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Gabe Newell

Gabe Newell: The richest man in the video game business

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American entrepreneur Gabe Newell is the head of the Valve video gaming company.

Gabe Newell oversaw the creation of Valve’s digital distribution platform Steam, which debuted in 2003 and by 2011 had the majority of the market for downloadable PC games.

Gabe Newell
Image Source: forbes.com

His net worth was assessed by Forbes to be US$ 3.9 billion in December 2021, making him one of the richest people in the country.

Early Life

Early in the 1980s, Gabe Newell enrolled at Harvard University but left to work for Microsoft, where he contributed to the development of the initial iterations of the Windows OS. As the principal developer for the first three iterations of the Windows operating system for 13 years, Newell amassed a million-dollar fortune.

One of the main factors in Newell’s decision to leave Harvard was that he claimed to have learned more during his initial 3 months at Microsoft than he did at Harvard. At Microsoft, Newell oversaw the creation of a Doom port for Windows 95, which is credited with establishing Windows as a competitive gaming platform.

Success Story

On August 24, 1996, Newell and another colleague, Mike Harrington, left Microsoft to create the video game firm Valve, inspired by Michael Abrash, who departed to work on the game Quake at id. The first Valve game, the critically acclaimed and financially successful first-person shooter Half-Life (1998), was developed thanks to funding from Newell and Harrington.

Half-Life, a first-person shooter with a science fiction theme, was Valve’s first game. It was praised for its excellent graphics and seamless story, and it deservedly won multiple “Game of the Year” awards. In 2000, Harrington resigned, leaving Newell as the sole proprietor.

Half-Life 2 (2004) was developed by Valve with no timeline and a nearly unlimited budget, with Newell offering to contribute himself if necessary. He spent months creating Steam, a digital game distribution service, in the interim. The majority of Valve’s revenue was derived from Steam, which in 2011 held between 50%-70% of the industry for downloadable PC games.

Forbes dubbed Newell “A Name You Should Know” in 2010 in part because of his work on Steam and connections with numerous important developers. The Academy of Interactive Arts & Sciences inducted Newell into its Hall of Fame in 2013. He was given the BAFTA Fellowship that March in recognition of his services to the video gaming industry.

With an assessed net worth of over 5.5$ billion, Newell was included in the top 100 richest Americans by Forbes in October 2017. According to a December 2021 Forbes assessment, Newell owned at least 25% of Valve and had a net worth of around 3.9$ billion. Newell was the richest individual in the video game industry as of 2021, as per Charlie Fish, author of The History of Video Games.

krafton

Krafton Inc, The Company Behind The Famous PUBG Game.

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Founded in 2007 as Bluehole, Krafton Inc. creates, produces, and markets home video games domestically and abroad. It provides games for consoles, smartphones, and PCs. It’s one of the most popular games is PUBG. Other popular games developed and published by Krafton are Mistover, Thunder Tier One, The Callisto Protocol, and New State Mobile.

About The Company

Krafton Inc. is a South Korean company that is in the business of developing and distributing video games. The company is renowned for creating TERA, PUBG: Battlegrounds, and NEW STATE Mobile, the latter two under its subsidiary PUBG Studios. The company was formerly known as Bluehole. In 2018, Bluehole underwent a reorganization to become a Krafton subsidiary. It is headquartered in Seongnam, South Korea.

History

Following PlayerUnknown’s Battlegrounds’ popularity, which resulted in funding from Tencent Holdings as well as studio expansion and acquisition, Bluehole decided to create Krafton in 2018 as a holding company for its video games operations. In April 2021, Krafton decided to launch its IPO. The company intended to raise US$5 billion at a valuation of US$27.2billion.The IPO launch took place on August 10, 2021, and although Krafton’s valuation declined from the initial list price at the end of a trade by 8.8%, it was still valued at US$19.32 billion.

Due to new limitations put in place by the Chinese government, shares of various Chinese and foreign videogame firms, including Tencent, the leading video game developer in China and a facilitator for foreign firms to release games in their country, decreased. Video games, mainly shooting video games, are perceived as “electronic drug” and a “spiritual opium” by the Chinese government because they are believed to encourage violence. Due to its high population density, China is a critically valuable market for video games, so video game firms like Krafton suffered greatly.

krafton
Image source: futurecdn.net

Subsidiaries

Since its inception, Bluehole has bought a number of development studios. On November 5, 2018, Krafton Game Union became the new parent company for all its subsidiaries. The popular subsidiaries of Krafton are Bluehole Studio, Striking Distance Studios, Dreamotion Inc, RisingWings, PUBG Studios, Thingsflow, 5minlab Corporation, and Unknown Worlds Entertainment. PlayerUnknown’s Battlegrounds (PUBG), one of the first battle royale games, was created by PUBG Studios (formerly PUBG Corporation), an internal studio of Bluehole. PUBG game set a new record in 2017 by selling $100 million before release copies in just 79 days. Due to concerns about data privacy, the Indian government banned PUBG Mobile in September 2020, along with several other apps made by Chinese companies, including Tencent Games. In order to relaunch the game in India, Krafton regained ownership of the game’s Intellectual Property (IP) from Tencent. In 2021, Battlegrounds Mobile India, a visually upgraded version of PUBG Mobile, was released for both Android and iOS. This time, Krafton, Inc. published the game.

Founder – Chang Byung-gyu

In 2007, Chang Byung-Gyu founded Krafton, initially known as Bluehole. Chang Byung-gyu started Bluehole Studio in Seoul in 2007. Along with seven other co-founders, Chang founded Neowiz in 1997. He later founded the search engine company, First Snow, in 2005 and sold that business in 2006. Tencent made a $500 million investment in Bluehole in 2018 for a 10% ownership, elevating the company to unicorn status. As per Forbes, Chang is one of South Korea’s seven gaming billionaires, with a net worth of over $2.9 billion.

CEO – Kim Chang-han

In 2020, Kim Chang-han was named the CEO of Krafton. Before that, he was the CEO of PUBG Corporation( now PUBG Studios). He started his career in the gaming industry in 2000, engaging in production, development, and engineering for a couple of studios before joining PUBG Corporation. He has attended the Korea Advanced Institute of Science and Technology, where he received a Ph.D. in computer science.

Sega Corporation

Sega Corporation – World’s Most Prolific Arcade Game Developers.

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Sega Corporation is a Japanese-Based Multinational Video Game and entertainment firm. It is headquartered in Shinagawa, Tokyo, and was founded in 1960. It has its other subdivisions overseas. One is established in Irvin, California, known as Sega of America. The other is Sega Europe, located in London. It is a subsidiary of Sega Group Corporation (Sega Sammy Holdings) which develops video game consoles. It has a division called Saga Games which develops arcade and home video games. They were different entities that merged in 2020. It has achieved a revenue of 247.7 billion Japanese Yen in 2020. They have about 3,000 employees working in the firm. Key people who contributed a lot to the corporation are Haruki Satomi (Chairman and CEO), Yukio Sugino (President and COO), Shigeru Yamashita (vice-chairman), Ian Curran (President, Sega of America), and Gary Dale (President, Sega Europe).

History

Sega Corporation was founded on 3 June 1960 by American Businessmen Martin Bromley and Richard Stewart as Nihon Goraku after it acquired the fortune of its predecessor, Service Games of Japan. After five years, its name was changed to Sega Enterprises, after the acquisition of a coin-operated game importer, Rosen Enterprises. The firm created its first-ever coin-operated game in 1966 which was called Periscope. But In 1969, it was sold to Gulf and Western Industries. In the early 1980s, it experienced a downturn and initiated the development of video game consoles such as SG-1000 and Master System, but there was great competition with companies like Nintendo Entertainment System in the market.

Sega Corporation
Image source: www.spieltimes.com

Subsidiaries

It has various subsidiaries.

  • Amplitude Studios
  • Atlus
  • Creative Assembly
  • Hardlight
  • Ignited Artists
  • Play Heart
  • Relic Entertainment
  • Sports Interactive
  • Two Point Studios
  • TMS Entertainment

Renowned Products

The firm has developed numerous multi-million-selling game franchises, which include Total War, Sonic the Hedgehog, and Yakuza Sonic. It has developed several long-running series such as Virtua Fighter and Initial D Arcade Stage. It is mainly renowned for its game consoles, creative approach, and innovative thinking.

Acquisition

In 2001, the firm stopped the production of game consoles and decided to become a third-party developer and publisher. In 2004, it was acquired by Sammy Corporation. After that, its profit started increasing and its name was changed to Sega Games Co., Ltd. The different domains like entertainment, arcade, and toy were divided into various companies which merged in 2020 as Saga Corporation.

Achievements

Sega Corporation is known as the world’s most abundant arcade game developer. It has more than 70 franchises, 500 + games, and 20 arcade system boards since 1981 and was recognized by Guinness World Records for the same. The Sega Genesis is one of the best consoles.

Founders – Martin Bromley, Richard Stewart

Martin Jerome Bromberg also known as Martin Jerome Bromley was born on 8 August 1919 and died on 7 September 2008 at the age of 89. He was a great entrepreneur and was one of the primary founders of Service games, a predecessor of Sega before its merger with Rosen Enterprises in 1965. He worked in coin-operated amusements with his father at Standard Games and also participated in World War II with his duty at a shipyard.

Richard Stewart was born on 5 January 1995 in Texas, United States, and died at the age of 74. He served as a key executive member of Sega and was a great American businessman.

CEO – Haruki Satomi

Haruki Satomi is the Chief Executive Officer of Sega Corporation born on 11 January 1979 in Tokyo, Japan. He has been a key executive member of Sega Sammy Holdings, Sega Networks, and Sega of Japan. He is a Japanese Businessman and holds a Bachelor’s degree in Arts.

Imangi

IMANGI STUDIOS- THE COMPANY THAT BUILT ONE OF THE MOST FAMOUS MOBILEPHONE GAMES

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Apart From the hardcore game developers and video game lovers, we all love a little bit of fun gaming. Many of us also play games on mobile phones to kill time. Nowadays, kids also love playing video games. Among all the mobile phone games we have been playing since childhood, Temple Run is one of the tops. Temple Run has a very wide fan base and it is the topmost game ever launched by Imangi Studios. Imangi Studios is an American-based video game company. It develops video games for Windows, Android, and iOS phones. Natalia Luckyanova and Keith Shepherd the famous husband-and-wife team founded the company in 2008.

About the Founders

Natalia went to Harvard University to study Physics and Chemistry for her bachelor’s degree. After graduating in 2003, she went to Boston University and completed her master’s in Computer Science. Her career started as a Software Engineer for Vecna Technologies followed by a Senior Consultant at Appian Corporation. In 2008, she joined The Advisory Board Company as a Technical Business Analyst and carried out her game developing project simultaneously. After a year, she left the company and co-founded Imangi Studios.

Keith Shepherd, husband of Natalia worked in the computer industry for many years. He along with his wife founded Imangi studios. And, the release of Temple Run helped them make billions. He is the CEO of Imangi Studios.

The idea of a new company

Natalia and Keith always wanted to start their company. They didn’t want to go for a conventional 9to5 job and wanted to think something out of the box. Natalia said it was right after they got married, they decided to develop a gaming company. The couple was very intrigued by the products of Apple which pushed them a bit further so they finally took the big decision.

Keith is a huge fan of Apple. So, when the company announced that they are entertaining outside developers who can develop apps for it, the two decided to give it a shot. But, since the couple was newly married, job security became a very huge factor. So, while Keith dedicated all his time to Imangi while Natalia continued her job to support the family.

The first game

Back in 2008, when Apple decided to give a chance to the outside developers, the couple saw it as a great opportunity. Thus, both of them designed their first game which is known as Imangi. It was a type of word puzzle and very soon it was released in the App store of the company.

Since the first game worked out just fine, they deiced to hire an additional member of the team. Kiril Tchangov, an artist joined Imangi, and together they continued building games for iPhone. Imangi’s first breakthrough was when the company released Harbor Master, a sea traffic game.

History and Success of Temple Run

After the sale of Harbor Master started reducing slowly, Imangi studios came up with Temple Run. The development of Temple Run was to experiment on different ways of controlling the characters in a three-dimensional perspective. Imangi’s previous game, Max Adventure created a problem for the touchscreen users to control it. So, this time they wanted to create something better which finally led to the designing of Temple Run.

After the couple was sorted with the movements of the main character, the next tough decision was coming up with a proper theme. Since the main character was only running, they decided to make a maze theme in a jungle environment. Keith also said that they drew inspiration for their game theme from the Great Wall of China.

This is how the team builds most of its games. First, they try to define the characters, and eventually, everything falls into place surrounding them. But, the hardest thing about developing a game is adding the fun element in it. Because there is no rulebook for creating anything fun or mystery about a game. So, that needs brainstorming and experimenting with by hit and trial method. What the audience might like or dislike is often the hardest yet most important question to be answered.

Before, releasing Temple Run in the market, the company has moderate expectations. But, they were surprised to witness the high demand and positive feedbacks. It was released in 2011, and by mid-2012, the game has more than 70 million downloads.