As the mobile gaming industry continues to thrive, numerous companies have been making lucrative deals and strategic partnerships in July. These developments highlight the significance of mobile gaming as a profitable sector within the entertainment industry. Let’s take a look at some of the biggest deals and announcements from the past month.
Tencent’s Acquisition Spree
Tencent, one of the world’s largest mobile game makers, made several noteworthy acquisitions in July. On July 14, Tencent’s subsidiary, Lightspeed Studios, acquired Lucid Games, a Liverpool-based developer known for the popular vehicular combat game, Destruction AllStars. This was followed by the acquisition of Techland, the developer of Dying Light, on July 24. The month concluded with Tencent’s acquisition of Visual Arts, a Japanese visual novel company. These acquisitions demonstrate Tencent’s efforts to expand its interests beyond mobile gaming and explore new revenue streams.
NetEase Partners with Checkout.com
On July 27, NetEase announced a partnership with payment provider Checkout.com. This collaboration aims to enhance payment capabilities in international markets for NetEase’s titles. It addresses challenges such as fraud prevention and fragmented payment methods. NetEase’s decision to expand beyond China and work with Checkout.com reflects its strategic approach to navigate potential future legislative changes and achieve its business goals.
Valhalla Ventures Launches Gaming Investment Fund
Valhalla Ventures, a venture capital firm, recently launched a new fund dedicated to gaming investments. The company is actively seeking audacious entrepreneurs to receive investments ranging from $1 to $2 million. Valhalla Ventures has previously invested in mobile metaverse platform Bunch, indicating potential areas of investment for the fund in the future.
Kahoot Goes Private with $2 Billion Deal
Kahoot, a popular mobile quiz game, gained significant popularity during the pandemic as education went online. While its share price saw a decline in September 2021, the recent $2 billion all-cash private equity deal with General Atlantic and Goldman Sachs demonstrates continued investor confidence in Kahoot. This investment indicates that investors believe Kahoot’s format will remain niche and primarily limited to educational settings.
Sony’s $2 Billion Investment in Extended Reality
Sony has been actively exploring opportunities in mobile gaming, evidenced by its recent partnership with Backbone for the Backbone One peripheral. The company’s announcement of a $2 billion investment in extended reality suggests a potential focus on augmented reality (AR) gaming. With the release of its latest VR headset, PSVR2, and the competition from other players like Apple entering the AR market, Sony’s investment in AR technology on mobile devices could intensify the competition with Microsoft.
Binance Labs Commits $15 Million to Xterio Web3 Platform
Binance Labs, a blockchain incubator, has invested $15 million in Xterio, a web3 games platform. Xterio aims to bridge the gap between free-to-play and blockchain gaming. The investment will allow Xterio to expand its development capabilities, integrate artificial intelligence, and launch its blockchain token on Binance’s BNB chain ecosystem. This strategic partnership further strengthens the growth of web3 gaming.
Hexacore Secures $3.5 Million in Funding Round
Hexacore, a Polish publisher specializing in web3 gaming, recently secured $3.5 million in a funding round led by Scalo Technologies. The funding will support the development of hybrid-monetization focused titles, NFTs, and web3 gaming initiatives. Despite its success in the hypercasual market, Hexacore aims to increase its presence in the web3 space, further emphasizing the industry’s potential.
Screen Australia Invests $3 Million in Gaming
Government agencies and media groups are increasingly recognizing the profitability of the gaming industry. Screen Australia’s investment of $3 million in the gaming sector reflects the government’s intention to expand its presence in this lucrative field. This investment has supported 21 game developers, with an average of $143,000 provided to each developer. Screen Australia’s funding will likely lead to the release of more games on mobile platforms, capitalizing on its accessibility for both consumers and developers.
Eyeball Games Raises $1.5 Million for Blockchain Pool Game
Eyeball Games successfully raised $1.5 million in a pre-seed funding round for its upcoming title, Eyeball Pool. Notably, the game is being developed by the creators of 8 Ball Pool, a highly popular mobile pool game. With support from Ubisoft-backed Digital Asset Fund and White Star Capital, Eyeball Games’ vision for Eyeball Pool has garnered confidence from the gaming industry. The game is set to launch online initially, with a full mobile rollout scheduled for Q1 2024.