Business news Nacon vs Frogwares, Genshin Impact, Valheim: The week’s business news Sales figures, studio buyouts, financial reports … If these topics are what interests you, you’ve come to the right place. Each week we will come back to the video game business news in this section. On the agenda for this issue: layoffs at Hardsuit Labs, the remakes planned by Square Enix, or the conflict between Genshin Impact’s earnings.
Without the Bloodlines 2 project, Hardsuit Labs would have laid off employees
On February 23, Paradox Interactive announced that Hardsuit Labs had been expropriated from the development of Vampire: The Masquerade – Bloodlines 2. Two years after the announcement of the game, the production of the title is therefore entrusted to another team whose identity number is not known. In the special press release, Paradox pointed out that ambitions surrounding the game had made it necessary to switch studios. Unfortunately, the consequences for the studio would be more severe than expected, as some former employees said layoffs followed. Anna Webester, the storyteller, said for her part that the entire storytelling team was asked to pack their bags along with other developers. As a reminder, several developers left the studio in August and October, and the title is now expected in 2022.
Genshin Impact has reportedly grossed over $ 870 million for cell phones
Genshin Impact was launched on September 28, 2020 and is a huge success. The title can be played on a large number of media with progress control and is in the form of a free-to-play. Many gamblers admit that they don’t encourage gamblers to spend money. Thanks to this balance, Genshin Impact has been able to attract many players, some of whom have their hands in their wallets. Four days after its release, the title had generated $ 17 million, 60 in a week and 245 in a month. Genshin Impact is now approaching $ 900 million, with an estimated $ 875 million being generated for mobile devices, according to data from the sensor tower. On iOS and Android, the title is now the third most cash-generating game, behind the unmistakable honor of Kings and PUBG Mobile. In particular, Sensor Tower mentions $ 175 million generated monthly on mobile devices thanks to microtransactions. The leading market for the title is none other than China (generated USD 253 million), followed by Japan (USD 237 million) and the USA (USD 162 million).
Zynga offers itself to the developer of Torchlight III
Echtra Games, the studio behind Torchlight III, was founded in 2016 and is now owned by Zynga, the company behind many social games such as FarmVille, Chess with Friends and War of the Fallen. Under the direction of Frank Gibeau, the company announced the acquisition without disclosing the transaction amount. What we do know, however, is that there are no layoffs planned and that Echtra Games will be working with NaturalMotion on the realization of a multi-platform role-playing game. If the future of Torchlight III, which gave up its free-to-play aspect during development, is not mentioned, Frank Gibeau still commented on the news of the acquisition: “Max (Schaefer) and his team at Echtra Games have some created by the most legendary game licenses ever created and they are experts in action RPGs as well as cross-platform development. I am delighted to welcome Echtra Games to the Zynga family. This acquisition will be a key part of the growth of our legendary Licenses play and brands, from mobile devices to PCs to consoles, while helping to further expand Zynga’s exploitable market. “
OVH founder submits takeover bid for Blade
According to our colleagues at Nextinpact, Blade, the company behind the cloud computing shadow service, is not doing very well. Blade is currently under the protection of the Commercial Court and is actively seeking a buyer. A victim of its success and international engagement, Blade would have run out of funds to continue its development while the new offerings previously pre-ordered await delivery. In addition, the company would have missed its round table last December and therefore would not have received a new fundraising campaign. The search for a buyer was confirmed a few days ago by Victor Grimoin, Creative Manager, who also explains that the situation will be resolved live very soon. The terms of the acquisition have yet to be determined, but there is already a candidate in the person of Octave Klaba, CEO and founder of OVH. The latter announced on Twitter that he would submit a takeover offer with his investment fund Jezby Ventures to develop a “European alternative to Office365 / G-Suite”. According to him, the necessary sum would be between $ 30 million and $ 35 million. “Jezby has been working on this file for two months,” he adds. At the moment this is just a letter of intent and no formal process has been initiated.
The conflict between Nacon and Frogwares begins again
On March 1st, Frogwares, developer of The Sinking City, released a 9-minute video accusing Nacon of hacking the game and changing the source code to get the game out on Steam on February 26th, and not all of them Having paid the amounts due: “To be clear, it is a hack, and when a hack is aimed at stealing a product and generating money, we speak of piracy or counterfeiting.” The conflict has been going on for several months since an October 2020 decision by the Paris Court of Appeal ruled in favor of Nacon, which found the breach of contract between the two parties to be unlawful. The final decision regarding Frogwares’ commitment to deliver a Steam version has to be made soon, but the studio apparently wanted to state its position publicly while filing a complaint on Steam that also withdrew the title of its shop. Nacon officially responded on Wednesday March 3rd with a long right to reply. The publisher states that it is legally the only legitimate distributor of the game on Steam, that all amounts due have been paid, and that Frogwares has been preventing the game from being released on Steam for months. “Today Frogwares has no reason not to make the game Nacon available on Steam, except in bad faith,” Nacon said in his statement.
My.Games presents a very positive financial report
My.Games, publisher of Conquerors Blade, Dino Squad or Warface: Breakout, has just published its results for the 2020 calendar year, which is marked by the publication of nine new titles. A report that has been presented with a smile since My.Games announced that it will exceed its estimates with growth of 30% over a year to $ 562 million. For the French market, the publisher saw a 46% increase in PC game sales, while Conqueror’s Blade achieved a 155% increase in sales. Mobile spend also increased 34%, while advertising revenue increased 61%. The majority of the 770 million claimed users are in the USA, Germany and Japan. Vassily Magouryan, CEO, believes My.Games has managed to quickly start its growth based on its own ecosystem of games and services. However, mobile remains the main source of income for the company, accounting for 73% of total revenue. Finally, note the performance of some titles: Warface now has 109 million players, including 23 on Switch, while Grand Hotal Mania has been downloaded 7.7 million times and War Robots has attracted 184 million players.
Briefly in the industry news
Valheim’s success continues to grow, with 5 million copies sold in a month. Seth Schiesel, former New York Times and Protocol reporter, has been hired by Microsoft’s Xbox team as Director of Executive Communications. Microsoft’s acquisition of Zenimax was approved by the Security & Exchange Commissions (USA). The decision of the European Union is still awaited. Motorsport Games recently offered 397Studio, specialist in vehicle simulation (NASCAR / eSport). New games, especially based on the 24 Hours of Le Mans, are expected on PC and consoles. Blasphemous has been released to over a million players. Take-Two CEO Strauss Zelnick believes the public is ready to accept the rise in game prices The Souls-Like Mortal Shell has sold more than 500,000 copies worldwide.
More business news for the week of March 1st:
By MalloDelic, journalist jeuxvideo.com MP