Gaming firms have focused on the game industry as their next big thing to consider in their quest to create an expanded portfolio of games.
This month JetSynthesys revealed a brand new venture called Jetapult which will invest up to 100 million dollars in buying games studios for the coming nine months.
“We have purchased one studio and are currently in talks to acquire another. Based upon our research, we’ve identified a list of 150 potential candidates,” said Rajan Navani managing director of JetSynthesys.
The current decline in the valuations of companies said Nitish Mittersain who is the joint MD at
NSE 0.96 percent, will also provide many acquisition possibilities, especially about blockchain technology as well as augmented and virtual reality. “Acquisitions are part of the DNA of the company and Nazara will continue to look at opportunities across the spectrum of gaming firms, including game studios,” said the CEO. declared.
The most desirable is, as he explained, to be companies that generate some amount of revenue and avoid businesses that have yet to demonstrate that their strategy is viable.
Over the last year, there’s been plenty of activity within this sector including Microsoft’s purchase of Activision Blizzard for over $68 billion being one of the largest deals in the business. In the last few months, Pokemon Go developer Niantic purchased the augmented reality gaming studio NZXR and, a little closer to at home MoonFrog Labs and PlaySimple were purchased by Swedish gaming firms.
Tech companies are buying game studios to gain access to the community, content revenues, as well as expertise, according to Rupantar Guha, the principal analyst for thematic intelligence with GlobalData. “One of the fastest methods of achieving NSE 4.90 percent in a theme is to purchase an established company performing well. Gaming is a highly competitive market and tech companies do not like to start with a blank slate. Thus buying assets is an ideal method to own revenue, content as well as skills,” he said.
The Indian video games industry is expected to be worth more than $2 billion in 2023, according to GlobalData. This lucrative market is the primary reason that tech firms buy games studios or invest in them Guha added.
With how diverse the business it’s difficult to know what the next blockbuster movie will be. The creation of a variety of studios that specialize in different kinds of games provides these businesses with an increased chance of securing the prize with a single game that has a huge success.
Emerging technologies such as Web3 and virtual and augmented reality are predicted to be the driving force behind the next phase of growth. Mittersain declared that Nazara might consider investment or acquisitions in these areas rather than the course of starting with starting from scratch.
Often, studios in the Indie space have a great game but have a difficult time growing it and promoting it. Navani stated that Jetapult will focus on buying and expanding revenue-generating Indie game development studios in emerging markets such as India, South-East Asia, the Middle East, South America, and Australia as well as New Zealand to fill a shortfall of smart capital for the long-term in the field.
“This will also create and grow a roster of gaming companies commercially and help them scale from a local to the international market,” said the official. stated.
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