The document discusses the history and current state of the video game industry in Romania. It begins by defining the term "1337" and its origins in computer hacking culture. It then provides a brief history of early mainframe computers and microcomputers developed in Romania in the 1950s-1970s. It outlines the emergence of an indie game development scene in Romania in the 1990s and 2000s, as well as the presence of major international studios like Ubisoft, EA, and Gameloft. It analyzes opportunities and challenges for the industry, noting the lack of funding, publishing support, and specialized education. It proposes several state incentives to further develop the games industry in Romania and boost the local economy.

1. THE 1337 PLAYBOOK
1337: /ˈliːt/ (adj.)
Derived from the word “elite” (colloquially, “leet”), describing formidable prowess or
accomplishment, in the fields of online gaming or computer hacking; originating from
31337, the UDP port used by the hacker group “Cult of the Dead Cow” to access
Windows 95 using Back Orifice, a notorious hacking program.

2. Best in the world via collective action.
THESIS

3. Why should we care?

5. Finite natural resources,
(theoretically) infinite human potential.

6. } development model:
Build a sustainable economy,
that efficiently leverages local talent,
to produce world-class competitive value,
in a manner that enhances the country brand.

7. Software is eating Romania.
6.7% of the economy in 2015, growing at 10%+ per year.
65% of the economy in 25 years, 30B euro per year.
Source: ANIS “Software and IT Services in Romania” 2015.

8. } Cultural Transmission = Entertainment

9. Source: SuperData Global Games Market Report May 2015.

11. Romania = $126M, ranked #47

12. Games are aggregators of art forms + high tech.
Traditional Art Cinema Music Performance Writing
Daniel Dociu Radu Jude Silent Strike Alina Cojocaru Mircea Cărtărescu

13. Games will be the leading form of cultural
transmission of the XXI Century.

14. Poli Sci @ UCLA
Activision
Electronic Arts
Disney
Samsung
Mihai

15. History

16. Moisil

17. The Mainframes
1957: CIFA-1 @ Atomic Physics
Institute in Bucharest, by Victor
Toma
1962: MECIPT-1 @ Polytechnic
University of Timisoara, by Iosif
Kaufmann & Wilhelm Loewenfeld
1963: DACICC @ Computing
Institute of Cluj, by Tiberiu
Popoviciu

18. The Mainframes
1957: CIFA-1 @ Atomic Physics
Institute in Bucharest, by Victor
Toma
1962: MECIPT-1 @ Polytechnic
University of Timisoara, by Iosif
Kaufmann & Wilhelm Loewenfeld
1963: DACICC @ Computing
Institute of Cluj, by Tiberiu
Popoviciu

19. The Microcomputers
1967: Computing Technology
Institute (ITC) founded in Bucharest
1970: Felix C-256 released, based
on the French IRIS 50 computer,
further inspired from the IBM
System/360
1974: First Romanian-made
microcomputer released,
Independent-100

20. The First Romanian Game
1976: The Felix - Şah chess game was
developed for Felix C-256 by Viorel Darie at
ITC in Bucharest.
1984: A multiplayer chess game was
organized between an I-100 terminal at
Casa Scânteii, controlled by Octavian Paler,
connected via modem to a Felix C-256 at
ITC Bucharest running an improved version
of Felix - Şah called Felix 64.

21. 1980s: (Pirated) Games
Sinclair Spectrum ZX
Электроника 302
Commodore 64
HC 85

23. 1990s: The Pioneers
1991 – Ubisoft Romania founded, led by Laurentiu
Rusu (1991-2001), with support from Andrei Lopata.
Currently 1,200 staff, led by Sebastien Delen (1998-
now).
1994 – AMC founded, starting in games dev in 1998.
Led by Cristina Neamtu, specializes in art
production since 2000, currently 100 staff.
1995 – Activ Pub founded, releases Rival Realms in
1998, published by Digital Interactive (UK) and Titus
Software (ROW)
1996 – Game Over magazine launched (16 issues)
1997 – Level magazine launched (active until 2013,
afterwards morphed into NIVELUL2)
1998 – FUN labs, led by Adrian Filippini, currently 30
staff
1999 – Nemira attempts to develop an RTS called
“Zamolxis”, led by Andrei Fantana

24. 1990s: The Pioneers
1991 – Ubisoft Romania founded, led by Laurentiu
Rusu (1991-2001), with support from Andrei Lopata.
Currently 1,200 staff, led by Sebastien Delen (1998-
now).
1994 – AMC founded, starting in games dev in 1998.
Led by Cristina Neamtu, specializes in art
production since 2000, currently 100 staff.
1995 – Activ Pub founded, releases Rival Realms in
1998, published by Digital Interactive (UK) and Titus
Software (ROW)
1996 – Game Over magazine launched (16 issues)
1997 – Level magazine launched (active until 2013,
afterwards morphed into NIVELUL2)
1998 – FUN labs, led by Adrian Filippini, currently 30
staff
1999 – Nemira attempts to develop an RTS called
“Zamolxis”, led by Andrei Fantana

25. 1990s: The Pioneers
1991 – Ubisoft Romania founded, led by Laurentiu
Rusu (1991-2001), with support from Andrei Lopata.
Currently 1,200 staff, led by Sebastien Delen (1998-
now).
1994 – AMC founded, starting in games dev in 1998.
Led by Cristina Neamtu, specializes in art
production since 2000, currently 100 staff.
1995 – Activ Pub founded, releases Rival Realms in
1998, published by Digital Interactive (UK) and Titus
Software (ROW)
1996 – Game Over magazine launched (16 issues)
1997 – Level magazine launched (active until 2013,
afterwards morphed into NIVELUL2)
1998 – FUN labs, led by Adrian Filippini, currently 30
staff
1999 – Nemira attempts to develop an RTS called
“Zamolxis”, led by Andrei Fantana

26. 1990s: The Pioneers
1991 – Ubisoft Romania founded, led by Laurentiu
Rusu (1991-2001), with support from Andrei Lopata.
Currently 1,200 staff, led by Sebastien Delen (1998-
now).
1994 – AMC founded, starting in games dev in 1998.
Led by Cristina Neamtu, specializes in art
production since 2000, currently 100 staff.
1995 – Activ Pub founded, releases Rival Realms in
1998, published by Digital Interactive (UK) and Titus
Software (ROW)
1996 – Game Over magazine launched (16 issues)
1997 – Level magazine launched (active until 2013,
afterwards morphed into NIVELUL2)
1998 – FUN labs, led by Adrian Filippini, currently 30
staff
1999 – Nemira attempts to develop an RTS called
“Zamolxis”, led by Andrei Fantana.

27. 2000s: An Industry Emerges
1999 – Gameloft Romania founded, led by Andrei
Lopata (1999-2002) and Paul Friciu (2002 - now).
Currently has 1,100 staff located in Bucharest and
Cluj.
2002 – Exosyphen, led by Robert Muresan, went
on to develop Hacker Evolution, number 4 best
seller on Steam in 2010
2005 – Mobility, led by Costi Marcu, Iasi,
developed Frozen Free Fall, published by Disney,
top 50 grossing iOS game in 2014-2015, >$100M
gross revenue
2005 – JAMDAT Mobile Romania founded,
acquired by EA in 2006 to become EA Romania,
led by Alex Marinescu, Dan Teodorescu, Vlad
Beu, currently 1,500 staff.
2007 – Vivendi Games Mobile established, in
2008 becomes Namco Bandai, 150 staff, led by
Andrei Lopata.

28. 2000s: An Industry Emerges
1999 – Gameloft Romania founded, led by Andrei
Lopata (1999-2002) and Paul Friciu (2002 - now).
Currently has 1,100 staff located in Bucharest and
Cluj.
2002 – Exosyphen, led by Robert Muresan, went
on to develop Hacker Evolution, number 4 best
seller on Steam in 2010
2005 – Mobility, led by Costi Marcu, Iasi,
developed Frozen Free Fall, published by Disney,
top 50 grossing iOS game in 2014-2015, >$100M
gross revenue.
2005 – JAMDAT Mobile Romania founded,
acquired by EA in 2006 to become EA Romania,
led by Alex Marinescu, Dan Teodorescu, Vlad
Beu, currently 1,500 staff.
2007 – Vivendi Games Mobile established, in
2008 becomes Namco Bandai, 150 staff, led by
Andrei Lopata.

29. 2000s: An Industry Emerges
1999 – Gameloft Romania founded, led by Andrei
Lopata (1999-2002) and Paul Friciu (2002 - now).
Currently has 1,100 staff located in Bucharest and
Cluj.
2002 – Exosyphen, led by Robert Muresan, went
on to develop Hacker Evolution, number 4 best
seller on Steam in 2010
2005 – Mobility, led by Costi Marcu, Iasi,
developed Frozen Free Fall, published by Disney,
top 50 grossing iOS game in 2014-2015, >$100M
gross revenue
2005 – JAMDAT Mobile Romania founded,
acquired by EA in 2006 to become EA Romania,
led by Alex Marinescu, Dan Teodorescu, Vlad
Beu, currently 1,500 staff.
2007 – Vivendi Games Mobile established, in
2008 becomes Namco Bandai, 150 staff, led by
Andrei Lopata.

30. 2010s: Dawn of the Indies
2011 – Atypical Games (formerly Revo
Solutions), independent, led by Andrei Lopata,
34 staff. Releases Sky Gamblers in 2012,
followed by Battle Supremacy in 2014.
2012 – MavenHut, independent, Bobby Voicu,
Cristi Badea (RockYou franchise acquisition in
2015)
2013 – Amber, independent, 200 staff, led by
Dragos Hancu.
2015 – Carbon, first independent games
incubator/accelerator in Romania, led by
Catalin Butnariu.

31. Company
Revenue
(USD)
Staff Founding Year
Ubisoft $ 36,656,699 1220 1991
Electronic Arts Romania $ 33,322,782 440 2005
Gameloft Romania $ 25,699,488 1181 2004
King Games Studio $ 8,608,508 92 2013
Amber Studio $ 4,902,206 127 2013
Mobility $ 4,495,374 18 2005
Mavenhut $ 3,013,662 30 2012
Namco Bandai $ 2,069,564 56 2008
Atypical Games $ 2,011,279 34 1999
Fun Labs Romania $ 1,778,451 3 2013
Quantic Lab $ 884,795 22 2009
Killhouse Games $ 800,668 29 2007
eRepublik $ 690,031 6 2013
Idea Studios $ 634,468 7 2013
Green Horse Games $ 343,368 16 2007
BigBlue Studios $ 318,742 8 2011
WitchHut $ 302,819 12 2014
Mind Treat Studios $ 239,059 1 2012
Transylgamia $ 95,240 0 2013
Exosyphen Studios $ 71,651 0 2011
Phenomenon Games $ 49,251 1 2011
DAAATS Engineering $ 41,413 0 2012
Angry Mob Games $ 33,972 1 2011
Those Awsome Guys $ 17,846 0 2015
Deep Byte Studios $ 17,099 2 2007
2010s: Dawn of the Indies
2011 – Atypical Games (formerly Revo
Solutions), independent, led by Andrei Lopata,
34 staff. Releases Sky Gamblers in 2012,
followed by Battle Supremacy in 2014.
2012 – MavenHut, independent, Bobby Voicu,
Cristi Badea (RockYou franchise acquisition in
2015)
2013 – Amber, independent, currently 200
staff, led by Dragos Hancu.
2015 – Carbon, first independent games
incubator/accelerator in Romania, led by
Catalin Butnariu.
Top 25 Game Developers in Romania in 2015
Source: Romanian Ministry of Finance, 2015 Annual Report

32. Key Takeaways
Local games industry is still dominated by the presence of the multi-national giants: EA –
Ubisoft – Gameloft, even as a bourgeoning indie scene is emerging.
Indie scene is threatened by another “Cambrian extinction” such as the one that occurred
at the end of the 90s, when the first wave of enthusiasts disappeared.
VC investment is absent. Angel investment possible, but rare.
Publishing and distribution is nearly absent, with one exception.
Education system not producing industry talent. Key skills missing in Romania. Multi-
nationals only partially incentivized to locate high-skills jobs in the local market: Canada
vs. Romania (AAA award winning multi-year franchises vs. some product attempts +
mostly support work).
Local economic conditions do not allow competition against the global elites – and – labor
costs are increasing, while support for game developers is largely inexistent.

33. Massive opportunity: deep reservoir of talent, cultural fit. / But the fight is unfair.
Established games industry locations (US, UK, Japan, China, France, Germany) benefit
from the presence of an entrepreneurial ecosystem.
30+ years of games uninterrupted, market-supported industry evolution.
A network of universities churning out specialized talent every year + R&D labs,
incubators, accelerators, dev community.
Vibrant private equity / capital investment + angels, mentors, peer networks,
specialized banking/legal/accounting service providers, corporate supporters.
State subsidies.

34. Future

35. STATE INCENTIVES
INCENTIVE ECONOMIC BENEFITS
Cash equivalent: supports
company consolidation, lowering
operating expenses, global
competitiveness.
Profit maximization: encourages
local revenue recognition, may
generate increased investment.
Cash funding: encourages
entrepreneurship, fundamental
research.
EXPLANATION
Receive a tax credit for the cost of
labor, most often redeemable
against cash at 85%+ of value.
Reduce tax burden by subtracting
qualified R&D expenses from tax
owed.
Non-reimbursable, direct cash
funding.
ECONOMIC FIT TO ROMANIA
Great: State does not pick
winners, encourages both small
and large company growth.
Good: requires local companies
that produce large taxable
revenues.
Poor: State picks winners.
Encourages salary inflation, may
reduce operating expenses.
Labor tax reduction. Already deployed, relatively rare
measure internationally (only 4
countries in the Deloitte study*).
Tax Credit For Development
R&D Super Deduction
R&D Cash Grants
Partial Wage Tax Exemption
Source: Deloitte, 2014 Global Survey of R&D Tax Incentives
* Russia, Hungary, Belgium, Netherlands.
Fiscal Tactics for Growth

36. 0% 20% 40% 60% 80% 100% 120%
Romania
UK
Japan
Belgium
Ireland
France
USA
Australia
Canada
Italy
Korea
Malaysia
Singapore
Source: Deloitte, 2014 Global Survey of R&D Tax Incentives
TAX CREDIT FOR GAME DEVELOPMENT COST

37. 0% 50% 100% 150% 200% 250% 300% 350%
Romania
Poland
China
Russia
Netherlands
Brazil
Czech…
Hungary
India
Malaysia
UK
Croatia
Lithuania
Singapore
Source: Deloitte, 2014 Global Survey of R&D Tax Incentives
R&D SUPER DEDUCTION

38. 0% 10% 20% 30% 40% 50% 60% 70% 80%
Romania
Israel
UK
Germany
Poland
Mexico
R&D CASH GRANTS (% OF BUDGET)
Source: Deloitte, 2014 Global Survey of R&D Tax Incentives

39. Case Study 1: Montreal, Quebec
37.5% labor cost credit for video game development
(inspiring other Canadian provinces: Ontario 40%,
British Columbia 17.5%, Nova Scotia 50%)
20% labor cost credit for film production.
Loans to cover 100% of anticipated credit,
enhancing liquidity.
$117M earmarked in Quebec budget in 2011.
10x increase in the number of people employed in
the games industry since 2002. 5,400 industry-
trained students graduate universities every year.
230 companies in 2016, fifth largest video game
center in the world.
Major studios: Ubisoft (established in 1997), EA,
Square Enix (Eidos), Warner, Activision (Beenox)
Multimedia side effect: studios specializing in
technical and post-production services.

40. Case Study 2: Singapore
Peerless incentives to jump start an economic
sector that was entirely absent 10 years ago:
100% labor costs tax credit, up to 3 years
200% R&D superdeduction.
Games, animation, online media growing at an
annual growth rate of 26%.
Companies in this field contributed $1.5B to the
economy, employed 11K staff.
Major studios: Tecmo-Koei, Electronic Arts,
Ubisof, Bandai Namco.
Universities: DigiPen, MIT Gambit
Conference: GameStart (17K attendees)
Incubator: Games Solution Center

41. Lobby for establishing a “tax credit for game development”. Organize the multi-
nationals, demand action from management.
Join RGDA, ensure government action is a platform priority. Expect results.
Support the parties willing to insert the “tax credit for games development” into their
platform, the candidates willing to make industry growth a focal point.
Get the word out. Social media, blogs, call your journalist friends to regularly report on
the state of the industry.
Collective Action