The well-known game publisher Take-Two, which holds the rights to release blockbusters like GTA, Red Dead Redemption (Rockstar) or the famous sports game series produced by 2K, has just bought Zynga outright for 12.7 billion. USD. The sale officially went down in history as the most expensive contract the game industry has ever witnessed.
Looking at the games Zynga has in hand – like the farming game FarmVille and the city building CityVille, and considering the history of social media dominance dating back to the 2010s, it is suggested that the deal is $12.7 billion. too high. However, when FarmVille did not achieve great success in 2020, Zynga successfully transformed herself, turning herself into a giant in the mobile game industry after spending billions of dollars, buying a series of potential game development studios.
Zynga’s headquarters.
Last year, Zynga entered the PC game market when she bought the studio Echtra Games, the developer of the hack and slash game Torchlight.
With an impressive list of games, Zynga attracts more than 168 million monthly users, generating revenue of $706 million according to last year’s Q4 report.
Zynga’s game list for all ages is “out of place” with the blockbuster series that Take-Two has in hand, but the intention of the big game corporation is not in the other mobile games. Through Zynga, Take-Two can bring its popular game series, including GTA, Red Dead, Civilization, Borderlands, BioShock and 2K sports game series to hundreds of millions of mobile users. Rockstar also announced the GTA mobile project last year, intending to bring one-time blockbusters to smartphones.
GTA Online is still the goose that lays golden eggs after nearly a decade on the air.
“Take-Two has a long list of PC and console titles that are both commercially successful and critically acclaimed, with loyal and active player communities, and an opportunity to create an immersive experience. Mobile, cross-platform experience for many of the games we have,” the company wrote in a statement sent to the press.
“Zynga’s nearly 3,000 employees, including talented mobile game developers, will pave the way for Take-Two to push ahead with its new strategy, introducing our intellectual property assets to the fastest growing platform. industry“.
Mobile, or poor
The company’s development orientation believes that the acquisition of Zynga is reasonable, does not mean that the price of 12.7 billion USD reflects the value of the mobile game company. But looking here, we can appreciate Take-Two’s efforts to enter the mobile segment.
The price they have to pay is much higher than the $7.5 billion Microsoft spent to buy out Bethesda – a big game company that holds many games that are loved by the entire electronic entertainment industry. Zynga will be worth it as it helps Take-Two pull in a fraction of the profits from the mobile market, which is estimated to be worth nearly $100 billion in 2020.
Mobile games are growing stronger thanks to convenience.
For mature players with computers (PCs) or game consoles (consoles), it is difficult to imagine the tremendous growth rate of mobile games. The mobile game market share can be clearly seen in the Asian market, where most gamers can hardly invest in PCs or advanced gaming consoles to satisfy their interests. From humble beginnings with the two words “convenience”, the Asian mobile game market has now become the cash flow that accounts for the majority of total revenue from games.
Considering the large market with huge potential, spending tens of billions of dollars to immediately have a foot in the mobile market seems to be a step in the right direction. Looking at the current Activision Blizzard’s success, we immediately see how profitable “reservation” is.
In 2015, the major game development and publishing corporation bought King Games, the maker of Candy Crush, for $5.9 billion, an unprecedented deal at that time. Currently, King Games accounts for a third of the total revenue of the major game corporation.
Activision continues to exploit the mobile market with a version of Call of Duty developed by King. However, the project started in 2017 without fruit, causing Activision to hire TiMi Studios (owned by Tencent) to develop Call of Duty: Mobile. It is expected that the smartphone game will bring Activision Blizzard 1 billion USD in 2021.
With Zynga, Take-Two will have a strong foothold in the mobile game market.
Mobile games have been in a very different position than in the past, no longer hiding under the giant shadow of both the PC and the console. In recent years, large game corporations have sought to exploit the mobile game market.
Mobile, or poor. Corporations that develop and publish games clearly cannot sit idly by, making large investments to find ways to keep gamers sitting in one place, and at the same time find ways to gain a foothold in the lucrative mobile game market.
According to ArsTechnica
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