Upload
skalaf21
View
42.847
Download
0
Embed Size (px)
DESCRIPTION
assessment
Citation preview
Report
Sources and Uses of Funds
Bond Summary Statistics
Bond Pricing
Bond Debt Service
Project Fund
Net Debt Service
Debt Service Reserve Fund
Capitalized Interest Fund
Form 8038 Statistics
Proof of Arbitrage Yield
Underwriter's Discount
Ocr 26. 2010 12:35 pm Prepared by DBC Finance
CONFIDENTIAL
TABLE OF CONTENTS
Rhode Island Economic Development Corporation Job Creation Guaranty Program
Taxable Revenue Bonds (3B Studios, LLC Project), Series 2010
Page
2
3
4
6
7
8
9
10
11
12
(1:, ... \rhode is/and\ri economic development corp\dea/ files\38 studios\quant\riedc:RIEDC-2010)
BCI_00008909
SOURCES AND USES OF FUNDS
Rhode Island Economic Development Corporation Job Creation Guaranty Program
Taxable Revenue Bonds (38 Studios, LLC Project), Series 2010
Sources:
Dated Date Delivery Date
Bond Proceeds: Par Amount
Uses:
Project Fund Deposits: ProJect Fund
Other Fund Deposits: Debt Service Reserve Fund Capitalized Interest Fund
Delivery Date Expenses: Cost of Issuance Underwriter's Discount Bond Insurance
11/02/2010 11 !0212010
75,000,000.00
75,000,000.00
49,799,010.42
12,749,91250 10,604,076.63 23,353,989.13
650,000.00 634,065.00 562,935.45
1,847,000.45
75,000,000.00
Oct 26, 2010 12:35 pm Preoared by DBC Finance (! , .. .'.rhode island\ri econom1c development corp',deal files\38 studfos\quent\riedc:RfEDC-2010) Pege 1
CONFIDENTIAL BC1_00008910
BOND SUMMARY STATISTICS
Rhode Island Economic Development Corporation Job Creation Guaranty Program
Taxable Revenue Bonds (38 Studios, LLC Project), Series 2010
Bond Component
2015 Term Bond 2016 Serial Bond 2020 Term Bond
Par Value
Dated Date Delivery Date First Coupon Last Maturity
Arbitrage Yield True Interest Cost (TIC) Net Interest Cost (NIC) Ail-In TIC Average Coupon
Average Life (years} Duration of Issue (years)
Par Amount Bond Proceeds Total Interest Net Interest Bond Years from Dated Date Bond Years from Delivery Date T alai Debt Service Maximum Annual Debt Service Average Annuai Debt Service
Underwriter's Fees (per $1000) Average Takedown Management Fee Other Fee
Total Underwriter's Discount
Bid Price
Par Value
23.685,000.00 8,860,000.00
42,455,000.00
75,000,000.00
Price
100.000 100.000 100.000
TIC
75,000,000.00 + Accrued Interest + Premium (Discount) -Underwriter's Discount (634,065.00) -Cost of Issuance Expense -Other Amounts (562,935.45)
Target Value 73,802,999.55
Target Date 11/02/2010 Yield 7.585763%
11/0212010 11/02/2010 05/01/2011 11/01/2020
7.421605% 7.585763% 7.444181% 7.756023% 7.320687%
6.846 5.360
75,000,000.00 75,000,000.00 37,587,089.13 38,221 '154.13
513,436,666.67 513,436,666.67 112,587,089.13
12,749,912.50 11,261,837.20
6.250000 1.000000 1.204200
8.454200
99.154580
Average Average Coupon Life
6.000% 4.036 6.750% 5.997 7.750% B-590
6.846
Ali-In TIC
75,000.000.00
(634,065.00) (650,000.00) (562,935.45)
73,152,999.55
11!02/201 0 7.756023%
PVof1bp change
9,947.70 4,252 80
29,293.95
43,494.45
Arbitrage Yield
75,000,000.00
(562,935.45)
74,437,064.55
11/02/2010 7.421605%
Oct 26, 2010 12:35 pm Prepared by DBC Finance (J:I ... Ifhooe islandlri economic development corp ideal fi/es\38 studios\quant\riedc:RIEDC-2010) Page 2
CONFIDENTIAL BCI_00008911
BONO PRICING
Rhode Island Economic Development Corporation Job Creation Guaranty Program
Taxable Revenue Bonds (38 Studios, LLC Project), Series 2010
Bond Component
2015 Term Bond:
2016 Serial Bond:
2020 Term Bond
Maturity Date
11/01/2013 11/0112014 1110112015
11101/2016
11101!2017 11/01/2018 11/01/2019 11/01/2020
Dated Date Delivery Date First Coupon
Par Amount Original Issue Discount
Production Underwriter's Discount
Purchase Price Accrued Interest
Net Proceeds
Amount Rate Yield
7,440,000 6.000% 6.000% 7,885,000 6.000% 6.000% 8,360,000 6.000% 6.000%
23,685,000
8,860,000 6.750% 6.750%
9,455,000 7.750% 7.750% 10,190,000 7.750% 7.750% 10,980,000 7.750% 7.750% 11,830,000 7.750% 7.750% 42,455,000
75,000,000
11102/2010 11/02/2010 05/01/2011
75,000.000.00
75,000,000.00 100.000000% (634,065.00) (0.845420)
74,365,935.00 99.154580%
74,365,935.00
Price
100.000 100.000 100.000
100.000
100.000 100.000 100.000 100.000
Oct 26, 2010 12:35 pm Prepared by DBC Finance (/: .. '.rhode rsland'.ri economrc development corp ideal files\38 studios\quant'.riedc:RIEDC-2010) Page 3
CONFIDENTIAL BCI_00008912
BOND DEBT SERVICE
Rhode Island Economic Development Corporation Job Creation Guaranty Program
Taxable Revenue Bonds (38 Studios, LLC Project), Series 2010
Dated Date 11/02/2010 Delivery Date 11/02/2010
Period Annual Ending Principal Coupon Interest Debt Service Debt Service
05/01/2011 2.639.957.88 2,639,957.88 11/01/2011 2,654,706.25 2,654,706.25 5,294,664.13 0510112012 2,654.706.25 2,654,706.25 11/0112012 2,654,706.25 2,654,706.25 5,309,412.50 0510112013 2,654,706.25 2,654,706.25 1110112013 7,440,000 6.000% 2,654,706.25 10,094,706.25 12,749,412.50 05/01/2014 2,431,506.25 2,431,506.25 11/01/2014 7,885,000 6.000% 2.431,506.25 10,316,506.25 12,748,012.50 05/01/2015 2,194,956.25 2,194,956.25 11/0112015 8,360,000 6.000% 2,194,956.25 10,554 '956.25 12,749,912.50 05/01/2016 1,944,156.25 1,944.156.25 11/01/2016 8,860,000 6.750/o 1,944,156.25 10,804,156.25 12,748,312.50 05/0112017 1,645,131.25 1,645,131.25 11/01/2017 9,455,000 7.750% 1,645,131.25 11,100,131.25 12,745,262.50 05/01/2018 1.278,750.00 1 ,278, 750.00 11!01/2018 10,190,000 7.750% 1,278,750.00 11,468,750.00 12,747,500.00 05/01/2019 883,887.50 883,887.50 11/01/2019 10,980,000 7.750% 883,887.50 11,863,887.50 12,747,775.00 05/01/2020 458,412.50 458,412.50 11/01/2020 11,830,000 7.750% 458,412.50 12,288,412.50 12,746,825.00
75.000,000 37,587,089.13 112,587,089.13 112.587,089.13
Ocr 26_. 2010 12:35 pm Prepared by DBC Finance (/:'1 ... 1f1lode islandvi economic development corp\dea/ files\38 srud/os\quant\riedc:RfEDC-2010} Page 4
CONFIDENTIAL BCI_00008913
Period Ending
1110112011 11/0112012 11/0112013 11101/2014 11/01/2015 11/0112016 11/0112017 11101/2018 11/01/2019 11/0112020
Oct 26, 2010 12:35 pm Pre{Jared by OBC Finance
CONFIDENTIAL
BOND DEBT SERVICE
Rhode Island Economic Development Corporation Job Creation Guaranty Program
Taxable Revenue Bonds (38 Studios, LLC Project), Series 2010
Dated Date 11/02/2010 Delivery Date 1110212010
Principal Coupon Interest Debt Service
5,294,664.13 5,294,664.13 5,309,412.50 5.309,412.50
7,440,000 6.000% 5,309,412.50 12,749,412.50 7,885,000 6.000% 4,863,012.50 12,748,012.50 8,360,000 6.000% 4,389,912.50 12.7 49,912.50 8,860,000 6.750% 3,888,312.50 12,748,312.50 9,455,000 7.750'% 3,290,262.50 12,745,262.50
10,190,000 7.750% 2,557,500.00 12.747,500.00 10,980,000 7.750% 1,767,775.00 12,747,775.00 11,830,000 7.750% 916,825.00 12,7 46,825.00
75,000,000 37,587,089.13 112,587,089.13
(/:I ... \rhode islandvi economic development corp\dea/ fi/es\38 studiosi.quant\n"edc:R/EDC-2010) Page 5
BC1_00008914
PROJECT FUND
Rhode Island Economic Development Corporation Job Creation Guaranty Program
Taxable Revenue Bonds (38 Studios, LLC Project), Series 2010
Incoming Interest Cashflow Debt Service Capita1il:od Scheduled
Date Deposit @0.25o/, Principal Principal Reserve Fund lntere!ll Fund Draws Balance 11102/2010 49,7&9.01 a 42 13,000,000 00 13,000,000.00 42 1113012010 7,155.36 (7.15536i 36,306,165.78 12131/2010 7,667.95 9.392,332.05 G.400.COO.OO 27,413,633.73 01131/2011 5,711.22 (5,711.22) 27_419,544.95 (212812011 5,712.41 (5.712.41 J 27,425.257.36 0313'12011 5,713 60 (5,713.60) 27.430,970.96 0411512011 17 ,200,()00.00 17.200,000.00 10.230.970.96 0413012011 3,923.12 (3.923.12) 10,234.894.08 0511l112011 (44.879.16) 31.697 70 13,181.46 10.279.773 24 05!31!2011 2,132.27 {2, 132.271 10.281.905.51 06/3012011 2.132 71 (2.132.71) 10.284 038.22 0713112011 2.133.16 10.286,171.38 08131/2011 2.1::!3.60 (2.133.60) 10,288,304.98 09.'30!2011 2.134.05 (2.134.051 10,290,439.03 101C71201 1 4.155,120.84 44.879.16 4,200.000.00 6.090.439.03 1013112011 1,470.83 {1.470 83) 6,091,909 86 11101!2011 (41 ,829.93) 31,874.78 9,955.15 6.133,739.79 1113012011 1.269.15 4.056.900.92 41,82g_gJ 4.100.000.00 2.0:>5.008.94 1213112011 423 96 (423.96) 2.035,432.90 01131.'2012 424.05 2.035.432.90 2,035,856.95
49,799,010.42 50.137.44 49,799,010 42 0.00 63.572.48 23.136.61 4S.935,856.95
Av!!rage L1fe :years) o 4034 Yield To ReC,p! Date: 0 2494510% Arbitrage Yield 7 4216048% Value ol NE>gaUva Art11traga 1.377.11i:i.50
Oct 26, 2010 12:35 pm Prepared by DBC Finance (1: 1 ... \Jtiode island'J"i economic development corp\deal files\38 studios\quant\riedc:RJEOC-2010) Page 6
CONFIDENTIAL BCI_00008915
NET DEBT SERVICE
Rhode Island Economic Development Corporation Job Creation Guaranty Program
Taxable Revenue Bonds (38 Studios, LLC Project), Series 2010
Total General Debt ServicE! Capitalizad "" Annual Date Principal Interest Debt Service Fund Reserva Fund Interest Fund Debt Service Net DIS 05i01J2011 2.639.957.88 2.039.957 as 2,639,957 88 1li0112011 2,654.706 25 2,654.706 25 2.654,706 25 05!0U2012 2.654,706.25 2,654,706 25 [38.511 55) 31 874.78 2,661,343 02 1 t.'01J2012 2,654.706.25 2.654.706 25 (35,193.16\ 31.874.78 2,650,024 63 05!01i2013 2,654 706.25 2.654.706 25 73.704.71 31 874.78 2,549.126.76 1'.'012013 7.440,000 2 654 706 25 10,094,706 25 Jl 874.78 10,062,1331.47 12,611 ,'158.23 05!01/2014 :2.431.506.25 2,431,506 25 31 874.78 2,399,1331.47 jl/0112014 ?.385.000 2.43-1,506 25 10,316,5G6.25 31 874.78 10,284.631.47 12,684,262.94 05101i2015 2,194,956 25 2,194.956 25 3187473 2,163,081.47 1/0112015 8,"'60.000 2 1!
Date
11/01/2011 11/01/2012 11/01/2013 11/01/2014 11/01/2015 11/01/2016 11/01/2017 11/01/2018 11/01/2019 11/01/2020
DEBT SERVICE RESERVE FUND
Rhode Island Economic Development Corporation Job Creation Guaranty Program
Taxable Revenue Bonds (38 Studios, LLC Project), Series 2010
Interest Deposit @0.5% Principal Project Fund Debt Service
12,749,912.50 63,572.48 (63,572.48) 63,749.56 (63,749.56) 63,749.56 (53,749.56) 63,749.56 (63,749.56) 63,749.56 (63,749.56) 63,749.56 (63.749.56) 63,749.56 (63,749.56) 63,749.56 (63,749.56) 63,749.56 (63,749.56) 63,749.56 12,749,912.50 (12,813,662.06)
12,749,912.50 637,318.52 12,749,912.50 (63,572.48) (13,323,658.54)
Average Life (years): 9.9972 Yield To Receipt Date: 0.5000002% Arbitrage Yield 7.4216048% Value of Negative Arbitrage: 6,152,095.47
Balance
12,749,912.50 12,749,912.50 12,749,912.50 12,749,912.50 12,749,912.50 12,749,912.50 12,749,912.50 12,749,912.50 12,749,912.50
Oct 26, 2010 12:35 pm Preoared by DBC Finance (I:L. '.rhode island'Ji economic development corp\deal files\38 studios\quant\riedc."RIEDC-2010) PBge 8
CONFIDENTIAL BCI_00008917
Date
05!0112011 11101120!1 05101/2012 1110112012
Deposit
10,604,076.63
10.604.076.63
CAPITALIZED INTEREST FUND
Rhode Island Economic Development Corporation Job Creation Guaranty Program
Taxable Revenue Bonds (38 Studios, LLC Project), Series 2010
Interest @0.25% Principal Project Fund Debt Service
13,181.46 2,639.957.88 {13,1B1.46) 9,955.15 2,654.706.25 [9,955.15) 6,636.77 2,654,706.25 (6,636.77) 3,31838 2,654,706 25 (3,318.38)
33,091.76 10,604,076 63 (23,136.61) (9,955 15)
Average Life (years) 1.2483 Yield To Receipt Date 0.2500004% Arbitrage Yield: 7.4216046% Value of Negative Arbitrage: 883,200.45
Scheduled Draws
2,639,957 88 2,654,706 25 2,654.706.25 2,654.706.25
10,604.076.63
Balance
10,604,076.63 7,964,118.75 5,309.412.50 2,654.706.25
Oct 26, 2010 12:35 pm Prepared by OBC Finan';e (l:i ... lrhode islandl!"i economic development corp ideal files\38 srudios\quant\riedc:RIEDC2010} Page 9
CONFIDENTIAL BCI_00008918
Bond Component Date
2015 Term Bond: 11/01/2013 11/01/2014 11/01/2015
2016 Serial Bond: 11/01/2016
2020 Term Bond 11101/2017 11/01/2018 11/01/2019 11/01/2020
Maturity Date
Final Maturity 11101/2020 Entire Issue
Proceeds used for accrued interest
FORM 8038 STATISTICS
Rhode Island Economic Development Corporation Job Creation Guaranty Program
Taxable Revenue Bonds (38 Studios, LLC Project), Series 2010
Dated Date Delivery Date
Principal
7.440,000.00 7.885,000.00 8,360,000.00
8.860,000.00
9,455,000.00 10,190,000.00 10.980,000.00 11.830.000 00
75,000,000.00
Interest Rate
11/02/2010 11/02/2010
Coupon Price
6.000% 100.000 6.000% 100.000 6.000% 100.000
6.750% 100.000
7.750% 100.000 7.750% 100.000 7.750% 100.000 7.750% 100.000
Stated Issue Redemption Price at Maturity
7.750% 11,830,000.00 11 ,830,000.00 75,000,000.00 75,000,000.00
Issue Price
7,440,000.00 7,885,000.00 8,360,000.00
8,860,000.00
9,455,000.00 10,190,000.00 10,980,000.00 11,830,000.00
75,000,000.00
Weighted Average Maturity
6.8458
Proceeds used for bond issuance costs (including undeTWriters' discount) Proceeds used for credit enhancement
Redemption at Maturity
7,440,000.00 7.885,000.00 8,360,000.00
8,860,000.00
9,455,000.00 10,190,000.00 10,980,000.00 11,830,000.00
75,000,000.00
Yield
7.4216%
0.00 1 ,284,065.00
562.935.45 Proceeds allocated to reasonably required reserve or replacement fund 12,749,912.50
Oct 26, 2010 12:35 pm Prepared by DBC Finance (!.\. . .'.rhode is/and\ri economic development corp \deal fifes\38 studios\quant\riedc:RIEOC-2010) Page 10
CONFIDENTIAL BC1_00008919
PROOF OF ARBITRAGE YIELD
Rhode Island Economic Development Corporation Job Creation Guaranty Program
Taxable Revenue Bonds (38 Studios, LLC Project), Series 2010
Present Value to 11/02/2010
Date Debt Service @ 7.4216048%
05/0112011 2,639,957.88 2.546.014.74 11/0112011 2,654,706.25 2,468,632.23 05/01/2012 2,654,706.25 2,380,303.86 11/0112012 2,654.706.25 2,295,135.90 0510112013 2,654,706.25 2,213,015.27 1110112013 10,094,706.25 8,114,049.08 0510112014 2,431,506.25 1,884,496.52 11/01/2014 10,316,506.25 7,709,542.40 05101/2015 2,194,956.25 1,581,604.27 11101/2015 10,554,956.25 7,333,383.62 05101/2016 1,944,156.25 1 ,302,432.24 11101/2016 10,804,156.25 6,978,962.01 05101/2017 1,645,131.25 1 ,024,652.34 1110112017 11,100,131.25 6,666,227.07 0510112018 1,278,750.00 740,480.53 11101/2018 11,468,750.00 6.403,539.40 05/01/2019 883,887.50 475,857.59 11/01/2019 11,863,887.50 6,158,614.66 05/01/2020 458,412.50 229,450.21 11/01/2020 12,288,412.5{) 5,930,670.61
112,587,089.13 74,437,064.55
Proceeds Summarv
Delivery date Par Value Arbitrage expenses
Target for yie!d catculatiOn
11/02/2010 75.000,000.00
{562,935.45)
74,437,064.55
Oct 20, 2010 12:35 pm Prepared by OBC Finance (l:t .. \rhode isiand\ri economic development corp'.dea/ (i!es\38 studios\quant\riedcRIEDC-2010) Page 11
CONFIDENTIAL BCI_00008920
,---------------------------------------------------------
UNDERWRITER'S DISCOUNT
Rhode Island Economic Development Corporation Job Creation Guaranty Program
Taxable Revenue Bonds (38 Studios, LLC Project), Series 2010
Underwriter's Discount $11000 Amount
Average Takedown 6.25000 468,750.00 Management Fee 1.00000 75,000.00 Placement Agent's Counsel 1.00000 75,000.00 NetRoadshow 0.10000 7.500.00 CUSIP 0.00260 195 00 SIFMA 0.02000 1,500.00 DTC 0.00267 20000 lpreo 0.04560 3,420.00 Miscellaneous Expenses 0.03333 2,500.00
8.45420 634,065.00
Oct 26, 2010 12:35 pm Prepared by DBC (l:l .. '.rhode island\ri economic development corp\deal files\38 studios\quanMedc:RIEDC-201 0) Page 12
CONFIDENTIAL BCI_00008921
Project Copernicus Assessment Summary and Recommendations
Assessment team
The initial assessment team was comprised of:
0 Charles Nugent, Project Manager, IBM 0 George Dolbier, Interactive Media Specialist, IBM 0 Bill Le Voir-Barry, Agile Specialist, IBM 0 Smith Young, Architecture Specialist, IBM
0 Scott Abate, Project Manager, 38 Studios
The team was onsite from January 24th through February 18th, during which time 15 interviews were conducted with select individuals from the studio.
,-------------------------- --- ------
Assessment summary: areas of focus
The initial assessment focused on the following areas (as defined by the statement of work):
v' Program Management v' Change Management v' Risk Management v' Issue Management v' Financial Management v' Requirements v' Architecture v' Lifecycle & Releases
Assessment summary: the strengths ./ Excellent morale, one of the best we have seen
./ High quality staff, both in depth and experience
./ Highly effective evaluation process for either building, modifying or buying game technology
./ Highly collaborative and productive work environment
./ Exceptional, top-level creative talent
./ Using a highly recognized development process in the Serum
./ Highly progressive work environment with respect to: communications, feedback and ethical business guidance
./ No pressure for premature release date from an external publisher
./ Integration of tools into a unified development environment exceeds the industry norms
./ Innovative and industry leading audio design will put Copernicus ahead of the MMO pack
./ Successfully reduced the ego-centric nature prevalent in the ("check your ego at the door" is working better than other gaming organizations)
./ Continuous integration process is mature and effective, allowing productivity levels above the industry norms
./ Based on the state of the MMO industry, the software stack is best in breed
Assessment summary: the opportunities 0 Almost no one developing Copernicus has seen or read the pitch book (a unified, high-level project vision) leading to conflict and prioritization issues
0 Some of the staff and leadership behavior was observed to be contrary to stated goals- i.e. believing a goal to be unreasonable, "believing" a goal should change. It was observed that in lieu of communicating feedback, decisions being made were contrary to stated goals
0 No Economics team, and NOC, Operations, Software as a Service, security & support teams still in their infancy. An MMO requires equal attention to all 3 domains to be successful- Financial, Game & Support
0 Change Management: Current check-in method utilizing just a main code branch, endangers entire project
LJ Game Decisions being made by very competent professionals with deep industry experience, but the decisions are being made in a vacuum without any input from MMO Marketing expert sources or checks against current state of the industry, or business needs
0 In-ability for anyone to work remotely impedes ability to utilize high valued I short supply talent, in addition to offsite production collaboration
0 Absence of a clear critical path document or exposure to the pitch book, is impacting the crews ability to produce.
LJ Centralized Documentation becoming an impediment to production. Information not available in a timely fashion; Specifications, designs not easily discoverable and usable (Feedback from Interviews Only)
U Only a "single" Product Owner which potentially provides an impediment I bottleneck in communication and ownership of Copernicus Vision. Risk- If Product Owner leaves the project for any reason, it will dramatically impact the delivery I vision of Copernicus
0 Opaque financial communications may be contributing to misinformed and potentially detrimental decision making
---------. ----
Assessment summary: the opportunities (continued) Q The move from Massachusetts to Rhode Island is an event that 38 Studios, believes, incorrectly, will not impact project timeline
Q Software Security is not formally or systematically addressed, Understanding of service, and software security is not well demonstrated. 38 studios does not have an individual or team with primary responsibilities for security.
Q Due to state of "infancy I immaturity" of collecting development metrics, impacts their understanding of development costs and development ROI
Q Goals (38 Studios Version of Agile User Stories) are still too large- i.e .. , at "Epic" Level in many cases. Not being decomposed enough causes ambiguity and improper rating of Biz Value. Current usage of Biz Value is providing false burn rate, as goals are not decomposed enough- thus, providing false ROI
Q Major functional requirements are being deferred to non-existent organizations within 38 Studios
Q Many 38 Studios Crews are operating independently to produce their output, and at this time in the project, teams of crews should be producing I collaborating with each other on large aspects of the game. Example: Zone Art & Zone Music should be integrated at monthly review instead of independent demonstrations
Q "I have an idea what needs to get done (To improve technology) ... but it is still in my head." (Product Owner)
Q Using em ails for Serum Master Communications creates an overload and in-effective method for coordination.
Q The current serum team management system will increasingly impede development as the company grows
Recommendations: Program Management, Change Management
Assessment Establish Sub-Product Owners to Support Product Owner
Recommendation By Utilizing More Product Owners, you remove barrier of communication vision. as well as remove risk of loosing only source of game completion "knowledge" (Risk)
Assessment No Assessment Vision into how Deliverables, Artifacts, Game Designs, etc .. are managed in Wiki. No Assessment Vision into how documents I artifacts flow through SCRUM crews and between SCRUM teams.
Recommendation Assessment results have been based on "hearsay," and interviews indicate that Wiki is not well maintained I and I or hard to use.
Recommendation As Release Management (and Operations) becomes established, need to begin introducing procedural overlay with SCRUM to define waterfall type milestones, for example, requirements review, design review, system and acceptance testing.
Assessment Not having a clear vision of the end game is a barrier to SCRUM. Planning and estimating dates becomes conservative
Recommendation Create a backlog item to "Sanitize" and update the pitch book. Make the result available to all staff. This document typically serves the purpose of 9iving the entire development team a sin9ular. unified, and clear vision of what the proJects goals are
Assessment Many 38 Studios Crews are operating independently to produce their output, and at this time in the project, teams of crews should be producing I collaborating with each other on large aspects of the game. Example: Zone Art & Zone Music should be integrated at monthly review instead of independent demonstrations
Recommendation Utilize an Agile Meeting Method - 1 hour Standup between Product Owner, Sub-Product Owners. Creative Directors and Serum Masters to bring development completion collaboration and impediments to forefront among all crews I leadership
------ -- ---=='=-:= '" Recommendations: Risk Management Management,
Issues Management Assessment Assessment
There are twice as many artists I designers as engineering staff. This creates a bottleneck between Designer I Artist - and Engineering Staff. High probability this will impact deliverable timelines
Recommendation Insure Hiring of Engineering Staff is a Priority wlin 38 Studios Leadership
Assessment Increase Number of Risk Assessment I Deferrals During Sprints
Recommendation During Each Sprint, Utilize Two Sprint Assessment I Deferral Checkpoints
Assessment Marketing Team not in P.lace to support 38 Studios Copernicus Project. This is a Risk as Development of Game oeing performed in a "Vacuum"- i.e .. , Limited Access to the Gaming Business Market Research and Interpretation
Recommendation Consider immediately working with external research firms that focus only on the business of games - while aggressively liiring Marketing Staff
As the numbers of crews grow in size, how will communications and issues be raised, addressed, and handled?
Recommendation Institute a Visionary, Product Owner & Serum Leader 1 hour, Weekly Standup Meeting to Compile Cross Crew Discovery I Needs; Cross Crew Impediments, and also engage Operations I Release Management when Appropriate.
Assessment Sprints are Long - Currently 4 Weeks
Recommendation Decrease Length of Sprints to Two Weeks. Additionally, increase the number of Assessment Opportunities during the Sprints.
Recommendations: Financial Management, Requirements
Assessment At the time this report was finalized, financial information had not yet been compiled
Assessment At the time this report was finalized, requirements information had not yet been reviewed
Recommendation Schedule an interview with the CFO and obtain access to the wiki during the follow-up assessment
Assessment It was observed and recorded in interviews that 38 Studios waited too long to begin the process of implementing Voiceover.
Recommendation Sub-Contract Outside Voice Experts I MMO Voice Experts immediately to provide technical direction to close this gap
Assessment SCRUM backlog is not organized; can't see relationships ana notes; makes planning difficult
Recommendation Introduce a Product that can keep tasks, and coordinate items between products, tasks, goals, etc
Assessment Huge parts of game not defined.
Recommendation Using the Plot as the baseline, determine which parts of Chapters 1-4 are still undefined.
Recommendations: Architecture
Assessment Assessment Only beginning to get .event functionality ... a game cfiapter 1s a senes of end game events
Recommendation Handling Events is a major game function, establisfl a repeatable pattern for handling events in softWare and, if available, procure software early in the development cycle that will facilitate
Assessment Problems with customer service- it is in it's infancy
Recommendation Solve during early design of the game if to develop in-house solution or to identify hooks if outsourced. Needs to be coordinated with procurement and integration of Game Master software
Assessment MySQL database rollback with cache creates unacceptable user problems
Recommendation Oracle provides superior rollback (transactions to a checkpoint) capability where solid state technology can be added for performance
Platform group needs to implement Business Intelligence, Bl, system for online monitoring
Recommendation Platform to host the data warehouse supporting Bl would require 1) a new TCP interface for "online" monitoring of game ana/or 2) an Enterprise Service Bus (ESB) proauct to extend Bl serv1ces
Assessment Big World mods in support of the Helios connector is the main 38 Studios devefopment. Many dependencies on connector
Recommendation Develop schedule (waterfall if necessary) for a GA release; stable and having passed essential systems integrations tests. Continuation of BigWorld mods indicate that too many requirements are allocated to connector (instead of platform and/or BigWorld server).
Assessment Analytics system not yet specified.
Recommendation As much as 80% of Bl can be collected by web analvtics requiring remaining 20% to be collected by BigWorld server. 1) Consider and evaluate "web analytics" software (IBM Cormetrics and Adobe market leaders) where code would be inserted into Unreal client. Early imr>lementation is required as very difficult to retrofit into _game. 2) BigWorld Server to collect Bl statistics moved to Bl data warenouse hosted and maintained by Platform group.
.--------- --------- -- -
Recommendations: Architecture (continued)
Assessment Game Master, GM, tools and implementation in support of customer service
Recommendation Early implementation is required as may be very difficult to retrofit into game. Need to begin defining GM role and other interfaces, such as access to Bl.
Assessment Database performance issue: review of the Bigl/l!orld MySQL table structure and performance profiling finding queries with large SQL joins
Recommendation 1) In addition to BigWorld, consider and evaluate replacing MySQL with a high performance database for both Helios and future data warehouse, 2) Need Entity Relationship Diagram, ERD, (from vendor) to fully understand logical model.
Assessment Have not found many architecture diagrams that document interfaces between systems
Recommendation Acquire diagrams from different groups to include 1) game client-server, platform, release management, operations, and user support, 2) 38 Studios roles consisting of Narrators, Designers, Artists, Engineers, QA, and in the future Bl Analyst, Operators, Game Master, and User Support
Recommendations: Lifecycle & Releases Assessment
PerForce supports branching, currently not utilized Recommendation
Observation that "running the game and testing requires collaboration and merging of 1) data, 2)code, and 3) art usually from different machines." Recommend setting up a separate branch(s) in PerForce to support a specific environment(s) for specific crews to expedite testing the game where by the data, code, and art can quickly and iteratively be tested on the same machine as a branch under development. Later, the respective branch and integrated can be migrated into the baseline for smoke testing.
Assessment Need 20Kbs bandwidth between servers to support the
required engineering data to support cross realm Recommendation
Make between realms a systems stress test requirement
Assessment Scripted Python sessions for scalability of testing
Recommendation Consider replacing Python scripts with automated testing
tool, especiallY for stress testing involving thousands of concurrent players
Assessment With regard to release management and QA staging, need to figure out how different when live
Recommendation In addition to current QA-Staging-Live environments may need to add environments for Live (future), Live (current), and Live (grandfather) where Live (current) becomes a fall back alternative after going to Live (future). Agile may promote to Live future more frequently than expected putting requirements for additional QA testing.
Assessment Need better QA coverage for builds and automated testing, i.e., need tools beyond smoke testing
Recommendation Growth of 38 Studios will require a serious consideration of commercial tools to include required skills and the respective impact on hiring
Assessment Scripted Python sessions for scalability of testing
Recommendation Consider replacing Python scripts with automated testing tool, especially for stress testing involving thousands of concurrent players
---------------
.lj.;a = - -"S: ----- .. --------!o'Ll"" Recommendations: Lifecycle & Releases (continued)
Establish a visionary, and have several product owners reporting to the visionary:
I
SCRUM
Product Owner1
' Ll SCRUM
leader leader
Visionary
Product Owner2
I I SCRUM SCRUM leader leader
---"--------
SCRUM
Product Owner3
SCRUM '"'" J -'"'" 0oductsV
Recommendations: Lifecycle & Releases (continued) Allow different crews to collaborate on user stories:
Many-to-many relationships between crews and epic/user stories
SCRUM Leader
Current SCRUM Problem: . I . 1) Ambiguity 2) Testable g? 3) Current goals (as epics) too general Crew B 4) all goals, now synonymous with crews ownership, on the same monthly cycle _j I ___ r::-:__ __ } ___ _ __ L __ - - - - - - -.
'Epic/user story' IEpic/user story! 1Epic/user story! 'Epic/user story' I 1 I I 2 I I 1 ! I 2 I I I I I I I I I ------- -- - - ------- ----- ----- -- - ----
Recommendations: Lifecycle & Releases (continued) Implement a Agile/Serum tool:
Agile tool that greatly assists communication, enforces rules for defining Epic, User Story, Task, and Crew to include MoSCoW rules, and encompasses project management- all within a single
configuration management environment. - --Example of SCRUM epic used to derive a user story tor a creature behavior qualified with a
MoSCoW business rule that is further allocated to tasks
for type of object to chango
location
l Derive user storv with MoSCoW rule, e.g., control pace for change of location I
I Crew B Crew A
pace is for L_ - . motion to walk, not run
Recommendations: Utilize user stories:
User Story: Creature 3-D effects 1)mood 2) event transition state 3) zoom 4) day or night
Lifecycle & Releases (continued)
Tasks by User Story For example, a user story for character, environment, and technical
artists to develop player avatar.
0 Ar_ - =:t - Nee ) Creahmti
Character Artist Crew A
Environmental Artist Crews
Technical Artist Crewe
A11dio
Additional Recommendations: Grow the operations
' , ' ,<
' ', 1 ' '
' ' '
0 v Live :
Network Admin
Corp IT
PQ/desktop support Corp systems
organization
t ,, ' A , Studios GM :
' 0 CRMIGM ' :is ' um'
i i
' ' B ' '"
, - (contrao!Qr)
Stud10 networking
CEO '
' ' , Vl" Of
c
-- -------- ------------- --------------------------------
Next steps
0 IBM will schedule a formal presentation of assessment
0 38 Studios will respond with an action plan based on the recommendations
0 IBM will return to 38 Studios for follow-up assessments on a quarterly basis beginning in July of 2011