According to a recent report, Meta, the parent company of Facebook, recently invested $40 million in the mobile gaming organization Playco. This information was first revealed by Axios.
This investment allows Playco to expand its user base to as many platforms as possible. Additionally, Meta will introduce a New Product Experiences division to the company that will allow Facebook to experiment with new apps that align with Playco’s future plans.
Playco is a Tokyo, Japan-based mobile gaming company that was founded in September of 2020 by Michael Carter. Some of the games released by the organization include Ask Away and The Walking Dead Life.
2021 was an up-and-down year for Meta. The organization was able to generate $33.7 billion in revenues during the fourth quarter of last year. However, the company also reported its Reality Labs division recorded an operating loss of $3.3 billion during the quarter.
The Profit‘s Take:
They’ve said gaming is incredibly important to the metaverse. So, why are you investing in an outside company? Why not acquire or build your own shop? As the number of game devs being acquired continues to go up, the price tag for these organizations will increase. Furthermore, if the funding for these gaming firms gets better, then it’s less likely that these businesses will be sold at reasonable prices or valuations. This is a hot market right now. Given the conviction around the metaverse and gaming, I am surprised Meta has not made a bigger push to make hires or acquisitions from a developer standpoint.
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