As I strolled through the Oculus in downtown Manhattan yesterday, I couldn’t help but notice a guy with thick-rimmed glasses, typing away at a table with just a keyboard and mouse. No laptop, no tablet—just some fancy eyewear. My knee-jerk reaction was to think, “Who is this guy and why isn’t he working from home like the rest of us?” I mean, how productive could someone really be in such a bustling hub of tourists and commuters in New York City?
But then it dawned on me: the next tech wave isn’t just about functionality—it’s also about fashion. Apple already set the stage years ago by transforming its stores into sleek, stylish hangouts. Nowadays, tech is as much a status symbol as it is a utility, a marker for social standing and, potentially, attraction. Meta seems to be catching onto this reality more and more.
Watching Zuckerberg at the recent Meta Connect event was like seeing a transformation. Gone is the oddball techie who first donned flip-flops and hoodies, and later awkwardly wore a suit at Senate hearings. Now, he’s relaxed, wearing an oversized sweater and sporting an F.P. Journe Chronomètre Souverain. This seems to signal that Meta, through its founder, is finally coming of age. The fear of missing out that plagued the company since the advent of smartphones is giving way to a fresh, confident outlook.
After a decade of focusing on virtual reality, we’re now seeing a more tangible, distinctive product category from Meta. No longer imitating competitors, Meta seems to be forging its own path. Unlike the VisionPro, Meta’s “Orion” glasses—a wireless set that projects holograms—represent a more accessible take on what the future could look like.
For virtual products to gain real-world traction, they need to be cool. To that end, I wouldn’t be surprised to see Meta making a significant acquisition in the fashion industry next year, and bringing on board senior leaders with luxury retail and product design experience. After all, Mark has already upgraded his wardrobe.
On a separate note, a lot has been happening in the gaming world. Recently, Playtika announced its acquisition of SuperPlay for $700 million upfront, with potential earnouts reaching up to $1.25 billion. This move highlights strategic mergers and acquisitions in a highly competitive mobile gaming market. Playtika, founded in 2010 and based in Herzliya, Israel, has grown into a major player in mobile gaming, specifically in free-to-play casual and social casino games. The company went public in 2021, and their data-driven approach to game development and user acquisition has established them as a leader in the genre.
However, Playtika’s recent financial performance shows a decline. Their recent quarterly report indicated $627 million in revenue, down 2.5% year-over-year, and their gross revenues for the last twelve months totaled $2.681 billion, also reflecting a decrease.
The acquisition of SuperPlay is expected to change Playtika’s trajectory. The substantial earnout structure indicates the company’s belief in the future earnings potential of SuperPlay’s main titles, Dice Dreams and Domino Dreams. This approach has worked for them before, with successful acquisitions such as June’s Journey and Solitaire Grand Harvest, which combined have generated $1.2 billion in revenue after accounting for acquisition costs.
Despite these past successes, the percentage of paying players is currently declining. The average number of daily paying users fell from 307,000 to 298,000 year-over-year, though average spending per daily active user has increased slightly.
Opinions among stock analysts are divided on whether the acquisition of SuperPlay will rejuvenate Playtika. Some believe this addition will propel the company forward, continuing its streak of successful acquisitions. Others are skeptical, noting that SuperPlay’s current spending on user acquisition is significantly higher than Playtika’s.
CFO Craig Abrahams suggests that 2023 through 2025 will be critical growth years, with long-term profitability expected beyond 2026. However, I remain unconvinced. The gaming industry now prioritizes distribution innovation over expanding portfolios through acquisitions. As the market faces softer demand and increased marketing costs, merely scaling up might not enhance publishing economics.
Meanwhile, Ubisoft is facing its own set of challenges. After pulling out of the Tokyo Game Show, the company has delayed the release of Assassin’s Creed Shadows and lowered its financial forecasts. This delay contradicts their earlier stance that announced delays were inconsequential to their financial performance. The new delay has impacted Ubisoft’s financial outlook, further denting investor confidence, especially following the lukewarm reception of their recent title, Star Wars Outlaws.
Ubisoft’s recent statement indicates that while Assassin’s Creed Shadows is feature-complete, they require more time to polish the game, influenced by feedback from the Star Wars Outlaws release. This delay has created a crucial juncture for Ubisoft, as its shares have plummeted to a 10-year low.Ubisoft has announced a three-month delay for Assassin’s Creed Shadows, pushing its release date to February 14, 2025. This new timeline might improve the game’s chances for success but also means it will be launching close to Sony’s upcoming exclusive, Ghost of Yōtei, which has already piqued interest with its Red Dead Redemption-like trailer.
Along with the delay, Ubisoft has revised its fiscal 2025 guidance, cutting net bookings expectations to around $2.16 billion—a substantial drop from last year’s $2.66 billion and well below prior forecasts. The second-quarter projections also saw a downward adjustment, now expected to be between $388 million and $411 million, a significant decrease from the previously estimated $555 million. These changes highlight the intense pressure Ubisoft is under to regain financial stability in a competitive market.
In light of these challenges, Ubisoft’s Executive Committee is reevaluating its strategies to improve operational efficiency. CEO Yves Guillemot noted that beyond immediate actions, the committee is reviewing long-term execution to better navigate current difficulties. This likely signals upcoming layoffs, as CFO Frederick Duguet mentioned potential headcount reductions as part of an ongoing cost-cutting initiative.
Despite these strategic shifts, investor confidence remains wobbly. The big question is whether Ubisoft can streamline its business operations to achieve greater success. Even after more than a decade of digital transformation and a shift towards a service-based publishing model intended to mitigate risks in blockbuster game development, Ubisoft faces an uncertain future.
What continues to sustain Ubisoft is its rich catalog of intellectual properties and its distribution deal with Microsoft. For the company and its investors, 2025 cannot come soon enough.
Meanwhile, Gamurs Group has also been making adjustments. After a round of layoffs in July, the company let go of another 30 employees this week. This pattern underscores a growing concern—the decline of professional reporting in interactive entertainment could negatively impact the industry’s overall risk profile for both investors and publishers.
On a lighter note, a recent Oxford University study revealed that 72% of PowerWash Simulator players experience an emotional uplift during gameplay. It appears that even Doja Cat may have been on to something with her gaming interests.
I’ll be hitting the road next week and will share highlights from Tim Sweeney’s thoughts on off-platform mobile app stores, as well as insights into where venture firms are placing their bets for the future. Stay tuned for more updates.
