A neoliberal economic theory explains that we must feed the horse so that the grains that escape from the trough feed the sparrows. The Quebec video game (JV) sector has confirmed this rule for a good two decades. Giants like Ubisoft grew and eventually spawned small studios created by former employees of multinationals based in Montreal.
Behavior represents the most notable exception, the example to follow for independent businesses that want to progress without being swallowed up by bigger and stronger companies. Behavior is the biggest of the small independents or the smallest of the big studios.
“We will first put all of this into perspective,” comments Rémi Racine, founder and CEO of the company. Behavior makes “let’s put” 300 million [de dollars] Canadians, or 225 million US dollars in annual turnover. The industry generates 180 billion US dollars per year worldwide. We’re big, but we’re a drop in the ocean, 0.1% of the industry. Many companies make less than US$225 million per year. But many like Sony make 20 billion. »
He also adds that this terraced location – no horses or sparrows either – requires a lot of creativity: “When you are relatively small, you have to be innovative. I can’t invest 150 million to develop a game. I have to invest 15 or 30 million and find my niche. »
Mr. Racine was met in his Mile-Ex studios. He founded his JV company in 1992, abandoning his property management company. “I was 30 years old, business was okay, but didn’t excite me. ” It was gamer, a friend suggested he get into this emerging sector and he dove in. Behavior quickly grew by first developing console games for publishing clients. The turning point came with the in-house creation Dead by Daylighta “horror survivor” type multiplayer game released in 2016. The eighth version was launched in June 2023.
“We had invested 5 million with our partner in Sweden,” says CEO Racine. We made our money back in three weeks. We now have 60 million users and the game has generated several hundred million in revenue. »
Behavior brings together more than 1,300 employees. A small half carry out “service” contracts for around 100 million in annual revenue; another half of the human resources develop in-house games; a third, smaller, expanding section creates virtual universes, for example for flight simulators, shows of sound and light or immersive interactive exhibitions.
These successes obviously attracted attention. “I have always had purchase offers, not every year, but from all kinds of people who came knocking on my door,” admits Mr. Racine. I wasn’t interested in going to work for them, or it wasn’t the right time to sell, or I knew I was going to double my turnover during the negotiations. I know we’re going to have to move. I need to have more than 100 employee shareholders. Something will happen in the next few years. We’re definitely going to go public. »
Behavior, still a private company, recently began purchasing studios in the United States, England and the Netherlands, in addition to opening an office in Toronto. “Studios in Europe are used to providing services to businesses. Now, we are looking to buy games that work, which already have a certain reputation. We are not for sale, but we are buying. »