Video game companies are increasing their financial bets on mobile games as pandemic restrictions loosen and people ditch their PC and TV screens to get out.
Publishers such as Electronic Arts Inc., Take-Two Interactive Software Inc. and Zynga Inc. are taking over mobile game studios and creating new mobile titles, some of which are adaptations of popular games already playable on consoles and personal computers. .
“Before, you could avoid [mobile] if you wanted to make certain games, ”said Nicolo Laurent, managing director of“ League of Legends ”developer Riot Games, which is part of Tencent Holdings Ltd. “Now the platform is relevant for any kind of game. So it’s a big deal for everyone.
Game makers are striving to expand their user base by reaching billions of people on the device they tend to use the most, a smartphone, according to company executives and analysts. The measures come as industry revenues from mobile games are expected to continue to rise in 2021, while revenues from PC and console games – which have exploded during the pandemic as people were stranded at home – should decrease.
This year, US companies have already spent more on mergers and acquisitions for mobile game studios than in 2020, according to research firm PitchBook Data Inc. There is a “race to scale” underway in the industry. mobile to acquire the largest user bases, said Doug Creutz, analyst at investment bank Cowen Inc., and more users mean more revenue.