“We’re thrilled to welcome PlayGiga to the Facebook Gaming team,” says Facebook.
Facebook acquires the Spanish gaming company PlayGiga in an effort of expanding its reach to the gaming industry and outside marketing advertising. Facebook confirmed the purchase to CBNC following the report of Cinco Dias, a business publication that claimed and reported that the deal was around €70 million (around $78 million).
Expansion to the gaming industry
The social media giant claimed that more than 700 million users each month are engaged with gaming content. “It’s easy to assume that because it’s gaming and because Facebook is so big that perhaps this is a niche,” says Vivek Sharma, Facebook’s gaming head of product during an interview last month.
Thus the launch of light games for Facebook and Messenger apps called “Instant Games” in November 2016. The games are built in the HTML 5 software stack. This was followed by “Facebook Gaming” which allowed users to live-stream their gameplay to others across the social networks. Due to this new addition to Facebook’s features, the streaming option has become a rival to Amazon’s Twitch.
Other companies are also starting to invest in the marketing niche due to the large audience that it can reach. Several other tech and gaming companies are also rolling out their respective gaming services.
PlayGiga plays a vital role
Instant Games was a bit limited and only offered HTML5 services. This particular service is outdated as opposed to the trend of the current gaming industry. While it allows users to access games across multiple devices with no download required it is still is not enough to sustain gamers’ needs and requirements of high-quality gaming.
PlayGiga, a proper cloud gaming company, was tap to address this gaming issue. It will cater to a wider variety of games in a high-quality interface. PlayGiga posted in a statement that they are continuing to work in cloud gaming, now with a new mission. It could mean that its new partner, Facebook, is working a cloud gaming service where it will play a part in that endeavor.
Intense competition in cloud-based gaming
Cloud-based gaming is the new trend of games “live streaming” after music and video. Facebook’s acquisition of PlayGiga’s services is timely as other tech giants such as Apple and Google have also released their own cloud video game streaming services, Arcade and Stadia. Microsoft has also previewed its xCloud game streaming service.
It’s still unknown if companies are willing to put up ads for their gaming services to reach out to a wider audience. This is a new avenue for marketers and brands if gaming services will sell out ad placements as this makes it possible for them to reach a new niche.