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TWIG #364 Off-Air Relationships and Personal Reflections
The gaming industry currently faces a complex landscape defined by shifting demographic preferences and intense competition among major platforms.
- The gaming market is defined by intense platform competition, with Supercell dominating Gen Alpha, Fortnite facing pressure from the Roblox ecosystem, and the industry bracing for the impact of Grand Theft Auto 6.
- The industry is seeing a concerning rise in gambling-related marketing targeting younger demographics, utilizing psychological mechanics that mirror those found in traditional gaming.
- Market growth is currently driven by a robust PC gaming sector, the continued dominance of the Chinese market, and the emergence of micro-drama platforms as key engagement drivers.
Inside the Hiring Playbook of Top-Performing Startups
Early-stage startups frequently falter by underestimating the time commitment required for recruitment and mistakenly assuming that capital or brand prestige alone will secure top-tier talent.
- Startups must treat hiring with the same analytical rigor as product development, prioritizing speed and consistent standards to maintain a competitive advantage over larger corporations.
- Founders should prioritize candidates with proven hands-on execution skills over those relying on corporate pedigree or management titles, as tactical output is paramount in early-stage environments.
- To compete with tech giants, startups must leverage unique value propositions such as mission-driven work, accelerated career growth, and increased individual autonomy.
China WeChat Mini Games Industry Report 2026
The WeChat Mini Games industry in China has emerged as a dominant, high-growth sector within the broader digital ecosystem.
- The WeChat Mini Games market reached RMB 53.535 billion in 2025, a 34.39% year-over-year increase, with projections exceeding RMB 70 billion for 2026.
- WeChat dominates the sector with a 51.5% platform penetration rate and 571 million monthly active users as of August 2025.
- Revenue is primarily driven by in-app purchases (68.11%), supplemented by advertising monetization (31.89%).
12 Game Industry Predictions: The Numbers Don't Lie!
The global gaming industry faces a transformative period leading into 2026, characterized by a structural shift toward high-fidelity, cross-platform experiences and a challenging environment for traditional mobile and PC sectors.
- The global player base is projected to grow by 5% annually, reaching 1.7 billion players by 2026, supported by the rising popularity of cost-effective PC handhelds.
- Western mobile gaming firms are losing market share to Chinese publishers, who currently occupy six of the top twenty global market positions.
- Venture capital investment in gaming is expected to hit record lows as exit multiples compress, shifting investor focus toward user acquisition financing rather than traditional project funding.
Everyone Got the EA Deal Wrong — This Was NEVER an LBO
The acquisition of Electronic Arts (EA) by the Public Investment Fund (PIF) represents a strategic shift rather than a leveraged buyout.
- The Public Investment Fund (PIF) holds 93% ownership of Electronic Arts, shifting the company's strategy from traditional game development toward a global sports, betting, and media super-platform.
- PIF’s long-term vision for EA centers on integrating interactive gaming with live sports rights and predictive simulation technology, though current management lacks the media-industry expertise required for this transition.
- Large-scale media conglomerates, such as those bidding for Warner Brothers Discovery, are deprioritizing gaming divisions in favor of volume-based streaming and algorithm-driven retention metrics.
Hard Truths About Co-Founders, Capital, and Competition with Appcharge's Founders Roei and Maor
Founding a successful startup requires a synthesis of deep personal partnership, strategic transparency, and a relentless focus on core competencies.
- Founders should prioritize achieving specific performance milestones to prove market viability before seeking external capital, as premature fundraising often hinders strategic focus.
- A pre-existing friendship between co-founders is a critical foundation for managing the high-pressure environment of scaling and converting inevitable conflict into productive growth.
- Startups gain a competitive edge by positioning specialized external tools as more efficient alternatives to internal infrastructure, allowing game developers to focus on core product development rather than maintenance.
Leveling Up for the New Reality: The Gaming Report
The report examines the global gaming market’s evolution from 2017 to 2028, highlighting a post-pandemic correction that has shifted growth expectations from double-digit rates to modest expansion.
- AAA development budgets surged 360% between 2012 and 2023, while the volume of AAA title releases dropped by 73%, signaling a shift toward fewer, more expensive productions.
- Global gaming revenue grew at a 1% CAGR from 2017 to 2023, reflecting a post-pandemic correction that has moved the industry from double-digit growth to modest expansion.
- Mobile revenue is increasingly driven by in-app advertising, which now accounts for up to 31% of the segment's total share.
Meet the developer behind Bradley The Badger, The Game Awards’ most bonkers reveal
Day for Night, a game development studio founded by industry veterans Davide Soliani and Christian Cantamessa, recently debuted their upcoming title, Bradley the Badger, at The Game Awards.
- Day for Night, a studio founded by Mario + Rabbids and Red Dead Redemption veterans Davide Soliani and Christian Cantamessa, has debuted its first title, Bradley the Badger.
- The studio operates with a lean team of approximately 24 employees, prioritizing an agile, collaborative structure over the fragmented models typical of AAA development.
- The project has successfully secured funding from 1Up Ventures and Krafton, despite the current challenging global economic climate for game development investment.
2022 Member Survey Report
The blockchain gaming industry experienced a period of significant structural evolution and resilience throughout 2022.
- Despite a broader market downturn in 2022, the blockchain gaming sector saw an 85% increase in daily active wallets and a 37% rise in on-chain transactions.
- Venture capital investment in web3 gaming and metaverse projects reached $7.6 billion in 2022, with nearly 90% of industry professionals intending to remain in the space.
- Developers are shifting strategy away from play-to-earn models toward gameplay quality and long-term sustainability, utilizing hybrid monetization that blends traditional mechanics with digital asset ownership.
State of the Industry Report: 2025
The blockchain gaming industry is undergoing a fundamental transition from speculative, token-driven models toward a disciplined, product-led future.
- Blockchain gaming funding has contracted significantly, falling from over $10 billion in 2022 to approximately $293 million in 2025.
- The industry is shifting from speculative, token-driven models toward a product-led approach that prioritizes high-quality gameplay and invisible blockchain infrastructure.
- Stablecoins have become a critical settlement layer, reducing transaction friction and volatility to improve player adoption.
Square Enix Next: That Excitement Once Again
Square Enix’s recent performance review exposes a persistent decline in revenue growth and profitability over the past three years, with operating income falling 32% and ROE dropping 61%.
- Square Enix has experienced a significant financial decline over the past three years, marked by a 32% drop in operating income and a 61% decrease in return on equity (ROE).
- Core gaming segments are underperforming, with HD and SD game revenues falling 4% and 5% respectively, while MMO licensing remains the only growth driver at +11%.
- Operating margins for HD and SD segments remain inefficient at 35–40%, and SG&A costs exceed industry norms by 5–6 percentage points due to an oversized sales force.
🚨📢 BREAKING NEWS: PIF running out of cash? Applovin surge, Kingshot explosive growth
The mobile gaming industry is currently navigating significant shifts in investment, user acquisition (UA) strategies, and market dominance.
- The 4X strategy title King Shot has generated over $542 million since its February 2025 launch, with monthly earnings surging 1,500% through November by using casual mechanics to lower customer acquisition costs.
- AppLovin is rapidly gaining market share in the advertising landscape, significantly narrowing the gap with Apple Ads on the iOS platform according to the 2025 AppsFlyer Performance Index.
- Reports suggest Saudi Arabia’s Public Investment Fund (PIF) is slowing new capital deployment, which may stall industry M&A activity and limit exit opportunities for gaming companies.