Metaverse Pioneer Improbable Sells Multiplayer Group in £76.5M Deal as Web3 Games Struggle

BeInCrypto2023/12/18 09:53

By:By Kyle Baird 18 December 2023, 09:15 GMT+0000Updated by Kyle Baird 18 December 2023, 09:15 GMT+0000

Metaverse company Improbable has divested one of its key gaming ventures, The Multiplayer Group (MPG), to Keywords Studios for a substantial £76.5 million ($97.1 million). The deal is surprising, considering that the metaverse and web3 sectors have been struggling as of late.

Keywords Studios is primarily known for developing games for third-party developers. The acquisition of MPG bolsters Keywords’ position in the gaming industry.

Improbable Sells Gaming Venture to Keywords

However, the acquisition came at a time when Keywords Studios was experiencing financial shifts . Despite its aggressive acquisition strategy, earmarking 91.9 million euros ($100 million) for new takeovers, Keywords has witnessed a significant drop in its shares, approximately 49% year-to-date.

This spending spree has led to a transition from a net cash position to a net debt of €11.4 million as of June 30, 2023.

Are the Metaverse and Web3 Gaming Niches Past Their Prime?

Improbable’s decision to sell MPG hints at a broader trend affecting the metaverse and web3 gaming sector .

A recent study reveals a high failure rate for web3 games , with 75.5% of the 2,817 web3 games launched from 2018 to 2023 not succeeding. Furthermore, this statistic underscores the volatile nature of the emerging web3 gaming market and the challenges companies face in this space.

How GameFi is going. Source: CoinGecko

The metaverse sector is still growing and evolving. The strategies of companies like Improbable and Keywords Studios could potentially shape the future of gaming and virtual world experiences.

All in all, the potential of the metaverse and a decentralized web is vast. Their best use cases and products associated with these industries will need time to grow.

Read more: Web2 vs. Web3: What’s the Difference?

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
This article was initially compiled by an advanced AI, engineered to extract, analyze, and organize information from a broad array of sources. It operates devoid of personal beliefs, emotions, or biases, providing data-centric content. To ensure its relevance, accuracy, and adherence to BeInCrypto’s editorial standards, a human editor meticulously reviewed, edited, and approved the article for publication.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.