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Week in Mobile Games E49: Trump tariffs chaos and Supercell's celebrity marketing & investments push
The global games industry currently faces a period of profound instability driven by geopolitical trade tensions and shifting corporate strategies.
- New US tariff policies have created significant market volatility, with major tech and gaming companies experiencing stock declines and uncertainty regarding the pricing of upcoming hardware like the Nintendo Switch 2.
- AppLovin has expressed interest in merging with or acquiring TikTok’s international business operations outside of China, though reports suggest a deal remains speculative and complex due to regulatory hurdles.
- The Minecraft Movie achieved a strong opening, generating approximately $300 million in revenue within its first two days against a production budget of $150 million.
TWIG #326 Supercell Goes VC while Minecraft Kills at the Box Office
The global gaming industry is currently defined by a stark dichotomy between the massive success of transmedia adaptations and the structural challenges facing traditional game development.
- The Minecraft film's $313 million global opening establishes a new benchmark for video game adaptations, proving the high commercial value of Gen Z-focused franchises in transmedia.
- Corporate venture arms, such as Supercell’s investment division, are facing criticism for a lack of strategic cohesion and insufficient mentorship compared to traditional VC firms like Andreessen Horowitz.
- Investors are shifting toward a more selective strategy, prioritizing studios with established intellectual property and clear paths to profitability amid mobile market stagnation.
Ubisoft’s $1.25B Tencent Bailout: A Masterclass in Corporate Defense—or Malfeasance?
Ubisoft is currently navigating a complex financial restructuring involving a $1.25 billion investment from the Chinese conglomerate Tencent.
- Ubisoft has secured a $1.25 billion investment from Tencent, which involves moving core intellectual properties like Assassin’s Creed, Far Cry, and Rainbow Six into a newly created subsidiary.
- Tencent has acquired a 25% stake in this new subsidiary, a move designed to provide immediate liquidity to Ubisoft while insulating the company from potential hostile takeovers.
- The deal is structured as a subsidiary investment rather than a direct buyout to bypass French foreign investment regulations and avoid triggering change-of-control provisions.
AppLovin Hit by Short Sellers – Behind the $54B Market Cap Drop
AppLovin has faced significant financial volatility following a series of short-seller reports that alleged the company engaged in unauthorized data collection, misleading advertising, and violations of platform policies.
- AppLovin’s market capitalization dropped by 36%, or approximately $54 billion, falling from $150 billion to $96.11 billion between February and April following short-seller allegations.
- The short-seller reports accused AppLovin of unauthorized data collection, misleading advertising, and violations of platform policies, including the targeting of children.
- AppLovin has launched an independent investigation led by the law firm Quinn Emanuel and issued executive rebuttals to defend the integrity of its AXON advertising technology.
UK Video Games Industry in Numbers: Energising Business 2025
The United Kingdom video games industry serves as a significant economic engine, generating £6 billion in direct Gross Value Added.
- The UK video games industry generates £6 billion in direct Gross Value Added, with an additional £1.3 billion in economic spillover benefits to sectors like advanced manufacturing.
- Total consumer spending reached £7.82 billion in 2023, with digital sales accounting for £4.2 billion and reflecting a 3.8% year-over-year increase.
- The sector employs 26,000 people who contribute an average of £113,000 each to the economy, nearly double the national average productivity rate.
Annual and Sustainability Report 2024
Modern Times Group (MTG) concluded the 2024 fiscal year as a focused European mobile gaming entity, reporting net sales of SEK 6,015 million, representing a 3% currency-adjusted growth.
- MTG finalized the acquisition of Plarium Global Ltd in early 2025, significantly scaling its mid-core gaming capabilities and adding the flagship title RAID: Shadow Legends to its portfolio.
- The company reported 2024 net sales of SEK 6,015 million, reflecting 3% currency-adjusted growth, alongside an adjusted EBITDA of SEK 1,666 million and a net loss of SEK 210 million.
- MTG maintains a strong financial position with SEK 3,543 million in cash and equivalents and zero utilized external debt, supporting a strategy of active share buybacks and evergreen franchise investment.
Session: Türkiye’s Game Development Boom – A New Hub For Innovation & Investment - Irmak Tamgac.
The Turkish gaming ecosystem has evolved into a globally competitive hub for innovation and investment, characterized by a self-sustaining cycle of talent development and high-value exits.
- Türkiye’s gaming ecosystem has matured into a global hub, currently hosting over 815 gaming startups and producing more than 13,000 games on Google Play.
- The sector has seen significant high-value exits, most notably Zynga’s acquisition of Peak Games for $1.8 billion in 2020 and subsequent acquisitions of Rollic Games, cementing Türkiye's status as a major player with two gaming unicorns.
- The industry is diversifying beyond its traditional mobile and hyper-casual roots, evidenced by the breakout success of PC titles like 'Liar's Bar' and 'Supermarket Simulator' on Steam.
Why VC Bets on ex-Riot & ex-Blizzard Founders Are Failing
Venture capital investment in PC gaming startups founded by former Riot Games and Blizzard Entertainment developers has faced a recurring pattern of failure, characterized by high-budget projects that struggle to gain market traction.
- Venture capital investment in studios led by former Riot and Blizzard developers is failing because high-budget, traditional development models are struggling to gain traction in the current PC gaming market.
- Elodie Games shuttered its studio and cancelled its MOBA extraction title, Seekers of Skyveil, only 18 days after launch despite having secured $32.5 million in funding.
- Founder pedigree is no longer a reliable predictor of success, as modern players prioritize gameplay innovation and accessibility over the historical industry credentials of studio leadership.
Video game investors on 2025: "It's tough, but there is optimism"
The investment landscape for the video game industry in 2025 is characterized by a shift toward a new, more disciplined normal.
- The era of speculative, easy capital for concepts like the metaverse and Web3 has ended, replaced by a requirement for financial self-sufficiency and high-quality, playable prototypes.
- Early-stage venture capital volume remains resilient and currently exceeds pre-pandemic levels, despite a broader decline in total deal values across the industry.
- Investors are shifting their preference away from AAA veterans seeking large budgets toward 'scrappy' founders with proven entrepreneurial track records.
GDC 2025 Recap: Industry Insights & Market Trends
The gaming industry is currently navigating a period of profound contraction, defined by an age of austerity that has fundamentally altered the landscape of major professional gatherings.
- The gaming industry is currently in an 'age of efficiency' characterized by austerity, with many high-profile studios facing severe financial instability and limited runway through 2026-2027.
- Investment in gaming has significantly contracted, as evidenced by major venture capital firms like A16Z shifting focus away from the sector despite maintaining large funds.
- GDC 2025 attendance was noticeably lower than in previous years, with the event shifting toward smaller, exclusive, executive-focused gatherings rather than broad industry participation.
Pocket Gamer Reacts: Breaking down Scopely's blockbuster $3.5bn deal for Niantic's games business
Scopely’s acquisition of Niantic’s games business for $3.5 billion represents a major consolidation within the mobile gaming sector, signaling a strategic pivot for both organizations.
- Scopely has acquired Niantic’s games business for $3.5 billion, taking over the development and live-service operations for titles including Pokémon GO, Monster Hunter Now, and Pikmin Bloom.
- Pokémon GO remains the primary financial anchor of the deal, having generated over $8.5 billion in lifetime gross revenue.
- Niantic is pivoting to focus on geospatial AI technology, supported by a $250 million funding round that includes a strategic investment from Scopely.
Skillz CEO Andrew Paradise on the $75M Accelerator and the Future of Skill-Based Gaming
The $75 million Developer Accelerator program aims to catalyze the next generation of high-quality, synchronous, skill-based mobile gaming.
- The Skillz Developer Accelerator program provides $75 million in capital and infrastructure to studios developing high-quality, synchronous, skill-based mobile games.
- To qualify for the accelerator, developers must demonstrate strong performance metrics, specifically a Day 1 retention rate exceeding 45% and a proven capacity for long-term live operations.
- The skill-based gaming market is projected to grow from $31 billion in 2022 to $85 billion by 2030, driven by competitive models that prioritize entry fees and prizes over ad-supported or pay-to-win monetization.