Digital Illusions Licenses Out The Development Of More Games

Digital Illusions
Licenses Out The Development Of More Games

October 29, 2005 — Digital Illusions untitled
game which is being launched in 2006/2007 will also be developed for Sonys
Playstation Portable (PSP). Digital Illusions licenses the right to develop the
product for PSP, Xbox and Playstation 2 (PS2) to Electronic Arts’ studio in
Great Britain. Furthermore the Company announces that the PSP version of
Battlefield 2 Modern Combat is out on hold.

To Digital Illusions licensing is an attractive
solution since the Company doesn’t have enough resources personnel-wise to
produce versions for all platforms internally at the moment, said Patrick Söderlund, CEO at Digital Illusions.

In the games sector, major games are released for
all significant platforms simultaneously in order to achieve maximum coverage
and revenues. Digital Illusions focuses on rapidly becoming one of the leading
developers for the next generation’s platforms – Xbox 360 from Microsoft and
Playstation 3 from Sony. For the moment, the Company does not have sufficient
personnel resources to simultaneously develop several different games for all
significant platforms. For Digital Illusions it is therefore an attractive
solution to license out the production for certain platform versions, because it
enables the Company to obtain a greater product portfolio without additional
costs.

Digital Illusions licenses the right to develop
the PSP, Xbox and PS2 versions of the untitled game to Electronic Arts (EA). The
PSP version is a new contract while the Xbox and PS2 versions were planned to be
developed internally earlier. Now the development is moved to EA’s UK studio
instead.

In the licensing model, Digital Illusions does
not have any development costs. The Company therefore receives royalties as of
the first sold game for the platform, instead of when the game has first covered
its development budget. At the same time, Digital Illusions receives a lower
royalty level per sold game because the product is developed externally.

Because Digital Illusions owns the brand, the
Company shall approve the product being developed externally, before it reaches
the market.

The untitled game for PSP, Xbox and PS2 is
planned for a 2006/2007 debut, at the same time as the product’s versions for
the next generation consoles Xbox 360 and Playstation 3 are launched. Publisher
of the game is Electronic Arts.

The PSP version of Battlefield 2 Modern Combat,
planned to be launched during the first quarter of 2006, is put on hold. The
foremost reason is lack of personnel resources. If and when it will be released
is yet to be decided. Battlefield 2 Modern Combat will be launched for Xbox and
PS2 during the forth quarter 2005, and for Xbox 360 during the first quarter
2006.