Kwalee Acquires Stake in Devolver Digital

UK-based hyper-casual games publisher Kwalee has acquired a minority stake in Devolver Digital. This is a strategic investment in a market that Kwalee is keen to conquer.

Kwalee announced a year ago (in German) that it was looking to increase its efforts in classic PC and console games. The British company has now become an investor in the segment. Kwalee has acquired a 3.58 per cent stake in Devolver Digital by participating in Devolver's latest equity placement.

"I would like to thank Harry and the Devolver team for giving us the opportunity to invest in such a fantastic brand and category defining games", commented Kwalee founder David Darling on the investment. Darling is Commander of the Order of the British Empire and best known in the industry as co-founder of Codemasters.

With Kwalee in 2011, Darling entered the then barely recognised market segment of hyper-casual games, in which games with an initially small scope or few levels are launched as often as possible at the lowest possible cost. Depending on how the public responds, the games are then either dropped or continually developed and monetised.

Last year, Kwalee announced that more than one billion Kwalee games had been downloaded since its inception.

At the same time, the company announced that it would also be focussing more on PC and console games in future. An initial success was achieved with Robobeat, which received almost universally positive reviews from the public. According to the company, there are ten more promising PC and console games in the pipeline.

"There is no doubt conditions in the gaming industry remain challenging in the near-term but I am confident in the sector’s long-term future. However, the economics of the industry are changing, with an increasing need for scale and financial strength in an industry where access to funding has all but dried up.  Kwalee has ambitious plans for growth and will invest and work with the leading players in the industry as we pursue our mission to make the most fun games for the world’s players", so Darling.

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