Posted on

Why supporting indies is the key to growing the Brazilian games industry

“Juliana,
I
sold
a
company
that
I
don’t
have,
can
you
come
and
make
me
a
company?”

Juliana
Brito
became
the
co-founder
and
CEO
of
indie
accelerator
programme
Indie
Hero
after
her
business
partner
Ian
Rochlin
went
to
reality
TV
series
Shark
Tank
Brazil
and
sold
25%
of
the
not-yet-launched
company
for
$R1.
Yes,
your
read
that
correctly.

“The
video
went
viral,”
Brito
smiles,
remembering

Rochlin’s
Shark
Tank
appearance

and
his
phone
call
to
her
about
needing
help
to
set
up
the
company.
“At
the
time,
we
[already]
had
Game
Jam
Plus,
the
biggest
game
development
marathon
competition
in
the
world.
We
are
in
42
countries
right
now;
we
had
5,000
participants
last
year.

“And
then
he
went
to
Shark
Tank
and
he
did
a
pitch
about
a
company
that
would
be
the
biggest
game
producer
without
producing
games.”

Rochlin’s
gambit
was
to
only
ask
for
a
$R1
investment
because
he
deemed
it
more
important
to
have
investors
on
his
side
rather
than
money.
That
paid
off
and
securing
their
support
opened
many
doors
for
the
duo,
leading
to
the
creation
of
Indie
Hero.

The
accelerator
programme
primarily
works
as
a
platform
which
connects
Brazilian
developers
with
investors.
But
from
that
initial
idea
of
supporting
indies,
Indie
Hero
noticed
other
needs:
while
there
was
funding
available,
most
studios
“were
not
ready
for
it,”
Brito
says.

So
the
firm
took
a
step
back
and
also
included
support
to
learn
how
to
pitch,
how
to
self
publish,
and
more.

“We
started
to
see
other
kinds
of
necessities
for
the
indies,
so
we
started
organising
B2B
events,
[and]
we
started
organising
Brazilian
Game
Fest,
a
B2C
event
so
[studios]
can
actually
grow
[their]
social
media,
and
we
just
kind
of
grew
around
that,”
Brito
continues.
“Because
our
mission
is
that
everyone
who
wants
to
[make
a
living]
from
[making]
games
should
be
able
to
do
it.
The
industry
is
big
enough,
and
there’s
enough
money
in
it
that
we
can
actually
provide
that.
So
it’s
an
acceleration
programme,
events,
and
all
this
kind
of
stuff.”

“I
think
the
biggest
challenge
for
[game
developers
in
Brazil]
is
to
see
themselves
as
entrepreneurs”

Game
Jam
Plus
and
Indie
Hero
have
1,500
mentors
around
the
world
to
support
budding
talent.
The
company
is
also
about
helping
Brazilian
developers
set
up
their
studios
from
a
more
practical
point
of
view,
as
they’re
often
focused
on
the
game
and
not
the
business.

“I
think
the
biggest
challenge
for
[game
developers
in
Brazil]
is
to
see
themselves
as
entrepreneurs,”
Brito
says.
“They
go
through
a
lot
of
challenges
to
understand
that
in
order
to
do
the
game
they
want
to
do,
they
actually
have
to
build
a
business
around
it.
And
so
that’s
very
hard
for
them
and
sometimes
takes
years
before
they
either
get
a
business
partner
that
will
take
this
part,
or
[realise],
‘Okay,
we
have
to
do
it’.”

The
recent
adoption
of
a
legal
framework
for
games
in
Brazil
has
been
a
monumental
step
forward
in
this
regard;

something
you
can
read
more
about
in
this
article
about
the
implications
of
the
breakthrough
legislation
in
the
country
.

That’s
all
the
more
welcome
that
Brazil
has
a
very
fertile
ground
for
the
games
industry,
having

grown
exponentially
in
the
past
decade
.

“Brazil
has
120
million
players,”
Brito
says.
“That’s
because
we
don’t
have
100%
penetration
of
smartphones
yet,
we
have
80%,
so
there
are
still
people
who
don’t
have
smartphones
that
are
acquiring
[them]
right
now.
And
also
some
regions
that
are
[still]
getting
the
internet.
So
this
number
is
going
to
grow.

“We
are
the
tenth
biggest
game
economy
in
the
world
today.
So
I
think
there’s
a
huge
opportunity
for
us
to
look
to
our
own
market
to
provide
games
that
would
be
meaningful
to
the
Brazilian
population
itself,
with
some
regional
things
that
we
will
identify
ourselves
with.
Most
of
the
120
million
people
are
playing
AAA
games,
but
they
do
like
indie
games.
I
think
there
is
an
untapped
market.”

Brito
runs
an
event
called
Brasília
Game
Festival
in
the
country’s
capital,
and
she
says
the
enthusiasm
for
indies
has
been
increasingly
noticeable.

“We
received
60,000
people
in
May
there,
and
the
indie
alley
was
one
of
the
most
visited
areas
of
the
event.
We
had
36
indie
studios,
they
were
fully
booked
the
whole
time,
a
lot
of
the
studios
did
sales,
and
we
had
an
average
of
800%
growth
in
[social
media]
followers
during
three
days
of
events.
That
shows
we
have
a
public
with
an
appetite
for
indie
games,
if
we
know
how
to
tap
that.
And
that
comes
[back]
to
the
biggest
difficulty
for
indie
developers,
to
see
themselves
as
a
business.
You’re
doing
business,
not
a
game.”

“We’re
not
Europe,
but
there’s
still
more
funds
[in
Brazil]
than
anywhere
else
in
Latin
America”

The
number
of
public
funds
has
also
increased
over
the
past
three
years,
Brito
says,
thanks
for
instance
to
the
Paulo
Gustavo
law,
a
public
funding
initiative
to
help
the
audiovisual
sector
recover
post-COVID.
She
also
mentions
the
Aldir
Blanc
cultural
fund,
launched
in
2023
as
the
largest
public
investment
into
the
cultural
sector
in
Brazil’s
history
at
$R15
billion
($2.6
billion).

“We
have
some
public
funds
for
gaming
that
we
didn’t
have
in
the
past,
and
besides
that
we
have
now
two
venture
capitalists
that
have
funds
for
games,”
Brito
says,
naming
Osten
Games
and
Bossa
Nova
Games.
“And
that’s
something
that
happened
in
the
last
two
years,
so
that
was
pretty
cool.”

She
adds:
“So
we’re
not
Europe,
but
there’s
still,
I
think,
more
funds
than
anywhere
else
in
Latin
America.”

Being
able
to
fund
new
studios
is
a
cornerstone
of
growing
the
Brazilian
games
industry
because,
as
Brito
puts
it,
it
simply
does
not
exist
without
indie
developers.

“The
Brazilian
industry
is
done
by
the
indies.
We
don’t
have
any
AAA
studios
here.
So
if
you
say
you’re
going
to
grow
our
industry,
you
should
grow
the
indie
game
industry.
That’s
the
only
thing
we
can
grow.
We
have
big
companies
like
Kokku,
Dumativa,
Puga,
that
do
a
lot
of
outsourcing
for
AAA
studios,
but
they
are
not
the
main
part
of
our
market

they
will
be
10%
of
our
market
maybe.”

Brazil
does
have
prominent
mobile
studio
Wildlife
(which

recently
cut
its
workforce
),
while
one
of
its
biggest
studios,
Aquiris,

got
acquired
by
Epic
in
2023

to
form
Epic
Games
Brasil.

“And
now
we
have
Hermit
Crab
and
Gazeus
also
[making]
some
millions,”
Brito
continues,
mentioning
the
diversity
of
Brazilian
indie
studios
and
its
“healthy
ecosystem”
with
developers
working
across
all
platforms
and
genres
(there
were
1,042
studios
in
Brazil
as
of
last
year
).

“We
need
a
healthy
base
of
small
studios
so
we
can
keep
a
[sustainable]
market.
To
actually
have
success,
to
use
a
pyramid
[image],
you
have
to
have
a
lot
of
studios
at
the
base,
and
then
you
get
some
in
the
middle,
then
you
get
some
at
the
top.
All
industries
are
like
that,
so
we
need
to
have
a
healthy
base
so
we
can
actually
have
an
ecosystem.
It’s
super
important
to
support
indie
studios.
And
everybody
also
knows
that
the
real
innovation
will
come
from
indie
studios
in
the
world.
The
big
studios
and
publishers
are
not
innovating,
because
it’s
a
big
risk.
The
ones
that
are
trying
to
do
new
kinds
of
games
are
the
indies.
That’s
where
the
innovation
will
come
from.”

Looking
ahead,
Indie
Hero
is
hoping
to
provide
more
support
to
the
indies
it
works
with,
and
help
them
rise
to
the
top.

“We
are
building
platforms
to
become,
not
a
publisher
in
itself,
but
to
help
distribute
more
games.
So
we
are
looking
to
educate
the
Brazilian
and
the
Latin
America
publics
in
general,
to
not
just
play
big
games
but
also
to
play
indies.
All
our
actions
aim
to
do
that
right
now,
to
actually
build
a
community,
and
produce
content
so
that
all
of
these
studios
can
find
their
own
niche
inside
of
our
community.”

She
continues:
“We’re
doing
deals
with
some
[developers],
just
so
they
can
get
some
cash
going
inside
the
studio,
and
actually
get
some
traction.
Our
goal
is
to
actually
[teach
developers]
how
to
be
financially
stable
and
to
bring
some
recurring
revenue.
With
some
studios,
we
did,
like,
‘Do
a
game
a
month’,
and
then
they
launched
them
on
Steam
to
generate
$500
or
$1,000
monthly.
In
dollars,
that’s
a
lot
for
Brazilians.
Now
we’re
doing
this
kind
of
stuff
so
they
can
actually
have
some
ways
that
the
studio
doesn’t
go
broke
while
they
are
working
on
a
bigger
intellectual
property.
Our
mission
right
now
is
about
solidifying
this
day-to-day
for
the
studios.”

Additional
reporting
by
James
Batchelor
Posted on

Nerd Street Gamers raises $6m in funding round

Nerd
Street
Gamers
has
raised
$6
million
in
a
funding
round.

As
reported
by

Esports
Insider
,
the
investment
was
led
by
capital
firm
Konvoy
Ventures
which
provided
$5
million
of
the
funding.
The
other
$1
million
was
sourced
from
“strategic
investors.”

The
esports
infrastructure
company
will
use
the
money
raised
to
grow
its
LAN
gaming
center
chain
Localhost,
which
has
venues
across
the
United
States.

Nerd
Street
Gamers
plans
to
open
new
collegiate
locations,
including
partnerships
with
Temple
University
where
it
will
host
an
esports
programme
and
Maryville
University
to
run
a
youth
summer
camp.

“We
couldn’t
have
asked
for
a
better
partner
in
Konvoy
given
their
experience,
network,
and
most
importantly
their
passion
for
the
industry,”
said
Nerd
Street
Gamers
founder
and
CEO
John
Fazio.
“Together,
we’re
going
to
build
something
that
amplifies
the
entire
industry.”

Last
week,

Digiday

reported
that
following
financial
troubles
last
year,
Nerd
Street
Gamers
took
out
a
loan
from
Riot
Games
“to
compensate
players
and
talent”
which
the
company
has
since
paid
off.

Posted on

Playtika acquires SuperPlay for $700 million

Playtika
has
acquired
mobile
developer
Superplay
for
$700
million.

The
company
announced
an
additional
contingent
consideration
of
up
to
$1.25
billion,
“subject
to
Superplay
achieving
certain
financial
targets”
over
the
next
three
years.
This
will
be
funded
by
cash
“generated
from
ongoing
operations
and
Playtika’s
balance
sheet.”

Playtika
says
the
acquisition
is
“expected
to
move
the
needle
for
[its]
proforma
growth,”
with
Superplay’s
current
titles
Dice
Dreams
and
Domino
Dreams
in
addition
to
two
titles
currently
in
development.

Superplay
was
founded
by
former
Playtika
staff
Gilad
Almog
and
Eyal
Netzer,
alongside
industry
veteran
Elad
Drory.
Superplay
will
be
led
by
Gilad
and
Eyal
as
its
own
studio
within
Playtika
following
the
acquisition.

“We
see
the
acquisition
of
Superplay
as
a
key
move
in
strengthening
Playtika’s
leadership
in
mobile
gaming,
driving
growth
with
scaled
titles,
and
unlocking
new
opportunities,”
said
Playtika
CEO
Robert
Antokol.

“Superplay’s
proven
talent
and
success
in
navigating
complex
environments
align
seamlessly
with
our
team.
Together,
we’re
expanding
our
ability
to
deliver
exceptional
experiences
to
players
worldwide.”

Superplay’s
Almog
and
Netzer
added:
“We’re
incredibly
excited
for
this
opportunity.
It
is
a
testament
to
our
amazing
team
who
bring
creativity
and
passion
to
everything
we
make.
With
Playtika’s
backing
and
support,
we’ll
continue
growing
the
most
memorable
and
engaging
games
in
their
category,
and
exchange
knowledge
that
will
propel
each
other
to
new
heights.”

Earlier
this
year,
Playtika
announced
it
was

aiming
to
spend
$1.2
million
on
mergers
and
acquisitions

over
the
next
three
years.

Posted on

Lighthouse Games moves to new office in Leamington Spa

Lighthouse
Games
is
moving
to
a
new
office
in
Leamington
Spa,
with
plans
to
expand
its
team
as
it
works
on
a
new
project.

The
studio
is
transitioning
from
its
office
in
Marlborough
House
to
the
20,000
square
foot
space
located
at
Imperial
Court,
where
it
will
occupy
four
floors.

It
agreed
on
a
deal
with
property
agency
Wareing
&
Company
director
Jonathan
Blood
following
an

unspecified
investment
from
Tencent
last
July
.

“We’d
been
looking
for
new
offices
for
a
while,
as
our
old
space
at
Marlborough
House
couldn’t
accommodate
our
rapid
expansion,”
said
Lighthouse
Games
operations
director
Nick
Craig.

“The
property
ticked
a
lot
of
boxes
for
us

parking
so
any
staff
driving
in
can
relax
on
their
commute
knowing
they
can
easily
park,
close
to
great
local
restaurants
and
bars
so
they
can
socalise
together
after
work,
and
lots
of
space
for
us
to
expand.”

Blood
added:
“This
deal
show’s
Leamington’s
office
market
is
proving
more
resilient
than
other
towns
of
its
size,
and
also
shows
the
faith
the
video
games
industry
has
in
the
town.

“Imperial
Court
is
one
of
the
most
prominent
office
buildings
in
the
town,
and
its
versatility
and
ease
of
access
were
very
attractive
to
Lighthouse
Games.”

Posted on

Team17 revenue rose 11% during H1 2024

Team17
has
released
its
financial
results
for
the
first
half
of
2024,
with
the
firm
reporting
a
11%
increase
in
revenue
to
£80.6
million.

The
numbers:



For
the
six
months
ended
June
30,
2024:


  • Revenue:

    £80.6
    million,
    up
    11%
    year-on-year

  • Gross
    profit:

    £32.9
    million,
    up
    9%
    year-on-year

The
highlights:

Team17
experienced
growth
across
its
business
operations,
including
a
18%
increase
in
EBITDA
from
£16.5
million
in
H1
2023
to
£19.4
million.
It
also
saw
a
53%
rise
in
profit
before
tax
from
£8.1
million
to
£12.4
million.

The
firm
released
nine
new
games
and
three
new
apps
during
the
period,
which
included
Border
Bots,
Classified
France
’44,
Undead
Inc,
and
Autopsy
Simulator.
Hell
Let
Loose
also
launched
on
Game
Pass,

following
Team17’s
acquisition
of
the
IP
in
2022
.

Overall,
games
label
revenue
grew
by
9%
to
£51.3
million,
while
its
first
party
IP
revenue
increased
25%
and
represented
42%
of
Team17’s
total
revenue.

However,
the
company
noted
that
the
new
releases
market
“continued
to
remain
challenging”
during
the
first
half
of
2024,
which
contributed
“to
the
decision
to
make
a
combined
£4.6
million
impairment
across
a
small
number
of
titles”
expected
to
release
in
2024
and
2025.

German-based
developer
Astragon
also
saw
increased
revenue
growth
of
13%
to
£18.5
million,
following
strong
performances
from
Construction
Simulator
and
Police
Simulator
which
drove
an
increase
in
first-party
sales
of
17%.

Educational
games
studio
StoryToys
revenue
experienced
growth
of
23%
to
£10.9
million,
while
active
subscribers
grew
from
over
310,000
in
H1
2023
to
more
than
350,000.

“I
am
pleased
with
Team17’s
performance
during
the
first
half
as
we
continue
to
focus
on
driving
sales
through
first
party
IP
titles
and
across
our
extensive
portfolio,
with
strong
demand
for
our
games
and
apps,”
said
Team17
CEO
Steve
Bell.

“Looking
ahead,
there
is
significant
growth
potential
in
our
core
markets

indie,
edutainment,
and
working
simulation
games,”
he
continued.
“Our
focus
on
creating
a
portfolio
of
games
and
apps
with
evergreen
longevity,
and
leveraging
our
excellent
lifecycle
management
capabilities,
ideally
positions
us
to
capitalise
on
this
and
build
a
lifetime
of
play
within
our
growing
portfolio
and
player
base.”


Bell
was
appointed
Team17
CEO
earlier
this
year
,
following

Debbie
Bestwick’s
departure
to
a
non-executive
director
role

in
March
2023.

Last
October,

reportedly
90
jobs
were
at
risk
as
part
of
Team17’s
restructuring
efforts
.
This
followed

a
round
of
layoffs
in
early
2023

due
to
“a
re-alignment
of
elements
within
its
studio
operating
business
model.”

Posted on

Intel reportedly lost PlayStation 6 chip deal to AMD

Intel
reportedly
lost
Sony’s
PlayStation
6
chip
contract
to
Advanced
Micro
Devices
in
2022,
missing
out
on
a
potential
$30
billion
in
revenue.

This
is
according
to

Reuters
,
with
sources
claiming
that
the
deal
fell
through
after
Intel
and
Sony
failed
to
settle
on
“how
much
Intel
stood
to
take
from
each
chip
sold.”

The
sources
alleged
that
internal
projections
from
Intel
suggested
that
Sony’s
console
business
“could
have
pumped
roughly
$30
million”
into
the
firm
had
the
contract
gone
through.

Reuters
also
noted
it
could
have
financially
boosted
Intel’s
foundry
segment,
which
formally
launched
earlier
this
year.

In
response
to
the
claims,
an
Intel
spokesperson
said:
“We
strongly
disagree
with
the
characterisation
but
are
not
going
to
comment
about
any
current
or
potential
customer
conversations.
We
have
a
very
healthy
customer
pipeline
across
both
our
product
and
foundry
business,
and
we
are
squarely
focused
on
innovating
to
meet
their
needs.”


AMD
has
had
a
design
contract
with
Sony
since
2014
,
having
made
custom
chips
for
both
PlayStation
4
and
PlayStation
5.

Posted on

Saber Interactive secures investors to help clear debt to Embracer

Saber
Interactive
has
secured
investments
from
two
private
equity
firms
to
help
clear
its
debt
to
Embracer.

Aleph
Capital
Partners
and
Crestview
Partners
announced
a
“significant
equity
investment”
of
an
undisclosed
sum,
to
support
Saber
in
its
growth
initiatives
and
M&A
activity.

As
part
of
the
transaction
Jamie
Rahamim
(Aleph
managing
director
and
head
of
media)
and
Brian
Cassidy
(Crestview
president
and
head
of
media)
will
join
Saber’s
board
of
directors.

“Aleph
and
Crestview
is
a
testament
to
what
we
have
built,
and
more
importantly,
to
what
we
can
still
achieve
in
the
coming
years
as
creators
and
providers
of
some
of
the
best
game
content
in
the
world,”
said
Saber
CEO
Matthew
Karch.

“I
have
been
doing
this
long
enough
to
know
that
the
most
important
aspect
of
any
investment
is
who
your
partners
are,
and
I
can
state
with
tremendous
confidence
that
Jamie
and
Brian
and
their
respective
teams
at
Aleph
and
Crestview
are
the
right
fit
for
Saber’s
future.

Saber
was

acquired
by
the
Embracer
Group
in
2020
for
$525
million
.
In
June
2023,

Embracer
announced
a
restructuring
program

after

Savvy
Games
Group
backed
out
of
a
$2
billion
deal

with
the
firm.

Earlier
this
year,

Saber
bought
itself
back
from
Embracer

in
a
deal
worth
up
to
$500
million.