GGP Gaming Weekly – Week 50
Highlights
Console market to generate $81B in 2022, according to Deloitte (link)
- This represents a 10% increase YoY, attributed to high-quality content and business model innovation
- Revenue per console player is expected to reach $92 by the end of 2022, in comparison to $23 per PC player and $50 per mobile player
- Software sales, which is composed of video game titles, subscriptions, and in-app purchases, will reach 73% of total 2022 Console revenue, or $59B
- Revenue from subscriptions is expected to surpass $10B, representing over 12% of the total 2022 Console revenue
Sony to revamp PlayStation Plus with new tiers and streaming (link)
- PlayStation Plus will have a three-tier service, which will include PlayStation Now and offer a retro catalog of titles from past Sony platforms
- Sony reported during its May 2021 Investor Relations Day that PlayStation Plus subscribers are approaching 50M
- The new service will be unveiled next Spring
M&A and Capital Raises
Niantic acquires Lowkey (link)
- Lowkey is a social media site that provides video editing and sharing services, primarily around gameplay videos
- Niantic’s head of product suggests that Lowkey’s “leadership in the space will accelerate the social experiences we’re building in our Niantic products”
- Niantic and Lowkey share a common vision for building communities around games and enabling new ways for players to connect
100 Thieves raises $60M at a $460M valuation (link)
- 100 Thieves is a gaming brand and lifestyle company that has esports teams competing in several video games, including Apex Legends, Call of Duty, Call of Duty: Warzone, Fortnite Battle Royale, and League of Legends
- The Company will use the proceeds to expand its business by launching and acquiring new companies
- The round was led by Green Bay Ventures, with additional participation from Breyer Capital, Aglavé Ventures, Tao Capital, Willoughby Capital, and Artist Capital
Zordix acquires Maximum Games for $42M (link)
- Zordix has several game development studios that have created titles including Dustoff Z, and also publishes externally developed titles, including Ponpu and The Lightbringer
- Maximum Games helps companies publish and distribute games, including Kena: Bridge of Spirits, Among Us, and Power Rangers: Battle for the Grid
- Zordix management stated that the acquisition equips Zordix with an infrastructure that has a history of proven success in all aspects of game publishing
- The acquisition’s up-front consideration was $42M, with an additional earn-out of up to $30M in cash and stock
Mainframe Industries raises $22.9M for cloud-native games (link)
- The Finnish-Icelandic Company will use the proceeds to develop a cloud-native MMO game
- The game is an open-world, sandbox MMO, and is expected to have seamless cross-platform compatibility
- The Company previously raised $8.3M in 2020 and expects to have 60 staff by end of 2021, with a new studio in Paris
- The round was led by Andreessen Horowitz, with additional participation from individual investors
Sneaky Panda raises $6M to launch new mobile game (link)
- Sneaky Panda is a new game developer that is building a genre of mobile games it calls “luck-puzzler”, which puts an emphasis on skill and strategy
- The Company will use the proceeds to expand its team size
- The round was led by Bitkraft Ventures, with additional participation from Remagine Ventures, FireArc, and other individual investors
Off raises $3.5M to create social avatars for ‘microverses’ (link)
- Off plans to create a platform called Myty which will host an open ecosystem for avatar-based “microverses”, or small versions of the metaverse
- The Company will use the proceeds to develop its platform, which will support NFTs and add additional features to avatars
- The round was co-led by Hashed and Collab+Currency, with additional participation from Bitkraft Ventures, Electric Capital, Coinbase Ventures, and SamsungNext
Talewind raises $3.4M for new Breezy Bay game and to partner with game developers (link)
- Talewind is a metaverse game developer that plans to build fresh digital experiences for Roblox players
- The Company will use the proceeds to develop its new Breezy Bay game, which is a sandbox RPG that the Company describes as “Animal Crossing meets RuneScape”
- The round includes participation from Firstminute Capital, Animoca Brands, PRO Founders, 1Up Ventures, FJ Labs, and the Sequoia Scout Fund
World Makers raises $3M to develop multiplayer game, Deceit (link)
- The Company will use the proceeds to develop the multiplayer version of its hit horror game, Deceit, which will be released on Console in 2022
- Deceit, which launched on Steam in 2017, has reached 13M downloads since launch, and 17K peak concurrent users
- The round was led by Makers Fund
MetaMundo raises $2.7M to launch 3D NFT marketplace (link)
- MetaMundo is built on the Polygon framework, which connects Ethereum and other blockchains into a comprehensive multi-chain system
- The Company will use the proceeds to develop its suite of 3D model conversion tools, in anticipation of its NFT marketplace launch in 2022
- The round was led by Animoca Brands, with additional participation from Digital Currency Group, Own.fund, Polygon Studios, and others
Unity acquires SyncSketch (link)
- SyncSketch is a collaboration and productivity software for visual artists that allows teams to view, review, and provide feedback on projects
- Unity has meaningfully added to its remote working solutions for creatives through the recent acquisitions of Parsec and Weta Digital
Nordisk acquires Flashbulb Games (link)
- Flashbulb is known for vehicle-building sandbox game Trailmakers and multiplayer brawler Rubber Bandits, which is launching in December
- Nordisk previously owned a 43% stake in the studio, after investing $2.5M in 2017
- The transaction price could amount to several hundred million DKK (100M DKK = $15.2M), depending on the financial performance of Flashbulb Games
Resolution Games acquires Zero Index (link)
- Resolution Games is known for its large library of VR content, and recently revealed its next multiplayer title Ultimechs
- Zero Index adapted Carly and the Reaperman for Oculus Quest earlier this year
- The acquisition will help Resolution expand its library of titles across VR and AR platforms
Other
Polygon partners with GameOn to make new NFT games (link)
- Polygon is the creator of a crypto-based platform that allows users to trade NFTs without paying large fees
- GameOn provides white-labeling services to other gaming and interactive entertainment companies
- The companies are partnering to build new NFT games in Polygon’s scaling platform
- As part of the deal, Polygon will provide funding for 50% of GameOn’s product development costs in the form of a non-dilutive investment