Improbable Sells Gaming Services Subsidiary to Keywords Studios
Improbable, a metaverse startup backed by SoftBank and Andreessen Horowitz (a16z), has sold its gaming services subsidiary, MPG, to Irish video game company Keywords Studios for nearly $100 million. This sale represents the first exit for Improbable’s venture arm and is part of the company’s divestment of non-core activities. MPG, which was acquired by Improbable in 2019 for $38 million, has 360 staff in 34 countries and serves clients such as Activision Blizzard, Bethesda, and Epic.
Improbable’s Focus on Metaverse Ambitions
With the sale of MPG, Improbable will now focus on scaling up its metaverse ambitions. The company plans to shift from web2-based projects working with sports franchises to web3 community initiatives with BoredElon, Forgotten Runes, and Yuga Labs’ Otherside metaverse platform.
Metaverse Developments and 2024 Outlook
In June, Improbable launched its distributed computing platform, M2 Network, and MML Stack to support an ecosystem of interoperable metaverses. The company also established The Metaverse Society in May as a think tank exploring the societal and economic impact of the metaverse.
Looking ahead, Improbable predicts continued metaverse development in both web2 and web3 worlds as the lines between them blur. VR headsets are expected to drive growth in spatial computing, while gaming companies integrate new experiences and web3 games gain traction in their portfolios.
The Growth Potential of the Metaverse
Improbable’s founder and CEO Herman Narula believes that the metaverse is poised for significant growth in 2024. He anticipates that headsets like Apple’s Vision Pro and the success of Meta Quest 3 will fuel demand for immersive metaverse experiences. Additionally, gaming companies are expected to incorporate metaversal elements into their offerings, creating new opportunities for brand activation.
Narula also suggests that consolidation in the gaming and web3 sectors will strengthen the startup ecosystem, with companies pooling resources and expertise to develop metaverse applications.
Improbable’s Successful Pivot to Metaverse Experiences
Last year, Improbable significantly reduced its losses after pivoting to focus on metaverse experiences. The company had previously raised $150 million in April 2022 to build its interoperable metaverse network.
Hot Take: Improbable Sells MPG to Keywords Studios, Focusing on Metaverse Ambitions
Improbable’s sale of its gaming services subsidiary, MPG, to Keywords Studios for nearly $100 million marks a significant step in the company’s strategic shift towards expanding its metaverse ambitions. By divesting non-core activities and redirecting its focus, Improbable aims to scale up its presence in the metaverse landscape. With the launch of its distributed computing platform and think tank dedicated to exploring the societal impact of the metaverse, Improbable is positioning itself at the forefront of this emerging industry. As VR headsets gain popularity and gaming companies integrate metaversal elements, Improbable anticipates substantial growth in 2024. This move exemplifies Improbable’s commitment to capitalizing on the vast potential of the metaverse.
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