The Spanish video game company PlayGiga registered a net profit of 35.53 million euros in 2019, compared to losses of 1.91 million the previous year, after selling its assets to Facebook at the end of that year, according to the accounts of the signature deposited in the commercial register. The tech giant acquired Madrid-based PlayGiga to boost the lucrative cloud video game business.
The acquisition amounted to about 70 million euros, according to the newspaper reported at the time Five days. Later, the Spanish company sold its gaming-related assets to another Facebook subsidiary for 62 million. In the end, the result of PlayGiga, which in its accounts closes its commercial activity, amounted to 47 million gross in 2019, 35.53 million after taxes.
PlayGiga was founded in 2013 in Madrid with an offer of more than 300 video games to digital media and telephone operators. Its activity spread from Spain to markets such as Argentina, China and the Middle East. It is one of the first companies to demonstrate services in streaming of videogames. Its game distribution platform allows you to play from your computer and television, without having to buy games or consoles and without the need for downloads, installations or updates, because they are processed in the cloud and under subscription.
Video games is one of the markets with the highest growth expectations. Global revenue from this industry will double to $ 198 billion in 2024 compared to 2016, according to estimates by consultancy Activate Inc. Most of the growth will come from mobile games. Big technology like Apple, Microsoft and Facebook are betting on this business. The next key step is going to be virtual reality. Many digital activities – shopping, meeting people and live events – will take place within video games in the coming years, according to experts.
The purchase of PlayGiga is part of Facebook’s efforts to expand its business in video games and advance the diversification strategy of its business, heavily based on advertising. on-line. The social network has seen a business niche after detecting that there are more than 700 million users who play with game content every month on-line. In this context, the acquisition of the manufacturer of virtual reality headsets Oculus in 2014 is explained.