Week in Mobile Games E29 - Playtika acquires SuperPlay, and the secret multi-billion dollar games platform WeChat Minigames
Sep 21, 2024
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Craig Chapple, a mobile games industry commentator, Paige Cook, an expert analyst on trends, and Aaron Astle, a contributor focused on the latest developments, discuss Playtika's staggering $1.95 billion acquisition of SuperPlay. They shed light on the secretive yet lucrative world of WeChat Minigames, revealing how it generated $2.3 billion in just the first half of 2024. The trio also analyzes the shifting landscape of mobile gaming and why companies are moving away from traditional gaming models.
Playtika's $1.95 billion acquisition of Superplay underscores the rising valuations of successful mobile game studios in a competitive market.
The cancellation of Metacore's Everdale highlights the challenges studios face when attempting to achieve market fit after initial successes.
N-Dreams' layoffs affecting 17.5% of its workforce reflect the harsh realities for VR developers in an increasingly difficult market.
Deep dives
The Importance of Audio Accessibility in Mobile Gaming
The podcast discusses King's focus on enhancing audio accessibility features within mobile games, a notable trend in the gaming industry. Specific examples include adjustments that allow audio to be channeled through one side for players with hearing impairments. This initiative reflects a growing awareness and commitment to creating inclusive gaming experiences, which have traditionally been more prevalent in PC and console gaming. The emphasis on accessibility represents a significant step forward for mobile gaming, as it aims to accommodate a wider range of players.
Playtika's Major Acquisition of Superplay
Playtika's acquisition of Superplay for $1.95 billion marks a significant event in the mobile gaming sector, highlighting the increasing valuation of successful studios. The deal includes an upfront payment of $700 million, with potential earnouts reaching up to $2 billion based on performance targets. Superplay has demonstrated impressive growth, generating substantial revenues in recent years, suggesting a promising future for Playtika's investment. This acquisition raises questions about market trends and the sustainability of high valuations in the current gaming environment.
The Challenges Faced by Metacore and Supercell
Metacore's decision to end the development of Everdale and return the IP to Supercell signifies the difficulties studios face in achieving market fit after initial successes. The canceled development, which followed Supercell's own halt on the game, raises concerns about the sustainability of new IPs in a competitive landscape. The podcast notes that companies often struggle to replicate the success of standout titles, as seen with Metacore's previous hit, Merged Mansion. While it is disappointing for fans, the rationale behind ceasing development may be a strategic decision to focus on more viable opportunities.
Layoffs in the VR Gaming Sector
N-Dreams' announcement of layoffs impacting 17.5% of its staff highlights the challenging environment for VR game developers. Despite developing titles unaffected by these layoffs, the company's shift suggests a renewed strategic focus amidst a tough market for VR. The firm, previously acquired for $110 million, has pivoted before, which raises concerns about the sustainability of VR as a growing segment of the gaming industry. This situation illustrates broader issues within gaming companies as they navigate financial pressures and reassess their operational needs.
The EU's Regulatory Actions Against Apple's Ecosystem
The European Commission's order for Apple to open its iOS ecosystem to competition indicates growing regulatory scrutiny on major tech companies. The EU has begun proceedings to ensure Apple provides effective interoperability with other devices, which could significantly impact how the company operates its ecosystem. This action underscores a shift towards stricter regulations aimed at promoting fair competition among digital platforms. Companies like Epic Games have long argued for these changes, and the EU's proactive stance suggests a commitment to enforcing compliance among tech giants.
Craig Chapple, Paige Cook, Aaron Astle from the PocketGamer.biz team discuss the latest mobile games industry news from the past week.
On this week's episode the team discusses Playtika's $1.95bn acquisition of SuperPlay, dive into WeChat Minigames - the multi-billion dollar games platform you know nothing about, and analyse why games companies are moving away from gaming.
** Let's Connect **
👉🏻 Twitter - https://twitter.com/pgbiz
👉🏻 LinkedIn Group - https://www.linkedin.com/company/pocketgamer-biz/
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👉🏻Pocket Gamer Mobile Games Awards Winners - https://www.pocketgamer.biz/mga2024/winners/
👉🏻 PocketGamer.biz Mobile Games Industry Trends Survey - https://www.pocketgamer.biz/what-are-the-hottest-mobile-gaming-trends-right-now-let-us-know-in-our-2024-mobile-games-industry-survey/
**Articles**
👉🏻 Playtika to acquire Dice Dreams developer SuperPlay for up to $1.95 billion - https://www.pocketgamer.biz/playtika-to-acquire-dice-dreams-developer-superplay-for-up-to-195-billion/
👉🏻 Behind the scenes of WeChat Minigames and how it has generated $2.3 billion in the first half of 2024 - https://www.pocketgamer.biz/behind-the-scenes-of-wechat-minigames-and-how-it-has-generated-23-billion-in-the-first-half-of-2024/
👉🏻 Are publishers leaving games behind? - https://www.pocketgamer.biz/are-publishers-leaving-games-behind/
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