Strategy First

Strategy First Inc. was a Canadian video-game company headquartered in Montreal, Quebec. It was established in 1988 by board-game designers Don McFatridge, Steve Wall, and Dave Hill, with Richard Therrien joining the partnership shortly afterward. The founders chose the company's name to reflect an intended concentration on strategy games, an area that included both computer adaptations of strategic concepts and original turn-based or real-time strategy projects. The company initially operated primarily as a developer. Over time, however, its business model shifted toward publishing and distribution, allowing it to release games produced by internal teams and external studios. Its portfolio became associated with specialist and niche strategy properties, including the Disciples series, the Jagged Alliance series, O.R.B.: Off-World Resource Base, and the Space Empires series. These releases gave Strategy First a recognizable position within the PC strategy market, particularly among players interested in turn-based tactics, science-fiction strategy, and role-playing strategy hybrids. A notable expansion occurred in 1997, when Strategy First acquired Midnight Software. The transaction broadened the company's development and publishing assets, although the available reference material does not specify the purchase price or the complete commercial rationale. By the early 2000s, the company had expanded to more than 100 employees across three offices. That scale was not sustained. By May 2004, Strategy First had contracted to approximately 16 employees at its Montreal office while carrying more than US$5 million in debt. The liabilities reportedly included almost US$4 million owed to investors and approximately US$1.7 million owed to developers. Strategy First filed for bankruptcy on August 4, 2004. The insolvency affected business partners and developers whose royalty payments were not made, including Stardock and Paradox Interactive in connection with games published by Strategy First. Techland subsequently ended its distribution relationship with the company and prohibited Strategy First from distributing Techland products effective September 18, 2004. The company emerged from the bankruptcy proceedings after Silverstar Holdings announced its acquisition on April 22, 2005. Silverstar, a Florida-based public company focused on acquiring pay-to-play businesses, contributed US$600,000 in cash and 400,000 common shares to Strategy First's creditors and assumed US$400,000 of existing debt. Silverstar's stated plan was to operate Strategy First as a niche publisher alongside Empire Interactive, which it characterized as a broader publishing operation. In April 2005, Strategy First also acquired and absorbed the assets of Malfador Machinations, a developer based in Santa Rosa, California. Malfador's president and chief executive, Aaron Hall, joined Strategy First's management team. The later corporate history is less clearly documented in the supplied reference material. Silverstar Holdings was delisted from NASDAQ in March 2009, and Empire Interactive entered administration in May of that year. The present operating status of the Strategy First brand is not established by the available sources.

Strategy First began in Montreal in 1988, when board-game designers Don McFatridge, Steve Wall, and Dave Hill decided to establish a video-game company. Richard Therrien joined them soon afterward. Their shared interest in strategic play shaped both the company's name and its early creative direction. Strategy First initially developed strategy games, but gradually evolved into a publisher and distributor working with external studios as well as internal or affiliated development resources. The company expanded through acquisition. In 1997 it purchased Midnight Software, adding development and publishing assets to its operation. During its growth phase, Strategy First became linked with a range of strategy properties, including the Disciples and Jagged Alliance franchises, O.R.B.: Off-World Resource Base, and Space Empires. Its catalogue covered several forms of computer strategy, from turn-based and tactical games to science-fiction and role-playing-oriented designs. Growth eventually gave way to severe financial contraction. By May 2004, Strategy First had more than US$5 million in debt and had fallen from a workforce of over 100 employees distributed among three offices to about 16 employees at its principal Montreal location. The reported liabilities included nearly US$4 million owed to investors and approximately US$1.7 million owed to developers. The company entered bankruptcy on August 4, 2004. The bankruptcy had consequences for publishing partners. Developers including Stardock and Paradox Interactive did not receive royalties connected with games Strategy First had published. Techland subsequently severed its relationship with Strategy First and withdrew permission for the company to distribute Techland products, effective September 18, 2004. A change of ownership followed. On April 22, 2005, Silverstar Holdings announced that it had acquired Strategy First through the bankruptcy proceedings. Silverstar contributed US$600,000 in cash and 400,000 shares of common stock to creditors, while assuming US$400,000 of existing debt. Silverstar chief executive Clive Kabatznik described Strategy First as a niche publishing business that would operate alongside Empire Interactive, a larger publishing acquisition in Silverstar's portfolio. Also in April 2005, Strategy First acquired and absorbed the assets of Malfador Machinations. Aaron Hall, Malfador's president and chief executive, joined Strategy First's management team. The available material does not establish the brand's subsequent releases, ownership changes, or current trading status in sufficient detail. Silverstar's NASDAQ delisting in March 2009 and Empire Interactive's administration in May 2009 provide later context for the parent group's difficulties, but do not by themselves establish whether Strategy First continued operating independently.

• 2005

  Silverstar Holdings acquisition

  [1]Strategy Firsten.wikipedia.org

  Silverstar Holdings acquired Strategy First from bankruptcy proceedings and positioned it as a niche publisher.

• 2005

  Malfador Machinations assets acquired

  [1]Strategy Firsten.wikipedia.org

  Strategy First acquired and absorbed Malfador Machinations' assets, and Aaron Hall joined its management team.

• 2004

  Bankruptcy filing

  [1]Strategy Firsten.wikipedia.org

  The company filed for bankruptcy on August 4 after accumulating more than US$5 million in debt and sharply reducing its workforce.

• 1997

  Acquisition of Midnight Software

  [1]Strategy Firsten.wikipedia.org

  Strategy First acquired Midnight Software as part of its expansion of development and publishing resources.

• 1988

  Strategy First is founded in Montreal

  [1]Strategy Firsten.wikipedia.org

  Don McFatridge, Steve Wall, and Dave Hill established the company, with Richard Therrien joining as a partner soon afterward.

A specialist publisher and former developer focused on strategy-oriented PC games, with a portfolio spanning turn-based tactics, science-fiction strategy, and strategy role-playing properties.

• Turn-based strategy and strategy role-playing games

  Disciples series

  The Disciples series is a dark fantasy strategy property associated with turn-based kingdom management, tactical combat, faction-based progression, and role-playing elements. Strategy First is identified as a publisher of games in the series.

• Tactical strategy games

  Jagged Alliance series

  Jagged Alliance is a tactical strategy series centered on squad management, mercenary selection, equipment, and combat decisions. Strategy First is identified among the publishers connected with the franchise.

• Science-fiction real-time strategy game

  O.R.B.: Off-World Resource Base

  O.R.B.: Off-World Resource Base is a science-fiction strategy title listed among Strategy First's published games. Its setting and resource-oriented title place it within the company's space-strategy portfolio.

• Space strategy games

  Space Empires series

  The Space Empires series is a space-based strategy property associated with empire management, exploration, research, and interstellar conflict. It is listed among the series released by Strategy First.

• 2005

  Acquisition by Silverstar HoldingsM&A

  Background

  Silverstar Holdings sought to use Strategy First as a niche publisher alongside its acquisition of Empire Interactive.

  Action taken

  Silverstar acquired Strategy First through bankruptcy proceedings, contributing cash and shares to creditors and assuming part of the existing debt.

  Aftermath

  Strategy First continued under Silverstar's ownership, with a narrower niche-publishing role described by Silverstar management.

  Acquisition consideration and assumed debt. US$600,000 cash, 400,000 common shares, and US$400,000 of assumed debt (April 22, 2005)

  Source

• 2004

  Bankruptcy filingOther

  Background

  By May 2004, Strategy First had accumulated more than US$5 million in debt and had reduced its workforce from more than 100 employees in three offices to approximately 16 employees in Montreal.

  Action taken

  The company filed for bankruptcy on August 4, 2004.

  Aftermath

  The insolvency left royalty claims involving developers and led Techland to terminate its distribution relationship with Strategy First.

  Reported debt. More than US$5 million (May 2004)

  Source

• 2009

  Silverstar Holdings is delisted from NASDAQ[1]Strategy Firsten.wikipedia.org

  Other

  Silverstar Holdings was delisted from NASDAQ in March 2009, an event relevant to the later corporate context of Strategy First's parent company.

• 2005

  Silverstar Holdings acquires Strategy First[1]Strategy Firsten.wikipedia.org

  M&A

  Silverstar Holdings announced that it had acquired Strategy First from bankruptcy proceedings and planned to operate it as a niche game publisher.

• 2005

  Strategy First absorbs Malfador Machinations assets[1]Strategy Firsten.wikipedia.org

  M&A

  Strategy First acquired and absorbed the assets of Malfador Machinations, with Malfador chief executive Aaron Hall joining Strategy First's management.

• 2004

  Strategy First files for bankruptcy[1]Strategy Firsten.wikipedia.org

  Bankruptcy · Other

  After accumulating more than US$5 million in debt and substantially reducing its workforce, Strategy First filed for bankruptcy on August 4, 2004.

• 2004

  Techland ends distribution relationship with Strategy First[1]Strategy Firsten.wikipedia.org

  Other

  Following Strategy First's insolvency and unpaid obligations affecting developers, Techland ended the company's authority to distribute Techland products effective September 18, 2004.

1. 1Strategy Firsten.wikipedia.org