IN THE LOOP with kapital k // W29 of 2023
The only gaming newsletter you need. I curate and aggregate content from across web2 & web3 to deliver it straight to your inbox.
Week 29 of 2023. Here are the top five headlines and fundraising announcements + a collection of content from independent creators that you missed this week!
FTC & MSFT & ATVI // FTC Withdraws From Activision Blizzard Case — link
Summary: The Federal Trade Commission (FTC) has filed an administrative challenge against Microsoft's acquisition of Activision Blizzard, as part of their two-pronged attack. The injunction was the first part and it got denied so now the FTC withdrew their second part.
Analysis: These are the final stretches of the situation. The FTC is effectively laying down their weapons. MSFT and ATVI also worked out a deal to extend the deal’s deadline, which gives them time to sort out issues with the CMA regulatory body across the pond. Once this deal finally wraps up, it will be the largest gaming-related deal ever. Obviously this isn’t the only M&A deal that happened this year (Scopely, Zynga, etc.) but this I believe will spark another onset of M&A frenzy.
Drake Star // Q2 Gaming M&A Deal & Fundraising Activity — link
Summary: In Q2 2023, the gaming industry witnessed significant funding, mergers, and acquisitions, with a total value of $6.2 billion, as reported by Drake Star. This surge in investment activity reflects the growing interest of gaming venture capital firms and other investors in the gaming sector, highlighting its potential for lucrative opportunities.
Analysis: The substantial funding, mergers, and acquisitions in the gaming industry during Q2 2023 indicate strong investor confidence in the sector's future growth. Gaming venture capital firms should take note of this trend and carefully assess potential investment opportunities in promising gaming companies and startups. The industry's continued expansion and the consolidation of major players could lead to enhanced technological innovation, driving further developments in gaming experiences, platforms, and technologies. The interesting note is that the industry is exhibiting this barbell-like distribution of deal activity: early-stage and late-stage. Middling companies are sure to have issue raising growth capital so perhaps we’ll see more rollups in the near future.
Roblox //Enabling Subscriptions For Developers — link
Summary: Roblox, the popular metaverse platform, is introducing a new subscription program that allows developers to offer exclusive content and perks to their players for a monthly fee. This move aims to empower developers with additional monetization options and foster a more sustainable ecosystem within the Roblox metaverse.
Analysis: The introduction of the subscription program by Roblox is a significant step towards providing developers with diversified revenue streams beyond the traditional in-game purchases. Gaming venture capital firms should take note of this development as it creates opportunities for game developers on the platform to generate more stable and predictable income. Investing in Roblox developers who embrace this subscription model could lead to long-term profitability and growth. Additionally, this move by Roblox reflects the platform's commitment to nurturing its developer community, fostering innovation, and ensuring a thriving metaverse ecosystem. As Roblox continues to evolve as a leading metaverse platform, gaming VC firms should monitor and support developers who leverage this subscription program to build engaging and sustainable experiences for players.
TikTok // Gaming-Related Video Hit 3T Views in 2022 — link
Summary: TikTok, the popular short-form video platform, witnessed a massive surge in gaming-related content, garnering over three trillion views in 2022. Gaming content creators and developers have embraced TikTok as a platform to showcase game highlights, tips, and creative gaming content, attracting a significant and engaged audience.
Analysis: The remarkable three trillion views of gaming-related content on TikTok highlight the platform's growing influence in the gaming industry. Gaming venture capital firms should take note of this trend as it signifies the potential for gaming companies to reach and connect with a massive global audience through TikTok's viral and engaging format. Investing in game developers with a strong presence on TikTok could lead to enhanced brand exposure, increased player engagement, and ultimately, higher game downloads and revenue. Furthermore, supporting gaming influencers and content creators on TikTok could open up valuable marketing and promotional opportunities for gaming ventures. As TikTok's gaming community continues to grow, gaming VC firms should actively explore partnerships and collaborations with TikTok creators to capitalize on the platform's widespread reach and impact.
Candy Crush // Mobile Masterworks: Candy Crush — link
Summary: The article discusses the enduring success and impact of the mobile game "Candy Crush Saga." Developed by King, the game has become a mobile gaming phenomenon, with millions of players worldwide, generating significant revenue and cultural impact. The article delves into the game's design, monetization strategy, and its ability to sustain long-term engagement.
Analysis: "Candy Crush Saga" serves as a prime example of a mobile gaming masterpiece that has stood the test of time. Its addictive gameplay, appealing visuals, and well-executed free-to-play model have contributed to its enduring popularity. The game's continuous updates, events, and in-game promotions keep players engaged and drive monetization through in-app purchases. For gaming venture capital firms, "Candy Crush Saga" exemplifies the potential for long-term success in mobile gaming when combining solid game design, effective monetization, and consistent content updates. Investing in mobile game developers that prioritize player engagement and content refreshment could lead to stable and lucrative returns.
Don’t miss out on next week’s IN THE LOOP w/ kapital k.
@SKILLLEVEL7 (Mighty Bear Games) // The Bored Artists Agency — link
@Degentraland // In-Game Trading Economies — link
@Obviously_Obv // Breakdown of $PRIME vs $ILV — link
@Jonmoore202 // Barbell Investing Strategy — link
@KieferZang // Economic GamePlay — link
@LatticeXYZ // Autonomous Worlds — link
@0xNaylor // Integrating Web3 While Building a Game — link
thecoreloop // Wassie’s Alpha Gaming Metaverse Expedition (WAGME) — link
Mobile Dev Memo // Netflix Q2 Earnings — link
Mobile Dev Memo // Gen AI For Ad Creative: 5 Value Milestones — link
The Verge // The Birth of id Software — link
GameDev Reports // Famitsu: Japanese Gaming Market H1 2023 — link
Niko Partners // Valorant Leads PC & Esports Revenue Growth In China — link
Bitkraft // The State of Web3 Game Developer Tooling — link
Deconstructor of Fun // Lessons Learned From My Startup Journey — link
Naavik // The Future of Player Betting
Naavik // Google Play vs. App Store Blockchain Policies
Deconstructor of Fun // TWiG 241: Web3 Like a Phoenix, FIFA’s Rebrand
Deconstructor of Fun // No Bull w/ Joseph Kim
Game Developer // Iterative Prototyping and Tabletop Transposition
The Token Takeover // Creating Interoperability Standards
The Token Takeover // Leveling up Web3 Gaming DAOs
The AIAS Game Maker’s Notebook // Creating More Star Wars Music
GameIndustry.biz // Microcast: MS-ABK Nears Completion
Navigating the Metaverse // The Origins of the Metaverse
Hexacore // $3.5M // Web3 // Infra — Publisher for web3 and hypercasual games.
Investors: Scalo Technologies, Xsolla, Estoty
23 Studios // $2.0M // Web2 // Infra — Digital game localization and development company.
Investors: Screen Australia
Futureverse // $54.0M // Web3 // Infra — Comprehensive technology platform empowers developers to create the worlds they imagine.
Investors: 10T Holdings, Ripple Labs
GGWP // $10.0M // Web2 // Infra — AI Moderation Platform
Investors: Samsung Ventures, SK Telecom Ventures
Eyeball Games // $1.5M // Web3 // Casual — Mobile game developer of Eyeball Pool
Investors: White Star Capital, Polygon Ventures, Immutable, Ocular, Great South Gate Ventures
Karat Financials // $70.0M // Web2 // Infra — Providing financial services for content creators
Investors: SignalFire, Union Square Ventures, CRV, GGV, Commerce Ventures, Dreamers VC, Nick DiGiovanni, MANA Talent Group, Ludwig Ahgren, Wendover Productions, Pat Flynn, Biz Stone, Micheal Ovitz, Steven Chen
Kahoot // $1.7B // Web2 // Education — Built a popular platform for users to create, share and play education-focused “games”, played by billions of students and adults over the years
Investors: Goldman Sachs Assets Management, General Atlantic, LEGO Group, Glitrafjord
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h/t to thecoreloop contributors: @0xkapital_k @chng_raymond @cloudxgmf @wassiecapital @iandaog @playtern
@friandoteth @0xconglomerate @itsbambam