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

Trading Comparables

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