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What do venture capitalists see when they look at games?
Kickstarter has gained a great deal of traction lately, but by and large new games are still funded the same way they've always been funded: by venture capitalists willing to shell out money in hopes of seeing a return on investment. That being said, the games industry looks at venture capitalists more as fountains of money than actual people, a necessary evil at best. A new piece penned by Jeremy Liew of Lightspeed Venture Partners sheds some light on what goes on behind the scenes when capitalists are approached for funding. Liew makes a point of mentioning that one of the features he looks for is the idea that the studio can turn out another good game after the first one, mentioning CCP Games and Jagex as both lagging behind. He also points out the power of community, noting that League of Legends gained much of its current popularity by completely taking over the DOTA community. While the piece is focused on gaming as a whole rather than just MMOs, fans of video games will no doubt find several points of interest within the full article.
Activision-Blizzard stocks drop amidst selloff rumors
Activision-Blizzard has certainly done well for itself over the past year. World of Warcraft may have seen a slight dip in subscriptions, but that hasn't made the company any less profitable. But rumors are swirling that owner Vivendi may be looking to sell off the company, either lowering its current 61% share or selling it off entirely. Vivendi will discuss its exact plans in its meeting with investors on June 22nd. In light of these rumors, shares of Activision-Blizzard have dropped 3.3%, while shares of Vivendi have grown 3.8%. Vivendi as a whole saw a net 28% drop in stock price over the past year, so the company is looking for infusions of cash, but considering Activision-Blizzard's upcoming titles (including the new World of Warcraft expansion, Mists of Pandaria), we can't help but wonder if selling the house might be a bit premature. We'll have more on this story and the impact for both companies as it develops.
