SoftBank-backed company Improbable, known for its work in the metaverse, has recently sold one of its major gaming projects to an Irish video game developer. The Multiplayer Group (MPG) was acquired by Keywords Studios for $97.1 million, as reported by CNBC.
While this sale fits into Improbable’s larger strategy as a venture builder, some analysts have expressed concerns about the company’s ability to effectively monetize its technology. They point to perceived technical limitations and high costs associated with Improbable’s ventures.
Greg Martin, co-founder of Rainmaker Securities, commented to CNBC that Improbable’s business model remains uncertain, raising doubts about its sustainability moving forward.
CEO Herman Narula, however, clarified that the sale of MPG does not indicate a complete exit from the gaming industry. He emphasized that the London-based company is still committed to working with game developers and is not abandoning its technology.
Improbable has been active in the metaverse space, hosting 30 events in 2023 with plans to increase that number to 300 in 2024. The company aims to establish a network of metaverses, building on its foundation since its founding in 2012 with backing from various investors including SoftBank.
In a separate development, EU lawmakers are pushing for the EU to take a leading role in the development of virtual worlds. This initiative, stemming from a vote by the European Parliament’s Committee on internal market and consumer protection, underscores a shift towards embracing the metaverse as a key element of Europe’s digital future.
The committee’s report highlights the need for a strong regulatory framework to support the growth of virtual worlds within the EU, as many companies in this sector are currently based outside the region.