Digital Extremes

Digital Extremes Ltd. is a Canadian video game developer founded in 1993 by James Schmalz. They are best known for creating ''Warframe'', a free-to-play cooperative online action game, and co-creating Epic Games' ''Unreal'' series of games. Digital Extremes is headquartered in London, Ontario. In 2014, 61% of the company was sold to Chinese holding company Multi Dynamic, now Leyou, for $73 million. In May 2016 Leyou exercised a call option and increased their stake to 97% of Digital Extremes for a total consideration of $138.2 million US. In December 2020, Tencent bought Leyou for 1.3 billion dollars, which included the majority stake in Digital Extremes that Leyou held.

History

Founder James Schmalz created '' Epic Pinball'', published by then shareware publisher, Epic MegaGames. Bolstered from the success of ''Epic Pinball'' and the rising technology movement in the mid-'90s toward realistic 3D graphics, Schmalz founded Digital Extremes in 1993 and the company began co-development with Epic on what would become Epic's '' Unreal'' franchise.

'' Unreal'' is a first-person shooter, released in 1998, and was followed up with '' Unreal Tournament'' in 1999, which received numerous industry awards. Subsequent sequels in the '' Unreal'' franchise include '' Unreal Championship'', '' Unreal Tournament 2003'', and '' Unreal Tournament 2004''. The ''Unreal'' series has sold more than 15 million units worldwide across a multitude of game platforms including PlayStation 2, Dreamcast, Xbox, PlayStation 3, Xbox 360, Mac and PC.

According to Scott Miller, the cofounder of the video game company 3D Realms, Digital Extremes was willing to take over development of their much-delayed game '' Duke Nukem Forever'' in 2004, but the proposal was rejected by others at 3D Realms, which Miller described as a "fatal suicide shot" for the project.

After years of working in the same universe with ''Unreal'', Digital Extremes broadened its library and technology with development of its original intellectual property, '' Dark Sector''. A third-person shooter released in 2008 for PlayStation 3, Xbox 360 and PC, ''Dark Sector'' used Digital Extremes' proprietary game engine, the Evolution Engine.

Digital Extremes worked with 2K to develop the comic-book franchise video game sequel, '' The Darkness II'', which met with positive reviews. Digital Extremes developed the PlayStation 3 version of '' BioShock'', as well as developed the multiplayer component of the sequel, '' BioShock 2'', while simultaneously developing the multiplayer portion of THQ's first-person shooter '' Homefront''.

Digital Extremes developed the game for the 2013 ''Star Trek Into Darkness'' film, working with Bandai Namco and Paramount to develop ''Star Trek'', which was poorly received.

In October 2014, Sumpo Food Holdings Ltd. acquired a majority share of Digital Extremes, with Perfect World Co. acquiring minority shares. Sumpo was rebranded as Leyou in 2015, and by June 2016, had purchased the remaining shares in Digital Extremes.

In 2016, it was revealed that Digital Extremes' game ''Warframe'' had been hacked, exposing the email addresses of more than 700,000 players.

Digital Extremes opened a development studio in Toronto, Canada, and began operations in January 2018.

In December 2020, Leyou was acquired by Tencent, which included Digital Extremes. The developer stated that this would not change how they operate as they remained independent of Tencent, though through Tencent they would be able to provide better support for the Chinese version of the ''Warframe'' client.

In October 2023, James Schmalz stepped down as CEO, with former ''Warframe'' director Steve Sinclair promoted to CEO. Community manager Rebecca Ford became the game's new director. In the following month, Digital Extremes reportedly laid off about 30 employees, mostly from their external projects division. While the layoffs were confirmed, the company would not state how many people were affected. They also terminated their partnership with Airship Syndicate, returning '' Wayfinder'' to their control.

Projects

Digital Extremes started development of ''Warframe'', a free-to-play title, in 2000. Digital Extremes launched ''Warframe'' on PC in March 2013, PlayStation 4 in November, and on Xbox One in September 2014. The company released ''Warframe'' on Nintendo Switch in November 2018. Digital Extremes continues to refresh this games-as-a-service title on a regular basis with updates including "Plains of Eidolon" (October 2017), "The Sacrifice" (June 2018), "Fortuna" (November 2018), the Nightwave series (February 2019), "The Jovian Concord" (May 2019), "Empyrean" (Christmas 2019), "Heart of Deimos" (August 2020), "The New War" (December 2021), "Angels of the Zariman" (April 2022), "The Duviri Paradox" (April 2023), and "Warframe 1999" (December 2024).

Digital Extremes worked with developer n-Space to develop the fantasy role-playing video game, '' Sword Coast Legends'', set within the ''Dungeons & Dragons'' franchise.

Digital Extremes worked with Madison, Wisconsin-based developer Human Head Studios to publish ''Survived By'', a free-to-play bullet-hell MMO with crafting and role-playing elements. ''Survived By'' was shut down as of April 2019.

During TennoCon 2022, Digital Extremes announced ''Soulframe'', an upcoming fantasy MMORPG. It also said that it would be publishing a massively multiplayer online game from Airship Syndicate, ''Wayfinder'', but after ''Wayfinder'' release in August 2023, Digital Extremes cut their external games division, leaving ''Wayfinder'' under Airship Syndicate's control.

Technology

Evolution is Digital Extremes' proprietary game engine. The engine made its debut with '' Dark Sector'' and was again utilized in '' The Darkness II''. 2013's ''Star Trek'' featured use of the Evolution engine. It is currently utilised in Warframe and the upcoming ''Soulframe''.

Awards and recognition

Since the launch of ''Warframe,'' its expansion and popularity has grown, resulting in multiple awards. In late 2017, ''Warframe'' won the Steam Labor of Love award, an award nominated by Steam's internal team, but voted on by players. ''Warframe'' was nominated in The 2017 and 2018 Game Awards as one of the Best Ongoing Games, losing to ''Overwatch'' and ''Fortnite'', respectively.

In early 2018, ''Warframe'' won the People's Voice Webby Award for Best Action Game, and ProMax's Best Marketing Campaign of the Year Award. In March 2018, Noclip published the video documentary on the making of ''Warframe''. The two-part feature tells the story of how ''Warframe'' succeeded as an independently developed and published game that changed the course of Digital Extremes.

Digital Extremes' employment environment has been recognized as one of Canada's Top Employers for 2010, 2011, 2012 and through to 2018. Additionally, the company has been recognized as one of Canada's top employers for Young People. In 2010 and 2011, the Financial Post named Digital Extremes one of the 10 best companies to work for in Canada.

On the provincial level, Digital Extremes received the Ontario Small Business Award in 2010. Digital Extremes was also presented with the Large Business of the Year award in 2011 from the London Chamber of Commerce. Digital Extremes was also awarded the Excellence in Human Resources award from The London Chamber of Commerce in early 2012.

Games developed

Further reading

*
*
*
*
*
*
*
*
*
*
*

References

External links

*
* https://www.scmp.com/tech/policy/article/3145836/why-tencent-spent-us13-billion-buy-video-gaming-firm-leyou-left-it

{{Authority control

Canadian companies established in 1993
Video game companies established in 1993
1993 establishments in Ontario
Video game companies of Canada
Video game development companies
Companies based in London, Ontario
2016 mergers and acquisitions
Canadian subsidiaries of foreign companies
Tencent Games