent has invested in before and what games they have attracted: Path of Exile, Conan Exiles, PUBG, Fortnite, LoL. Is this like a knightly accolade when they come calling?
Timo Ullmann: We do consider it an honor when you look at the portfolio of investments. It’s a “who’s who” of the industry. However, what was more important to us was gaining access to know-how and continuing to learn, in addition to financial resources. That’s why we consciously chose Tencent.
MeinMMO: Is an offer from Tencent one that “can’t be refused,” or do you hesitate longer?
Timo Ullmann: As mentioned earlier, YAGER receives not only financial resources from Tencent’s minority investment but also know-how and access to a global market. Throughout our now 21-year history, we have periodically addressed how we can better position ourselves as an independent development studio. Management has faced the question of how to reconcile creative freedoms with strategic goals.
I think we wanted to be in a position to not only conceive and develop our games, but also to market and evaluate them. The value creation should benefit the studio and thus lay the foundation for further development of YAGER.
YAGER has a lot in store – The Cycle is set to come to consoles and mobile
MeinMMO: Tencent reportedly invested $330 million in Epic Games in 2012. The head of Epic said the investment enabled a new strategy. They were able to readjust and reinvent the company. 5 years later, Epic released Fortnite and became a dominant force in gaming over the next few years. What are your plans for the next 5 or 10 years, Mr. Ullmann?
Timo Ullmann: YAGER has a lot planned. It is clear that we want to continue making games, preferably together with our players. The Cycle is currently available in Early Access on the Epic Games Store, and we want to release it on consoles as well as on mobile platforms. This is definitely not a sprint but a marathon.
In addition, we are already working on a second, yet to be announced project. We are expanding our team and working on new concepts. The gaming industry is constantly changing, so long-term forecasts are difficult. But as long as people enjoy our games, we will continue to develop ourselves and our projects.
MeinMMO: Mr. Ullmann, thank you very much for the conversation.
In addition to YAGER, there are other successful studios in Germany, such as Innogames, which fully embrace the Germans’ love for strategy:
