# Bioshock Financial Model BioShock is a first-person action horror game pitched to a publisher for development funding - a game-development studio deal, not an operating startup. - Canonical: https://finamodel.com/startups/bioshock - Excel download: https://finamodel.com/startup-models/bioshock.xlsx - Category: Media/Gaming - Model type: 3-Statement - Founded: 2002 - Geography: Not specified [DECK]. - Customer: B2C ## About the company BioShock began as a publisher funding pitch from Irrational Games for a first-person action-horror RPG and spiritual successor to System Shock 2. The premise places a deprogrammer in an undersea or underground cult complex, with crafting, hackable environments, genetic modification, and story-based multiplayer. The proposed business is a co-publishing development deal, not a mature operating company. A publisher would fund development through milestones; the developer would receive royalties only after the advance and marketing costs had been recouped. The deck also identifies potential film or television value for the intellectual property. The studio’s credentials include System Shock 2, Freedom Force, and The Lost, which was sold to BBC Films, but the research supplies no sales or budget figures. The model should focus on development spend, milestone cash receipts, publisher recoupment, royalties, platform sales, and scenario-based launch outcomes. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition - First-person action horror RPG, spiritual successor to System Shock 2 (1999 Game of the Year). - Setting: undersea/underground cult complex on a remote island; player character is a "deprogrammer" infiltrating a religious cult. - Key differentiators cited: - Deep weapon crafting system (unlimited player-built weapons from modular components). - Environmental manipulation via hackable terminals (physics, gravity, temperature, oxygen, flooding). - Genetic modification system: player splices aquatic/amphibious genotypes into their body. - Narrative by Ken Levine (writer of System Shock 2, Thief, Freedom Force). - Unreal Warfare engine + Karma physics engine. - Story-based multiplayer deathmatch. - IP upside: franchise with film/TV potential cited explicitly; Irrational's prior game (The Lost) sold to BBC Films. ## Market - "The first person shooter market on PC and especially console is stronger than ever." - qualitative only, no TAM/SAM/SOM figures provided. - Comparables cited for positioning: Halo, Half-Life, System Shock 2, Thief, Freedom Force. - No market size numbers in deck. ## Revenue model - Publisher pays development milestones (advance). - Developer earns royalties after publisher recoups advance + marketing costs. - Platforms: PC + console (implied by repeated "console and PC" references). ## Traction & metrics - System Shock 2: "1999's game of the year". - Freedom Force: referenced as Irrational's "hit". - The Lost: sold as feature film to BBC Films. No revenue figures for any of these titles appear in the deck. ## Competition / moat - Competitive positioning: BioShock positioned against Halo and Half-Life as the next defining FPS franchise. - Moat / differentiation claims: - Team pedigree: Thief, System Shock 2, Freedom Force alumni. - Three interlocking systems (weapons, environment, genetics) cited as unprecedented in genre. - Ken Levine as writer - named IP behind two critically acclaimed titles. - Unreal Warfare engine (cutting-edge for 2002). - Film/TV franchise potential as secondary moat. - No competitive landscape slide or market share data. ## Team & funding ask / use of funds - Studio: Irrational Games, LLC. - Key personnel mentioned by role/title: Not enumerated in the 9 slides captured (ToC references a "Key Personnel" section at slide 18 and "Press / Praise for Irrational" at slides 19–20, but those slides are not in this dataset). ## Recommended financial model - **Archetype + why:** Game development project P&L / publisher deal model. This is not an operating startup - it is a developer (Irrational Games) seeking a publishing partner. The appropriate model is a game-development budget + milestone-payment cash flow with royalty waterfall, not an ARR or 3-statement operating model. Structure: (a) Development budget by milestone/quarter, (b) Publisher advance schedule, (c) Post-launch revenue share / royalty recoupment waterfall, (d) Platform split (PC vs. console). - **Forecast horizon & granularity:** Development phase ~24–36 months; post-launch royalty tail 3–5 years. Granularity: quarterly during dev, annual post-launch. - **Key drivers & assumptions:** - Platform revenue split (retailer take):. - Sequel / franchise optionality: mentioned as strategic goal; model should include option value scenario. - **Scenarios (Base / Bull / Bear - which variables flex):** - Bear: 200K units, no sequel, developer earns no royalties past advance. - Base: 500K units, sequel greenlit after 18 months post-launch. - Bull: 1M+ units, franchise established (film deal, sequel, ports), royalties flow to developer. - Key flex variables: unit sales, development cost overrun, platform mix (PC vs. console royalty rates differ), time to recoupment. - **Required sheets / outputs:** 1. Dev Budget & Milestone Schedule - spending by quarter, cumulative burn vs. advance draw. 2. Revenue Waterfall - gross retail → net receipts → publisher recoupment → developer royalty. 3. Platform Split - PC vs. console unit and revenue breakdown. 4. Royalty Recoupment Schedule - when (if) developer breaks even on advance. 5. Scenario Summary - Bear / Base / Bull NPV of developer economics. 6. Franchise Optionality (optional) - sequel/film/port upside. ## Frequently asked questions ### Is the Bioshock financial model free? Yes. The Bioshock model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.