The Game

TWIG #313 Netflix Games Gets Jacked while the Game Awards Jacks Up Numbers

The global gaming industry is currently navigating a period of strategic recalibration, characterized by shifting investment priorities and the search for sustainable growth models.

• Long-term retention in the mobile gaming sector is increasingly driven by core gameplay depth rather than high valuations or marketing, as evidenced by established giants like Supercell struggling to maintain engagement for new titles.
• Netflix is re-evaluating its gaming strategy by potentially pivoting toward internal intellectual property after experiencing challenges with the high costs and removal of major licensed titles.
• The Game Awards reported 154 million viewers, but industry analysts remain skeptical of this figure due to the use of non-traditional measurement methodologies that lack standard broadcast rigor.

Keighley's Kingdom: The Novel Business Model Behind The Game Awards and Its Future

This analysis explores the evolution of The Game Awards from a niche industry event into a dominant global media platform.

• The Game Awards has grown from 1.9 million viewers in 2014 to 154 million in 2024, significantly outpacing the 50% to 67% viewership declines seen by traditional ceremonies like the Oscars and Grammys.
• The event functions as a high-value marketing platform, charging approximately $600,000 for a two-minute trailer slot as of 2023.
• The show operates as a retail catalyst by coordinating with digital storefronts like Steam and Epic Games to drive sales during the broadcast.

Revealed: The Top New PC and Console Games of 2024

This analysis provides a comprehensive overview of the top-performing PC and console games of 2024, utilizing proprietary estimation algorithms to evaluate market success across Steam, PlayStation, and Xbox platforms.

• Black Myth: Wukong, Palworld, and Helldivers 2 emerged as the top-performing PC titles on Steam, each exceeding one million units sold in 2024.
• Viral, lower-cost titles and specialized genres, such as first-person store management simulators, are currently driving significant market engagement and streamer interest.
• Sports titles remain the primary volume drivers for both PlayStation and Xbox consoles, though Xbox sales figures consistently trail those of Steam and PlayStation.

Linking The Game Awards and Live Streaming

The analysis explores the correlation between critical acclaim at The Game Awards 2024 and live-streaming viewership performance.

• Esports titles dominate live-streaming viewership, with the category nominees generating a combined total of nearly 5 billion hours watched, led by League of Legends with 1.8 billion hours.
• Fortnite remains the leader in the Best Ongoing Game category with 738.7 million hours watched in 2024, far outpacing other live-service competitors.
• Elden Ring: Shadow of the Erdtree outperformed all other Game of the Year nominees on live streaming, accumulating 187.8 million hours watched.

NODWIN Gaming Continues Rights Deal With The Game Awards

NODWIN Gaming has extended its partnership with The Game Awards, securing the distribution rights for the annual event across a broader range of international markets.

• NODWIN Gaming has extended its distribution partnership with The Game Awards to cover India, Myanmar, Uzbekistan, Indonesia, the Philippines, Thailand, Malaysia, Vietnam, and Taiwan.
• The distribution strategy for the event will utilize a multi-channel approach, including television, OTT platforms, online streaming, and influencer channels.
• This agreement builds upon an initial rights deal established between NODWIN Gaming and The Game Awards in 2023.

GREE Consolidated Financial Results for the Three Months Ended September 30, 2024

GREE, Inc. reported consolidated financial results for the first quarter of the fiscal year ending June 30, 2025, covering the period from July 1, 2024, to September 30, 2024.

GREE Holdings FY2025 Q1 Financial Results Briefing (Transcript)

GREE, Inc.’s financial results for the first quarter of fiscal year 2025 reflect a period of mixed performance characterized by operational growth in core segments offset by significant volatility in the investment portfolio.

• GREE reported ¥12.9 billion in net sales and a consolidated operating loss of ¥0.1 billion for FY2025 Q1, impacted by a ¥1.4 billion foreign exchange loss and an ¥0.8 billion loss in the Investment Business.
• The Metaverse segment demonstrated strong growth, with the VTuber business achieving a 71% year-over-year sales increase and a strategic goal to reach profitability by FY2026.
• The Investment Business underperformed due to ¥0.6 billion in valuation losses and write-downs, primarily stemming from crypto assets and funds nearing their settlement periods.

Akatsuki Company Overview: November 2024

Akatsuki, a Tokyo-based entertainment firm listed on the Tokyo Stock Exchange Prime Market, is currently executing a strategic pivot to transform from a mobile-centric gaming developer into a diversified global entertainment powerhouse.

• Akatsuki is pivoting from a mobile-centric developer to a diversified global entertainment firm, focusing on high-budget 3D multi-platform gaming and the digital comics market.
• The company reported consolidated sales of ¥23,972 million as of March 2024, providing the financial foundation for its transition toward titles like TRIBE NINE and Kaiju No. 8 The Game.
• Akatsuki maintains an investment portfolio valued at approximately 26.6 billion yen as of September 2024, which is expected to enter a harvesting stage in fiscal year 2025.

FY2024 Presentation Material

CyberAgent achieved record consolidated sales of 802.9 billion yen in fiscal year 2024, representing an 11.5% year-over-year increase, while operating profit surged 70.4% to 41.8 billion yen.

• CyberAgent achieved record consolidated sales of 802.9 billion yen in FY2024, an 11.5% year-over-year increase, with operating profit surging 70.4% to 41.8 billion yen.
• The Game business returned to growth for the first time in three years, generating 195.9 billion yen in sales and a 34.6% increase in operating profit driven by Umamusume: Pretty Derby and five new title launches.
• ABEMA reached a record 30.29 million weekly active users with a 22.4% increase in sales, and is now transitioning to a tiered pricing model to improve monetization.

FY2024 Consolidated Financial Results (Japanese GAAP): Japan

CyberAgent achieved significant financial expansion during the 2024 fiscal year, characterized by an 11.5% increase in consolidated net sales to ¥802,996 million and a dramatic 204.7% surge in net income.

• CyberAgent reported a 204.7% surge in net income for FY2024, with consolidated net sales rising 11.5% to ¥802,996 million.
• The Game Business drove performance with a 34.6% increase in operating income and ¥195,648 million in sales, despite recording ¥5,102 million in impairment losses.
• The ABEMA media platform significantly reduced annual losses from ¥11.5 billion to ¥1.9 billion, moving the segment closer to full profitability.

Akatsuki Management Strategy Briefing

Akatsuki is undergoing a fundamental strategic pivot to establish itself as a premier global digital content provider, focusing exclusively on high-end games, comics, and anime.

• Akatsuki is pivoting to a global, multi-device strategy, exiting domestic-only projects and real-life entertainment to focus exclusively on high-end games, comics, and anime.
• The company is investing 20 billion yen into next-generation, 3D multi-platform gaming, supported by a centralized development platform called Project Akatsuki.
• Key titles driving this global expansion include Atelier Resleriana, TRIBE NINE, and Kaiju No. 8 The Game, leveraging partnerships with Sony and Koei Tecmo to mitigate risk.

Rising Game Sales and Services Help PlayStation Offset 21% Decline in Hardware Revenue in Q1

Sony’s financial results for the first fiscal quarter of 2024 demonstrate a strategic shift in revenue composition, as robust performance in software and services successfully mitigated a downturn in hardware sales.

• Sony’s Game & Network Services segment reported Q1 revenue of ¥864.9 billion ($5.9 billion), a 12% year-over-year increase, with operating profit rising 33% to ¥65.2 billion ($443.6 million).
• Growth in first-party game sales and network services successfully offset a 21.7% decline in hardware revenue, which fell to ¥146.3 billion ($1 billion).
• PlayStation 5 console sales dropped 27.2% year-over-year to 2.4 million units, bringing total lifetime sales to 61.7 million units as of June 30, 2024.