[Interview] How "Valheim," initially forecasted at up to 60,000 copies, Was Born and Grew Big—Designers Share Their Stories at TGS

“Valheim,” which began its early access phase in 2021, sold five million copies within one month of launch and claimed the title of “most played game on Steam.” It surpassed ten million sales by June 2022, becoming a global phenomenon. A PlayStation 5 release is scheduled for 2026, with the PC version also expected to receive its official 1.0 release that year.

Despite this remarkable success, it wasn’t always clear from the beginning that “Valheim” would achieve such heights. At the Tokyo Game Show booth, we spoke with Jonathan Smårs, Designer & Lead Engineer, and Lisa Tveit Kolfjord, 3D Artist, to learn how “Valheim” was conceived and developed.

Thumbnail image No.006 / [Interview] How did “Valheim,” initially predicted to sell at most 60,000 copies, grow into a hit? Designers share their story at TGS

“Valheim” Predicted to Sell at Most 60,000 Copies

Thumbnail image No.002 / [Interview] How did “Valheim,” initially predicted to sell at most 60,000 copies, grow into a hit? Designers share their story at TGS

4Gamer:
Today we appreciate your time. First, why did you decide to exhibit at the Tokyo Game Show?

Smårs:
The announcement of the PlayStation 5 version was a major catalyst. It’s not an exaggeration to say that it directly led us here—our promotional video and trailer were even narrated specifically for the Japanese market. The PS5 release will be a complete “Valheim” experience from version 1.0, with cross-play capability between PC and PlayStation 5.

4Gamer:
I actually saw an early version of Valheim before its launch in the town of Shebde. At that time, I could sense some uncertainty about whether it would sell well—but ultimately, it became a massive hit exceeding twelve million copies. Did you anticipate this outcome?

Kolfjord:
Absolutely not. We thought it might sell around 20,000 at best, maybe up to 30,000–40,000. Coffee Stain Studios, our publisher, had predicted a maximum of 60,000 copies. When sales suddenly jumped to half a million, we were completely shocked.

Smårs:
Honestly, we just hoped it would sell enough for the company to survive (laughs).

4Gamer:
The open-world survival action genre is highly competitive—with several titles rivaling or even surpassing Valheim in scale. What do you believe sets Valheim apart?

Kolfjord:
First and foremost, building mechanics are a major feature. In Valheim, when you dismantle a structure, all the materials used to build it return 100%. This greatly reduces repetitive tasks like gathering resources. Additionally, unlike other games, there’s a clear set of rules for construction—this helps players create well-organized homes and prevents confusion about what to build next. While freedom is great, too much freedom can be overwhelming.

Smårs:
Another key feature is how easy it is to divide tasks during multiplayer with friends. You can split roles easily: one person cuts trees, another fights enemies, someone else builds the house—everyone can focus on what they enjoy most.

4Gamer:
This question has been asked many times before, and I’ve heard it myself, so I feel a bit embarrassed asking again—but why did you choose Viking culture as your theme?

Kolfjord:
The main reason is that it’s deeply familiar to us. Valheim draws from Norse mythology, but we also incorporated stories and folklore common in our own childhoods. For example, the monster “Nekker” appearing by rivers is similar to Japan’s kappa—stories parents used to tell children to make them wary of water.

4Gamer:
Valheim has grown into a large-scale game. How was its roadmap determined? Were there any unexpected developments?

Kolfjord:
Actually, we didn’t define a strict roadmap. We had clear biomes in mind, but the story and narrative were developed as we went along.

Smårs:
An example of an unexpected change: originally, there was no boat at all. The game started with just one large island—so there wasn’t even any sea to cross! But then our team members strongly insisted, “How can a Viking-themed game not have boats?” Their passionate feedback led directly to the addition of both boats and navigable seas.

IronGate Studio: A Small Team’s Journey

Thumbnail image No.003 / [Interview] How did “Valheim,” initially predicted to sell at most 60,000 copies, grow into a hit? Designers share their story at TGS

4Gamer:
Valheim was made by a small team. How many people were in IronGate Studio at the beginning, and how many are there now?

Smårs:
We started with just one person—quickly growing to two or three—but it remained a tiny team. Even today, we’re still small: 16 total employees, with only seven or eight involved in development.

4Gamer:
While indie games have gained popularity, there are also reports of internal conflicts and even team dissolutions within dev teams. For a small studio like IronGate, such fractures could be fatal. Could you share your approach to managing a small team effectively?

Smårs:
I believe we’ve done well so far—no one has left the company since its inception. One reason is that there’s no culture of “This success is all because of me.” That helps maintain harmony.

Kolfjord:
From a development perspective, Valheim isn’t yet finished—it’s still evolving. Everyone feels responsible for seeing it through to version 1.0 and beyond. We’re not just coworkers; we’re like travel companions on this journey. That sense of shared purpose keeps us united and prevents people from leaving.

Smårs:
I personally think the current size of IronGate is ideal. I know exactly what everyone does, and I understand their skills. In larger companies, you might have a face-to-face relationship with someone but not know what they actually do—here, that’s impossible. This deep mutual understanding fosters trust and communication, which greatly benefits game development.

4Gamer:
How do you recruit team members? There’s a recruitment page on your website—but surely it can’t be that simple to find the right fit. Valheim is globally famous now; applications are likely numerous. How do you gain confidence in selecting someone who truly fits?

Smårs:
We only hire people who speak Swedish. Because we’re such a small team, close communication is essential. We’d consider foreign applicants if they speak Swedish—but so far, all our members have been Swedish.

Kolfjord:
Also, IronGate Studios isn’t fully remote—we require regular office visits. Since the office is in Shebde, that requirement alone makes recruitment quite selective.

4Gamer:
So it’s a pretty narrow gate. That would suggest most applicants are from Shebde itself?

Smårs:
Not everyone lives in Shebde (laughs). But I did graduate from Shebde University and joined IronGate afterward.

The Reality of Sweden’s Game Development Support System

Thumbnail image No.005 / [Interview] How did “Valheim,” initially predicted to sell at most 60,000 copies, grow into a hit? Designers share their story at TGS

4Gamer:
It’s great that Sweden Game Arena (SGA) contributes to regional employment. Now, I’d like to talk about SGA—how helpful was it in practice for Valheim?

Smårs:
We joined the team after leaving SGA’s support program, so I don’t know exactly how beneficial it was during our time under their umbrella. However, engineers were happy they could rent office space at a low cost. We also gained access to valuable networks and connections that would’ve been impossible for us to obtain otherwise.

Kolfjord:
IronGate Studio continues working closely with SGA. We’ve spoken at the Sweden Game Conference, are sponsors of SGA, and support initiatives like mentorship programs for female developers and development assistance.

4Gamer:
I’ve covered SGA multiple times—I think it’s an outstanding initiative. But no system is perfect; I imagine there might be some criticisms. Could you share any?

Kolfjord:
Because SGA is regionally based, it struggles to reach beyond local areas. Beyond that, this isn’t really a criticism of SGA but rather the Swedish government: there’s almost no national-level support for the game industry. No grants are available.

Sweden has long been known for its steel industry—but today, our game industry is already larger than steel. Yet it receives no state funding. That’s absurd. If the government backed SGA properly, they could expand nationwide and create even better conditions for game development… But all they do is talk—no actual investment (laughs).

Small teams can produce niche, core games with minimal investment. And if such a game becomes successful overseas, it quickly contributes to tax revenue. The return on investment is fast—but the government still refuses to support this.

4Gamer:
Even though Sweden has other excellent programs beyond SGA, at the governmental level, support remains surprisingly thin…

Game Development in Shebde

Thumbnail image No.004 / [Interview] How did “Valheim,” initially predicted to sell at most 60,000 copies, grow into a hit? Designers share their story at TGS

4Gamer:
To be honest, Shebde doesn’t seem very appealing to young people—there’s just a bowling alley and a movie theater for entertainment.

Both:
That’s exactly right (laughs).

4Gamer:
So have you ever considered relocating your office? Maybe to Stockholm—or even further south, somewhere with a warmer climate?

Kolfjord:
We’ve never thought about moving the office. First and foremost, our CEO loves Shebde deeply—he’s committed to staying here for good. So as long as he’s in charge, it’s unlikely we’ll leave (laughs). Besides, if you can tolerate it, commuting is always an option—life base in a city, work in Shebde.

Smårs:
Also, sure, maybe Shebde isn’t the most exciting town—but our office? It’s absolutely awesome (laughs).

4Gamer:
Shebde is home to several globally renowned game companies. Coffee Stain Studios—Valheim’s publisher—is also based here. What’s it like working with them as a publisher? Do they ever ask for things like adding goats?

Kolfjord:
Our relationship with Coffee Stain Studios has been excellent—they’re genuinely great people. They supported us heavily on marketing plans and securing streamers before release. Of course, we’ve also had complete creative freedom—no one told us to add goats (laughs). We don’t hand over everything to them either: localization is handled in-house at IronGate, and our participation in the Tokyo Game Show was managed directly with Ukiyo Studios.

4Gamer:
In recent years, indie games have gained global attention—but bad news occasionally surfaces too. For example, developers being scammed by publishers. Many Japanese devs are concerned about this issue. How did IronGate find such a great partner? Is there any secret?

Kolfjord:
The truth is, we didn’t receive many partnership offers for Valheim—so the opportunity from Coffee Stain Studios was rare. Their office is literally just across the street from ours. We’ve been chatting regularly and sharing meals often—they were already trusted colleagues before formal collaboration.

Smårs:
Coffee Stain Studios believed in our small, brand-new project when few others did. And we weren’t selling ourselves—we were simply a team with a vision. To hear them say “We’ll bet on you” was incredibly encouraging.

4Gamer:
It seems your approach of not treating publishers as distant outsiders really helped. Finally, any message for Japanese fans?

Smårs:
First, I want to say we’re truly enjoying the Tokyo Game Show—interacting with fans is a real joy. And just as enjoyable will be Valheim’s PlayStation 5 version.

Kolfjord:
We’ve enjoyed Japanese culture through manga, anime, and games—we’d love for players in Japan to enjoy Swedish mythology and folklore through this game too. Also, because we’re a small team, we read every fan letter and feedback. We’d be thrilled to receive your messages of support or suggestions.

4Gamer:
Thank you very much today.

Official “Valheim” Website