The games are “free to play,” but they cost a hell of a lot to make.
To help with that, mobile game developer Outplay Entertainment has raised $5 million in its latest funding round. Oxford Capital led the investment, which also saw participation from venture firm Pentech and the Scottish Investment Bank. Outplay specializes in free-to-play apps for iOS and Android, and it has its headquarters in Dundee, Scotland — the city where Grand Theft Auto developer Rockstar North got its start. Mobile apps generated $16 billion in revenue last year, and Oxford sees Outplay as a good way to capture a piece of that.
Outplay has already released a number of mobile games. It specializes in free-to-play titles with in-app purchases. One of its biggest releases is Monster Legacy, which debuted as an App Store Editor’s Choice on Apple’s iTunes in a number of countries last May.
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The studio plans to use the influx of cash to bring in the people and resources it needs to develop a number of new games for launch around the world. Oxford will also work directly with the studio to guide its expansion attempt.
“We are delighted to be partnering with Oxford Capital in this next stage of our company’s journey,” Outplay chief executive Douglas Hare said in a statement. “Oxford Capital has already demonstrated some great insights into our business as part of the investment process.”
“We have for some time been seeking an appropriate opportunity to invest in the segment, but in a market with such a diversity of consumer choice it has taken a company of truly differentiated capability for us to commit,” Oxford Capital investment director Martyn Holman said. “Outplay has built an impressive portfolio of increasingly higher quality, commercially successful games. They have made significant breakthroughs in a crowded market space by building on each prior success.”
Outplay is the latest mobile developer to get a significant amount of cash to build a gaming empire on iOS and Andorid. In December, mobile-trivia startup QuizUp raised $22 million. In May, Kamcord, which makes a technology for recording gameplay videos on mobile, raised $7.1 million.
“The global games market is at an exciting point for any new investor. Market growth is accelerating, consumers are proliferating, device capability exploding, and in-game monetization opportunities are following in lock step. We look forward to embracing future opportunities with Oxford Capital on board”
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