Zebeth Media Solutions

Gaming

Blizzard ends 14-year licensing deal with NetEase in China • ZebethMedia

In a somewhat surprising turn, Blizzard Activision, the California-based gaming publisher behind global hits like World of Warcraft and Overwatch, will be suspending most of its games in China due to the expiration of licensing agreements with NetEase, the second-largest gaming company in the country. Blizzard’s announcement is set to end a 14-year licensing partnership between the two gaming giants. All told, Blizzard has been providing gaming services in China through various partners, including Electronic Arts-backed The9, for 20 years. From January 2023, most of Blizzard’s titles will stop operating in China. That includes the likes of World of Warcraft, Warcraft III: Reforged, Overwatch, the StarCraft series, and Diablo III. Diablo Immortal co-development and publishing is covered under a separate agreement between the two companies, Blizzard said. The companies each released their own response explaining the end of the marriage. ”The two parties have not reached a deal to renew the agreements that is consistent with Blizzard’s operating principles and commitments to players and employees, and the agreements are set to expire in January 2023,” said Blizzard. The decision came at a time when a silver lining appears in China’s gaming industry, which has been hit with heavy handed regulations over the last few years. China’s state media outlet People’s Daily published an op-ed this week titled “the opportunity in the gaming industry cannot be missed,” sending Chinese game stocks surging. But Blizzard isn’t giving up on China. “We’re immensely grateful for the passion our Chinese community has shown throughout the nearly 20 years we’ve been bringing our games to China through NetEase and other partners,” said Mike Ybarra, president of Blizzard Entertainment. “Their enthusiasm and creativity inspire us, and we are looking for alternatives to bring our games back to players in the future.” The termination of the partnership seems to have limited impact on NetEase’s bottom line. The firm said in a statement that “the net revenues and net income contribution from these licensed Blizzard games represented low single digits asa percentage of NetEase’s totalnet revenues and net income in 2021 and in the first nine months of 2022.” Interestingly, NetEase also had this to say: “We hold high regard in our product and operational standards and abide by our commitments to Chinese players.” Is NetEase hinting at its dissatisfaction with how Blizzard operates in China? In any case, the divorce doesn’t sound like an amicable one.

Microsoft Teams now lets you challenge colleagues to a game of Minesweeper or Solitaire • ZebethMedia

With remote or hybrid work going nowhere any time soon, Microsoft today announced new social gaming functionality inside its Teams productivity and collaboration platform. Available to Teams Enterprise and Education subscribers only, the new “Games for Work” app allows colleagues to challenge each other to a game of Minesweeper, Wordament, Icebreaker, and even Solitaire, a classic card game familiar to anyone who has used Windows from 1990 onwards. Microsoft said that each game — including Solitaire — has a multiplayer option for up to 250 players, with support for those only wishing to spectate. And given that the games are only available for paying Teams subscribers, no ads are included. The new app was developed by an Xbox Games Studio called Microsoft Casual Games. Microsoft Solitaire While baking games into what is ostensibly a business product for most people might seem counterintuitive, the logic is sound enough: workmates have long engaged in games socially at work, whether it’s table tennis or a game of cards during lunch. For remote workers, that desire to connect and interact competitively is surely still there. “Games promote creativity, collaboration and communication in powerful and unique ways, and we can’t wait to see the how the Games for Work app on Microsoft Teams inspires productivity and helps foster connections in the workplace,” noted Jill Braff, general manager of integrations and casual games at Microsoft, in a blog post. The Games for Work app integrates with Teams on desktop and mobile, with Microsoft adding that it plans to add new games in the future. 

Yahaha raises $40M more for its user-generated, low-code immersive gaming platform • ZebethMedia

Yahaha, a Helsinki- and Shanghai-based immersive, user-generated, low-code gaming platform founded by a group of Chinese gaming vets, made a splash in January when it announced a cumulative $50 million in funding ahead of its alpha launch in April. Now, with 100,000 creators and hundreds of thousands of players, it’s raised a further $40 million to continue building out its product — specifically to bring in monetization features and more social hooks — as well as to hire more talent and for business development. Yahaha is describing this as an extension to its previous round, specifically a “Series A+.” We are asking for an updated valuation, but for some context, when it announced funding 11 months ago, I was told that the valuation was a “few hundred million” (so in the wide range of $300-500 million). The raise and valuation both stand out against a backdrop of slim fundraising, especially for consumer startups. Yahaha styles itself as a dual-headquartered company, but its investors in this latest raise are all out of China and greater Asia. Singapore’s Temasek and Chinese internet giant Alibaba are co-leading this investment, with another Chinese company, 37 Interactive Entertainment, also participating. Previously the company had raised funding from 5Y Capital, HillHouse, Coatue, ZhenFund, Bertelsmann Asia Investments, BiliBili and Xiaomi. The company said it now has more than 150 employees, with offices in Helsinki, Seoul and Shanghai. LinkedIn, which shut down operations in China last year, notes that about half of the company’s employees registered on its platform identify as based out of Shanghai. “Metaverse” as a concept has seen a lot of hype, especially earlier this year — spearheaded in no small part by one of the biggest consumer internet businesses of our time, Facebook, rebranding itself as “Meta” and going all-in on the concept. A lot of that has not come to much so far, one big bellwether being Meta itself knocking back an own-goal in its own efforts. However, most universally agree that gaming has been one of the few highlights, with gamers willing to pay for and use hardware and software to improve the immersive-ness of their experiences. Yahaha is tapping into that opportunity and coupling it with another couple of big trends. User-generated content has long been a popular aspect of gaming and entertainment overall, but more recently it’s taken on a more sophisticated, businesslike aspect: people who in the past might have created media for fun have now become “creators” who see business opportunities in building content and and using it to connect with audiences. Not all of those creators — not many of them at all, in fact — are “technical”, so that is leading to attention (and funding) for companies that are building platforms to help creators create and spin up their business opportunities without a lot of heavy technical lifting. And that’s where Yahaha comes in. The company’s founders — Chris Zhu (CEO), Pengfei Zhang (COO) and Hao Min (CTO) — all worked together as engineers at cross-platform gaming engine Unity — indeed Yahaha has been described to me as being built in partnership with Unity — and their low-code platform aims to do all that heavy lifting behind the scenes. With an eye to creators and the businesses they are building, the new features the product will be getting will include more “monetization modules” and other commercial developments, said Zhu. “We’ve seen fantastic growth in YAHAHA throughout the Early Alpha stage, and with over 100,000 creators signing up to make content with us, we are building on a strong foundation,” Zhu said in a statement. “This round of funding signifies the next step we are taking with YAHAHA, opening up more creator experiences monetization modules. We are also continuing to pioneer by investing in key areas of the community and by building relationships with brands that share our values, aligning ourselves with experts in the fields of game development, 3D asset creation and more. With YAHAHA, we’re not just ushering in the next generation of entertainment, we’re supporting the next generation of creators and giving them the tools and the integrated virtual world platform they need to make great content. There is a litany of opportunities that await us in the virtual world, and we want to be on the cutting edge of it with YAHAHA. To do this, it’s imperative we continue investing in our team and in the community that got us to where we are right now.” The big questions will be whether those noodling around in the early version will stay with Yahaha as monetization comes in, whether that monetization works, whether games are entertaining enough to get players to engage, and of course whether metaverse establishes itself as a permanent fixture in the market, rather than a passing stage, as gamers progress to the next level.

Microsoft brings helicopters, gliders and the Spruce Goose to its Flight Simulator • ZebethMedia

Microsoft is celebrating the 40th anniversary of the venerable Flight Simulator series today with the launch of the aptly named Microsoft Flight Simulator 40th Anniversary update. As the company had teased before, this update to the sim will introduce helicopters and gliders, as well as a few classic aircraft. Gliders and helicopters aren’t new to Flight Simulator, but when Microsoft and Asobo resurrected the sim back in 2020, they were still missing from the game. In total, the update includes 12 new planes (2 helicopters, 2 gliders and 8 fixed-wing aircraft). The highlights here are what Microsoft and Asobo call their first “true-to-life” airliner in the base game — an Airbus 310-300 — and the Spruce Goose, the largest seaplane and wooden aircraft ever built. Other new aircraft include classics like the 1903 Wright Flyer, the 1915 Curtiss JN-4 Jenny, the 1927 Ryan NYP Spirit of St. Louis, the 1935 Douglas DC-3, the 1937 Grumman G-21 Goose and the 1947 Havilland DHC-2 Beaver. Image Credits: Microsoft To celebrate the launch, Microsoft and the sim’s developer Asobo Studio invited a small group of flight sim influencers and tech media to the Evergreen Aviation and Space Museum in McMinnville, Oregon. Why? It’s where the Spruce Goose is on display, so what better place to celebrate the launch of this update (and the Spruce Goose just celebrated the 75th anniversary of its flight on November 2). During the event, I got a bit of hands-on time with the new planes. Just like in real life, flying helicopters is going to be hard — hard enough that Microsoft added quite a few new assistance settings that simplify the experience. Without those — and especially if you are playing on a gamepad, for example — you will crash. Repeatedly. Once you get the hang of it, flying those helicopters (a large Bell and the small two-seat Guimbal Cabri G2 trainer) is good fun, though, and allows you to fly slow and low across Microsoft’s impressive virtual model of the earth. Image Credits: Microsoft To enable helicopters and their ability to beat air into submission, the Asobo team had to build a new physics engine in the sim and while the fluid dynamics simulation for modeling planes in the game runs 100 times per second, for example, the rotors of the helicopters are modeled at 1,000 times per second to achieve a higher degree of realism. And to really showcase that, you can now also visualize exactly how the air flows over and around these helicopters (and planes). The team says that this new physics system realistically models ground effect and also allows you to recreate emergencies and set the helicopter down using autorotation when you turn off the engine, for example. Image Credits: Microsoft As you would expect, Gliders are a much more docile affair. Here, too, Microsoft added some new visualization to the sim to let you see up- and downdrafts around you. The physics engine for this takes into account everything from the outside temperature, the angle of the sun, the material the sunlight is reflecting from and more — but the Asobo team also admits that it still cheats quite a bit here to do this within the computational limits of the engine. The weather engine doesn’t create clouds from first principle, for example, and so when creating the system for the thermals, the team had to work from where the clouds are and then work backwards from there. “If we want the perfect simulation, then we would need a quantum computer 100 years from now,” Asobo’s Martial Bossard explained. “Sometimes you have to make some clever choices that help us to create the same kind of behavior with a low computational cost.” Still, as Bossard told me, the idea here was to create an engine that allows real-life glider pilots to find thermals exactly where they would expect them to be. Otherwise, there are very few surprises here. If you’re looking for a more relaxed flying experience, gliders are definitely the way to go. One nifty feature is that you get the option between winch launches — which are standard in Europe, for example — or using a tow plane, which is the usual way to launch a glider in most of the U.S. And those animations are nice, too, including your friendly launch helper running next to the glider to help keep you steady as you start your takeoff roll. And you can launch a glider from anywhere, too, whether that’s JFK or your local glider field. Interestingly, while there are no new tutorials in the game to teach you how to fly helicopters  — because the team argues that with all of the assistance functions turned on, it’s actually pretty easy to fly them — there are about half a dozen glider tutorials in the game now. I’m sure we’ll see some helicopter tutorials pop up in future releases, though. Image Credits: Microsoft As for the regular planes, I tend to stick to the smaller general aviation planes that are more like what I fly in real life, but the highlight here are the A310-100 and the Spruce Goose, Howard Hughes’ giant flying boat (the H-4 Hercules) hat was a bit of a disaster and never flew more than 27 seconds. The A310 is modeled in exquisite detail, with virtually every switch doing what it would do on a real plane, including the flight computer. Typically, a model like this would be a paid third-party DLC, so it’s nice to see something of this quality now becoming part of the base game. Image Credits: Microsoft The Spruce Goose feels a bit like a novelty, but it’s also a beautiful model and surprisingly easy to fly. It’s a beast, no doubt, with its massive engines and weight. You’re not going to do steep turns with it anytime soon, but it’s a fun diversion. And there is more. Microsoft and Asobo also brought back four classic airports, including Chicago’s Meigs

Gaming company Kabam lays off 7% of its workforce to better align with goals • ZebethMedia

Kabam, the gaming company that has developed mobile games in partnership with entertainment brands including Disney, Marvel and Universal, has laid off about 7% — around 35 people — of its workforce, ZebethMedia has learned from sources and confirmed with the company over email. The Vancouver-based company informed the affected employees about the move earlier this week, a person familiar with the development said. “As we at Kabam reviewed our strategic priorities, we made the decision to adjust our resourcing structure in alignment with our goals. This means that while we will continue to hire in key areas in the year ahead, unfortunately, we are reducing our workforce by approximately 7%. For those we are parting ways with, we are grateful to [sic] their contributions to our success, and are supporting them through this challenging transition,” a Kabam spokesperson said in a statement emailed to ZebethMedia. The company has a headcount of over 500 employees. Kabam has a catalog of mobile games generating hundreds of millions of downloads in total, including Marvel Contest of Champions, Disney Mirrorverse, Shop Titans, Transformers: Forged to Fight, Mini Guns, Fast & Furious 6: The Game, Fast & Furious: Legacy and Blastron. The company also has studios and offices in Montreal, San Francisco, Charlottetown, Austin and Los Angeles — alongside its headquarters in Vancouver. Founded in 2006, the gaming company ran as a startup until 2016 when it was acquired by South Korea’s Netmarble Games for a reported $700 million to $800 million. In March this year, Netmarble’s North American operations merged with Kabam. It aimed to bring many Netmarble game titles to western markets. Kabam is one of many companies in the tech world that have cut its workforce during this economic slowdown. In the last few days, the impact of the ongoing financial crunch was largely seen through massive layoffs announced by Twitter and Meta. Companies including Netflix, Spotify and Tencent also let some of their staff go. Similarly, Indian startups such as Unacademy, Byju’s and Ola have also laid off hundreds and thousands of employees to reduce the burden of limited funding and investments.

Nintendo and DeNA to establish joint venture company called Nintendo Systems • ZebethMedia

Nintendo and mobile games company DeNA are forming a joint venture company called Nintendo Systems that will aim to enhance the digitization of Nintendo’s business. The joint venture builds on Nintendo’s years-long partnership with DeNA that began in 2015. The two have since worked together to develop a handful of titles, including Super Mario Run, Fire Emblem Heroes, Animal Crossing: Pocket Camp, Mario Kart Tour, Miitomo and Pokémon Masters. Nintendo announced the news alongside its latest financial results. The company notes that since the amount of capital of the joint venture company is greater than 10% of that of Nintendo, it will become a Specified Subsidiary of Nintendo. The new company will begin operations in April 2023 and will be based on Tokyo. Nintendo’s Tetsuya Sasaki will be the president of the new company. Nintendo says the objective of the new venture company is to focus on research and development to strengthen the digitization of Nintendo’s business and create “value-added services to further reinforce Nintendo’s relationship with customers.” “With the integrated hardware-software model at the core of its business, Nintendo also strives to provide enhanced experience and service outside of its dedicated gaming system,” the company said in a statement. “In order to provide this experience in a holistic manner, Nintendo is working to maintain and expand its relationship with consumers primarily through Nintendo Account.” Nintendo, together with DeNA, has made significant strides in the mobile gaming space. Of the six titles that two have produced together, Fire Emblem Heroes has been the most successful, as it hit $1 billion in global player spending in June, according to data from Sensor Tower. As a result, Fire Emblem Heroes was Nintendo’s first mobile game to surpass $1 billion in spending. The data also shows that Mario Kart Tour brought in $293 million, while Animal Crossing brought in $287.6 million. The company says the establishment of the joint venture company is subject to all necessary approvals, including those required by the competition laws of involved countries. Nintendo also notes that the news will have no effect on its results for this fiscal year, and that the effects it will have on future results will be incorporated into financial forecasts from the next term onwards.

Roblox stock drops on widening losses in Q3, but other growth metrics remain strong • ZebethMedia

One of the big players in the “metaverse” space, gaming platform Roblox, saw its stock tumble by over 15% in pre-market trading on Wednesday after reporting a wider-than-anticipated loss in its third-quarter earnings. The company, which caters to a younger demographic with its virtual world gaming platform, reported a loss of $297.8 million, or 50 cents per share, when analysts had forecast a loss of 32 cents a share. Roblox revenue grew 2% year-over-year to $517.7 million in the quarter, but Wall Street tends to focus on another figure called bookings, which represents both the revenue plus the change in deferred revenue during the period and other non-cash adjustments. As the company has previously explained, bookings are equal to the amount of virtual currency, which Roblox calls “Robux,” that’s purchased by its users during a time period — something that Roblox says provides a timelier indication of trends. In Q3, Roblox bookings were up by 10% year-over-year to $701.7 million, above the $686 million analysts expected. Daily active users were also up by 24% from the year-ago period to reach 58.8 million, but average bookings per daily active user fell 11% to $11.94. While Roblox beat estimates on several key metrics, the stock dropped as Wall Street reacted to Roblox’s larger-than-anticipated loss. Despite this setback, many remain more bullish on Roblox in the long-term as a key metaverse player — perhaps even more so than Meta, which is spending billions trying to catch up. There are signs that Roblox is managing to grow and retain its users, even as many among its user base are now aging up. For instance, the company in Q3 noted its fastest year-over-year growth in daily active users is among those ages 17 to 24 — a cohort that grew by 41%. Though there aren’t as many users in that demographic, they monetize better than Roblox’s younger players and now represent 22% of Roblox’s daily active users. More broadly, Roblox’s daily active users over the age of 13 grew by 34% year-over-year and accounted for 54% of all daily active users, the company said. This is up from 38.7% in Q3 2019. In addition, the gaming company said that core markets like the U.S. and Canada are above peak-Covid levels — a time when Roblox, like many other gaming and entertainment companies, had seen sizable growth and activity as pandemic lockdowns kept people at home with nothing to do. Meanwhile, Western Europe and East Asia are now Roblox’s fastest-growing markets, which also monetize better than some others outside the U.S., like Latin America, Eastern Europe, and Southeast Asia. Though it may be hard for Roblox to reach pandemic levels of engagement in the post-Covid era, the company said its September 2022 engagement was nearly 20% higher than in September 2019, pre-Covid. This figure is down 6% from the Covid-impacted time of September 2020, however, but suggests growth has normalized. Monetization (bookings divided by engagement hours) was in line with peak Covid time frames, and 12% higher than in September 2019. Roblox also touted its developer traction, noting there are now 1520 developers building for Roblox who had achieved over 100,000 hours of engagement, up 54% year-over-year as of September 2022. And there were 532 developers that had generated over a million hours of engagement, up 47%. The top 1,000 experiences at the end of the quarter accounted for 85% of Robux earnings and engagement hours, compared with 90% a year ago. “We are delivering strong growth across our core operating metrics, powered by a growing developer community creating high- quality experiences that appeal to a broad, global audience,” said David Baszucki, Chief Executive Officer of Roblox, in a statement. “We are creating innovative technologies to enable deeper forms of immersion, communication and expression to further enhance the value of the platform.” The company said it will continue to invest in its growth including by hiring, expanding the platform, building new tools and experiences, in international growth, and in its older users. Roblox stock is trading at $34.98 as of the time of writing, down by 10.83%.

Microsoft’s $68.7BN play for Activision heads for in-depth EU antitrust probe too • ZebethMedia

The $68.7 billion gaming mega-merger between Microsoft and Activision Blizzard is facing in-depth competition scrutiny in the European Union. EU regulators had been taking a preliminary look at the proposed deal, after the transaction was notified to the bloc’s regulators at the end of September. But today the Commission confirmed it will open a deeper probe — following in the footsteps of the UK’s antitrust authority which announced its own in-depth investigation back in September. In a statement today, the Commission said it’s concerned the proposed acquisition could reduce competition in the markets for the distribution of console and PC video games and also for PC operating systems — with the risk of driving up prices and reducing quality and innovation for consumers. “The Commission’s preliminary investigation shows that the transaction may significantly reduce competition on the markets for the distribution of console and PC video games, including multi-game subscription services and/or cloud game streaming services, and for PC operating systems,” it wrote. “The preliminary investigation suggests that Microsoft may have the ability, as well as a potential economic incentive, to engage in foreclosure strategies vis-à-vis Microsoft’s rival distributors of console video games, such as preventing these companies from distributing Activision Blizzard’s console video games on consoles or degrading the terms and conditions for their use of or access to these video games.” “When it comes to multi-game subscription services and/or cloud game streaming services in particular, the Commission is concerned that, by acquiring Activision Blizzard, Microsoft may foreclose access, to the detriment of its rival distributors of console and PC video games that offer such services, to its own PC and console video games, which are key for the provision of the nascent services of multi-game subscription and cloud game streaming,” it added, noting that it is particularly concerned of the risk of foreclosure affecting “high-profile and highly successful games” (so-called ‘AAA’ titles) — such as Activision Blizzard’s ‘Call of Duty’ franchise. As regards PC operating systems — an area where Microsoft’s Windows platform dominates — the Commission has concerns that the deal could reduce competition on the PC OS market by reducing the ability of rival providers to compete with Windows if Activision Blizzard’s games get combined with Microsoft’s distribution of games via cloud game streaming to Windows. “This would discourage users to buy non-Windows PCs,” it suggested, adding: “The preliminary investigation suggests that Microsoft may have the ability, as well as a potential economic incentive, to engage in such conduct vis-à-vis rival providers of PC operating systems.” Commenting in a statement, Margrethe Vestager, Commission EVP in charge of competition policy, added: “Video games attract billions of users all over the world and are among the fastest growing forms of digital entertainment. For years, Microsoft has been a major player across the gaming supply chain. It is acquiring Activision Blizzard, a highly successful producer of gaming content. We must ensure that opportunities remain for future and existing distributors of PC and console video games, as well as for rival suppliers of PC operating systems. The point is to ensure that the gaming ecosystem remains vibrant to the benefit of users in a sector that is evolving at a fast pace. Our in-depth investigation will assess how the deal affects the gaming supply chain.” The Commission now has 90 working days — until March 23, 2023 — to take a decision on whether to clear or block the acquisition. Alternatively, the EU could agree to a conditional approval by accepting commitments from the parties which have the opportunity to propose and negotiate remedies to address competition concerns during the merger review process. Such a conditional approval might include an agreement to sell part of the combined business or licence technologies to other market players, for example. Microsoft has previously said it is committed to working with international competition regulators to allay concerns — but it remains to be seen what the pair might propose to get the deal waived through. Given the scale of the mega-merger some form of conditional clearance seems the most likely outcome for Microsoft-Activision in the region — although the Commission’s PR contains its standard disclaimer that “the opening of an in-depth inquiry does not prejudge the outcome of the investigation”.

Netflix launches a new interactive trivia experience, ‘Triviaverse’ • ZebethMedia

Today, Netflix is launching a new interactive game called “Triviaverse” that allows subscribers to test their knowledge and compete against an all-knowing “Trivia master” using their TV remote. In the game, players are challenged to answer questions as quickly as they can before time runs out and beat high scores to earn badges. “Triviaverse” is today launching globally on the streaming service and is available in nine languages, including English, Spanish (LatAm), Spanish (Spain), Portuguese (Brazil), French, German, Italian, Korean and Japanese. The gameplay itself is fairly simple. Players must correctly answer as many questions as possible within a limited time frame by pressing the arrow keys on their remote. Questions will span various categories like history, science and pop culture. They’ll increase in difficulty as you make it through the rounds. When players reach certain milestones, they earn badges, beginning with “Bird Brain,” then “Preschool Graduate,” “Lucky Guesser,” “Shockingly Average,” “Mere Mortal,” “PhD Dropout,” “Super Nerd,” “Potential Genius,” “Certified Genius” and “Triviaverse God” — the last and most epic-sounding title that players can receive. There are two ways to play “Triviaverse” — one-player mode, which has three rounds of trivia; or two-player mode, which is divided into two rounds per person. “Whether it’s challenging a personal best to beat 4,000 points or dueling your friends to reach 10,000 points, we hope you learn something new and have fun!”  Netflix Director of Product Management, Rick Sanchez, wrote in an announcement posted on the company’s blog. Image Credits: Netflix While Netflix has experimented with interactive storytelling before, not all of those past efforts have been designed to be played like a game. In 2017, the company debuted interactive stories for subscribers to enjoy, like “Cat Burglar” and “Black Mirror: Bandersnatch,” among others. It also offered a “Triviaverse” precursor with its interactive game “Trivia Quest,” which had a different format involving daily episodes during the month of April 2022. The new game, however, has a more stripped-down format, as if Netflix wants to test whether or not subscribers would be interested in just using its service as a game-playing platform, instead of for interactive features that also tell stories. The new trivia game comes one year after Netflix began investing in gaming, which the company has said would eventually expand beyond mobile games. For instance, following Netflix’s promising Q3 earnings results, VP of Gaming Mike Verdu revealed at ZebethMedia Disrupt that the company is exploring cloud gaming and was opening a new gaming studio in Southern California. Netflix recently acquired the gaming studio, Spry Fox, which joined Netflix’s five in-house games studios.

Unity and IronSource’s $4.4B merger is now complete • ZebethMedia

Unity‘s proposed merger with IronSource has formally concluded, with the two companies coming together to create an end-to-end platform for developers to build and monetize games. Unity, which is best known for its eponymous general purpose game engine, and IronSource, an adtech company that serves developers with tools for integrating ads, cross-channel marketing, and more, first announced plans to join forces in a $4.4 billion all-stock deal back in July. The two publicly-traded companies had seen their stocks fall by around 75% and 50% respectively through 2022, and their decision to merge was driven somewhat by the economic downturn, but also — as at least one analyst pointed out — by Apple’s App Tracking Transparency (ATT) framework which rolled out last year. Both Unity and IronSource rely on developers buying advertising to garner new users, and ATT created friction on that front, so by pooling their collective resources, this goes some way toward addressing their respective declines. “The driving force behind this industry-changing merger is to create more value for developers across the entire development journey,” IronSource CEO Tomer Bar-Zeev said in a press release. “We are very excited about the road ahead as we begin integrating our product portfolios more deeply and strengthening the feedback loop between creating great games and growing them into successful businesses. In doing so, we’ll be able to create a world where more creators are more successful than ever before.” It’s worth noting that in the intervening weeks since Unity and IronSource first announced their plans, AppLovin entered the conversation in a big way when it tabled a $20 billion offer for Unity, on the condition that Unity ended plans to merge with AppLovin’s rival, IronSource. After consideration, Unity ultimately rejected that offer, with its board noting that AppLovin’s offer wasn’t a “superior proposal.”

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