Improbable Sells Gaming Venture to Keywords
Metaverse company Improbable has sold its gaming venture, The Multiplayer Group (MPG), to Keywords Studios for £76.5 million ($97.1 million). This unexpected deal comes at a time when the metaverse and web3 sectors are facing challenges.
Keywords Studios is known for developing games for third-party developers, and this acquisition strengthens its position in the gaming industry.
However, Keywords Studios has experienced financial shifts recently. Despite allocating €91.9 million ($100 million) for new takeovers, the company’s shares have dropped by approximately 49% year-to-date. This spending spree has resulted in a transition from a net cash position to a net debt of €11.4 million as of June 30, 2023.
Improbable’s “Venture Builder” Strategy
Improbable’s co-founder and CEO, Herman Narula, stated that the sale aligns with the company’s “venture builder” strategy. Narula believes that understanding multiplayer and metaverses can help them identify opportunities for future success.
This strategy involves investing in or acquiring gaming and metaverse-related teams that have potential for expansion or spin-offs.
The Challenges Facing the Web3 Gaming Sector
The sale of MPG by Improbable reflects a broader trend impacting the metaverse and web3 gaming sector. A recent study shows that 75.5% of the 2,817 web3 games launched between 2018 and 2023 have not succeeded.
This statistic highlights the volatile nature of the emerging web3 gaming market and the challenges faced by companies operating in this space.
The Future of Gaming and Virtual Worlds
The metaverse sector is still evolving, and the strategies of companies like Improbable and Keywords Studios could shape the future of gaming and virtual world experiences.
The potential of the metaverse and decentralized web is vast, but it will take time for the best use cases and products associated with these industries to fully develop.
Hot Take: The Evolving Landscape of the Metaverse
The sale of Improbable’s gaming venture to Keywords Studios highlights the changing dynamics within the metaverse and web3 sectors. While there are challenges and a high failure rate for web3 games, companies like Improbable and Keywords Studios are actively shaping the future by investing in gaming and metaverse-related teams. The metaverse sector is still in its early stages, but its potential impact on gaming and virtual world experiences cannot be underestimated. As companies navigate this evolving landscape, it will be interesting to see how they adapt and innovate to create immersive and successful metaverse experiences.
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