Analysts express doubt on commercialization as Improbable offloads gaming venture for $97m.
Improbable, a metaverse company backed by SoftBank, has made a significant sale of one of its gaming projects to an Irish video game developer. The Multiplayer Group (MPG), a multiplayer games developer owned by Improbable, was sold to Keywords Studios, an Irish video game industry services company, for $97.1 million. Although this sale aligns with Improbable’s broader venture builder strategy, some analysts have expressed concerns about the company’s ability to effectively monetize its technology due to perceived technical limitations and high costs. Greg Martin, co-founder and managing director of Rainmaker Securities, commented that Improbable’s business model remains uncertain and it is unclear whether they have a viable model going forward.
However, Improbable’s CEO, Herman Narula, clarified that the sale of The Multiplayer Group does not indicate a retreat from the gaming sector. Narula stated that the sale was part of their venture builder strategy and that the London-based company is not selling any technology or ceasing to collaborate with game companies. In fact, Improbable has been increasing its presence in the metaverse space, organizing 30 metaverse events in 2023 alone, with plans to elevate that number to 300 events in 2024. The company aims to create a network of sovereign metaverses. Since its establishment in 2012, Improbable has received support from various investors, including venture capital firms and SoftBank.
In a separate development, lawmakers in the European Union (EU) are advocating for the EU to take a leading role in the development of virtual worlds. The goal is to strengthen EU businesses and reduce reliance on non-EU countries for technology. This initiative follows a vote by the European Parliament’s Committee on internal market and consumer protection, which signals a strategic shift towards embracing the metaverse as a crucial component of Europe’s digital future. The committee’s report emphasizes the need for a robust regulatory framework to support the development of virtual worlds, considering that most companies in this sector are located outside the EU.
