Consolidation of the games market worries, but it is not a bog – 26.07.2022 – Tech.

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If there is one sector of the economy that cannot complain about the Covid-19 pandemic, it is the gaming industry. With people stuck at home consuming more games, there was a significant increase in revenue.

Still, Rodrigo Terra, president of Abragames (the Brazilian Association of Electronic Games Developers), was undeterred. “We were very concerned about the verticalization of the market,” he says.

The idea that the games industry was going through a process of “verticalization” (or “consolidation,” as it’s often called) took hold in January after an unprecedented string of billion-dollar deals.

These deals raised questions about the concentration of so much power (and money) in the hands of a few players in the games industry, and doubts about how it would change the market.

Terra’s concern was to replicate this phenomenon on a small scale in Brazil, buying medium and large studios or merging with smaller studios. “That would reduce the base of the pyramid and we wouldn’t have a cycle of new companies,” he says.

This movement did happen, but with a different result than he expected. “When the gaming market exploded, there was a lot of interest from students and even professionals from other areas of the economy who started to see games as a potential market,” he wrote.

The result was that many studios were born during the pandemic in 2020 and 2021. “Young people with great talent,” says Tera.

According to research published by Abragames, in the past four years, Brazil has gone from 375 game development studios to 1,009, an increase of 169%, with around 40% of these companies in existence for less than five years.

Chris Charla, Xbox’s general manager of projects and content curation, also notes the apparent expansion of the Brazilian industry. “The quality of games is increasing very quickly. Developers release one, two, three titles in a row and they keep getting better,” he says.

As the person in charge of the ID@Xbox program that helps bring indie titles to Microsoft platforms, and one of the company’s employees responsible for the ongoing consolidation process, Charla is in a privileged position to observe the market implications of this phenomenon.

He realizes that there is a process of consolidation, but he does not see this as something negative. “For a studio, joining a larger company may be the right thing to do. For others, starting over with a small project and surprising is the way to go.”

Charla sees that both options can be successful at the same time. “It shows we’re in a healthy industry,” he says.

“Being in the entertainment industry, you never know where the next big thing is going to come from. I don’t see anything in the sales numbers and long-term projections that could bother indie developers,” adds the executive, who cites “Cuphead,” the debut title from Canadian studio MDHR, as An example of an indie game that became a global success – even winning a series on Netflix.

It is also true that many things can still change. Major deals involving game companies have not yet been concluded or are awaiting regulatory approval – the FTC (US Federal Trade Commission) is still reviewing Microsoft’s acquisition of Activision Blizzard.

Additionally, analysts polled by GamesIndustry.biz don’t see the wave of acquisitions and mergers ending anytime soon. The only certainty is that the gaming market will never be the same again.


game

Game tip, new or old, for you to check out

a tramp

(PC and PS 4/5)

If you’ve ever seen a cute cat sleeping in the sun in the world and felt a twinge of envy, then Stray is the game for you. Popularly known as the kitty game, French studio BlueTwelve’s debut title was released last Tuesday (19) and became an instant classic. In the game, the player controls a lost yellow kitten who must explore different areas to find his way home in a world inhabited by robots. However, the strength of the game is that it is a “cat simulator” in which the player can play with balls, hit objects, scratch furniture and find cozy corners to sleep.


Update

News, launches, business and other things that matter

  • Studio Mojang, the developer of “Minecraft,” has released a note denying any possibility of NFTs being introduced into its main game, including by third parties. According to the company, this technology “creates patterns of scarcity and exclusion that are contrary to our guidelines and the spirit of Minecraft.” The move is seen as a warning to companies using the game to run their own NFT sales schemes.
  • Meanwhile… Square Enix has announced a November 2023 release of “Final Fantasy 7” commemorative cards and figures that will include NFTs.
  • Ubisoft has delayed the release of “Avatar: Pandora’s Limits” until “2023 or 2024.” The company, which reported a 9.8% drop in sales in the first quarter of the year, also canceled four games, including “Splinter Cell VR” (as the name implies, a virtual reality game from the spy series “Splinter Cell”) and “Ghost Recon Frontline” (“Call of Duty: Warzone” style multiplayer battle-royale).
  • For the first time, a woman will be on the cover of the global version of the “FIFA” game. Australia’s Sam Carey, the Chelsea player, will feature on the standard physical versions of FIFA 23 sold in Australia and New Zealand – in other countries, the standard cover will be France’s Kylian Mbappe. However, the bundled edition will also be available in other countries via Amazon.
  • The Discord app’s voice chat service has launched on Xbox consoles. Interestingly, the feature is not yet available on consoles from Sony, which made a small investment in the communications company last year.

Download

Games coming out in the coming days and promotions that are worth it

July 26

“A Story of Seasons: Pioneers of the City of Olives”: Undisclosed price (PS 4)

July 27

“Octopus Voyager: Champions of the Continent”: Free (Android, iOS)

July 28

“Bear and Breakfast”: Uncertain Price (PC)

“The Lost Epic”: BRL 34.99 (PC), price not disclosed (PS 4/5)

July 29

“Xenoblade Chronicles 3”: BRL 299 (switch)

Promotion of the week

The strategy game “Railway Empire” is on sale in Humble Bundle. The title, which makes it possible to build and control trains in a variety of scenarios, sells for just US$1 (R$5.50). For a little more, you can also buy a pack of nine expansions – the whole set costs US$12 (R$66). Part of the proceeds will be used for charity.


Reading of the week

What came out about the games in Folha

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