Weekly News Digest #12

Public Mobile Gaming Publishers: Resilience & Adaptation in a Shifting Landscape

The mobile gaming market remains one of the largest segments in interactive entertainment, with in-app purchases (IAP) generating ~$60B in 2024. However, the mobile gaming industry has undergone a significant transformation over the past five years, shifting from a high-growth expansion to a mature market characterized by operational efficiency, financial discipline, and single-digit growth.

In our newest feature, sponsored by $GDEV, we’ll dive into how Western publicly listed mobile gaming publishers—Playtika, Stillfront, Modern Times Group, GDEV, and Playstudios—are tackling the shifting landscape. Each brings a unique angle to their gaming portfolios—from social casino and casual to mid-core segments—and distinct strategic approaches. We’ll explore how they’re adapting to the new market realities by addressing five key questions:

• What are the main financial trends among mobile gaming companies?
• How have operational metrics evolved over time?
• How have market capitalization and share price dynamics reflected these shifts?
• What strategies have companies implemented to optimize their business?

We thank MY.GAMES for supporting this digest.

MERGERS & ACQUISITIONS

US-based app analytics firm Sensor Tower has acquired UK-based gaming market research company Video Game Insights (VGI) for an undisclosed sum. The deal aims to strengthen Sensor Tower’s research ecosystem by enhancing its coverage of the PC & Console markets. VGI will operate under the Sensor Tower brand, with its team integrated into the company. This marks Sensor Tower’s second acquisition of a gaming research firm, following its acquisition of data.ai in Mar’24.

VENTURE FINANCING

UAE-based web3 gaming platform PlaysOut has raised $7m in a Seed funding round at a $70m valuation. The round was led by OKX Ventures, KBW Ventures, and Kenetic Capital, with participation from Pacific Century Group, Gam3Girl Ventures, Oak Grove Ventures, Aptos, and other investors. The funds will support the expansion of PlaysOut’s ecosystem and strategic partnerships. The company provides infrastructure for integrating mini-games within super-apps and plans to launch its own Software Development Kit (SDK) within its ecosystem in May’25. PlaysOut previously raised $5m in Aug’24.

US-based game engine developer PhilosopherKing has raised $3m in a Seed funding round led by 468 Capital and 212. The investment will support team expansion and platform development. PhilosopherKing is developing its proprietary AI engine, which dynamically generates adaptive narratives, characters, and gameplay elements based on player decisions in RPGs. The company is also exploring potential expansion into other sectors, including media, HR, and education.

India-based mobile game developer Qila Games has secured $1m in a pre-Seed funding round led by Chimera VC, with participation from Visceral Capital, 91 Ventures, Atrium Angels, Ventatana Ventures, Untitled Ventures, and angel investors. The funds will support the expansion of Qila Games’ portfolio, including the development of new titles. The company focuses on developing social-driven hybrid casual games for the Indian market.

Germany-based esports organization G2 Esports has raised an undisclosed seven-figure amount in a Series B funding round led by WISE Ventures, with participation from the Minnesota Vikings, The Tornante and Wilf family. The funds will support G2 Esports’ global expansion, including entry into new titles, investments in the Call of Duty League, and enhanced fan engagement initiatives. G2 Esports previously established a strategic partnership with the Wilf family in 2023, which facilitated the takeover of Minnesota Rokkr’s slot in the Call of Duty League.

Turkey-based mobile game developer SekGames has raised an undisclosed amount in a pre-Seed funding round from Qatar Development Bank. The funds will support the company’s growth and the expansion of its gaming portfolio. The investment is part of Qatar’s Startup Investment Program, which offers participants up to $500k to establish operations in Qatar, with the potential for up to $5m in funding to support market activity in the country. SekGames develops hypercasual titles, including Dream Hospital, Money Print Idle, Police Station IDLE, and Doll Factory!, which have collectively surpassed 13 million lifetime downloads, according to AppMagic.

US-based game developer Operative Games has secured an undisclosed amount in funding from 1AM Gaming, Samsung Next, and LongJourney.vc. The company is developing immersive titles using its proprietary platform StoryEngine, which enhances in-game character depth and improves player experience. Operative Games is currently working on The Operative, a title that delivers an immersive experience through phone call interactions.

FUNDRAISING

US-based investment initiative Elbow Grease Games has completed its EGG Prototype Mixer accelerator program, which featured 10 participating gaming companies. Most participants were game prototype developers, with one candidate specializing in software development. The initiative operates as a Y Combinator-style accelerator, focusing on investing in game prototypes.