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Why acquisitions fail, Netflix Games’ investment plans, and the big H1 2025 genre analysis | Week in Views

July 26, 2025
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The video games {industry} strikes rapidly and whereas tales could come and go there are some that we simply cannot let go of…
So, to present these significantly thorny matters an extra going over we have created a weekly digest the place the members of the PocketGamer.biz crew share their ideas and go that little bit deeper on a number of the extra fascinating issues which have occurred in cell gaming prior to now week.

Craig Chapple

Head of Content material

Can India’s Nazara actually crack $10 billion?
I had a terrific chat with Nazara CEO and joint MD Nitish Mittersain concerning the firm’s M&A spree. One quote that stood out was:
“I’ve at all times had a perception that one of many largest failures in M&A is brought on by overestimating synergies on the time of acquisition, overpaying for the synergies, which can by no means materialise.
“And likewise, since you’ve sort of visualised so many synergies, proper from day one of many acquisition you begin pushing the administration of the acquired firm simply to give attention to synergies and ship on them, which sort of defocuses them from the core enterprise in itself.”
We’ve seen it numerous occasions with regards to cell. Huge publishers getting in on cell late and paying over the value, whereas additionally probably not being all in on the platform.

Then typically you get spurious claims of how IPs could possibly be tailored to cell with none actual consideration of the particular groups and experience they’re shopping for.
King runs one of the crucial profitable recreation franchises on the planet – however it’s going to by no means efficiently adapt Microsoft and Activision’s core IPs, at the very least based mostly on historical past. EA’s buy of Glu, properly, what occurred? Removed from being the inspiration of a strategic enlargement of the writer’s cell operations, Glu’s complete enterprise appeared to fade away inside months.
As we’ve seen over the previous few years with mass layoffs, and actually over many years of M&A, a shocking lack of awareness over what’s really being acquired can result in horrible outcomes.

Netflix plans to ramp up gaming funding
We all know that within the grand scheme of issues, Netflix’s investments in its video games division is barely a small fraction in comparison with the agency’s efforts elsewhere, however the firm is saying it is able to ramp that up. 
Over the previous yr or so, Netflix Video games has seen modifications to its technique and shifts in management. Regardless of providing video games for a number of years now, it nonetheless seems like Netflix Video games may be very a lot so within the early phases of discovering precisely the place it suits and what it needs to realize. 

That’s not as a lot of a destructive because it sounds, this stuff take time, years even and I believe this was at all times going to be the case when Netflix began providing video games contemplating that’s not what the platform was initially made for. Simply since you’re a large at streaming exhibits and flicks it doesn’t imply your customers magically need to use that very same platform for video games.
Nevertheless, on the identical time I do perceive the thought course of behind the world’s largest streaming service wanting to supply video games. It is a large market, and for customers, it does add further worth to their subscription. However is that actually sufficient? For now, possibly it’s. However I am intrigued to see what this extra funding in its video games division finally ends up wanting like.

H1 2025 style evaluation: Cellular technique video games surge to $10.6bn as RPG income tumbles
I used to be about due for one more knowledge dive, and this time round my search had me analysing every style on cell.
My findings? Effectively, in response to AppMagic estimates, the technique style snatched gold from RPGs with $10.6 billion in gross participant spending throughout H1 2025. This made technique not solely the most important style globally, but in addition the third fastest-growing, up 26% year-over-year.
RPGs, in the meantime, fell by round 11% to $9.3bn.

Rounding out the highest three was the puzzle style, which surpassed on line casino this time round. The style’s high three video games alone comprised 30% of all puzzle participant spending throughout H1 2025.
Amongst different insights, recreation collections noticed the most important rise globally at a 138% improve Y/Y, regardless of remaining the smallest style. Though, within the US, the style noticed a a lot smaller improve – with arcade as an alternative taking the crown for best spending surge.
Because the genres shift, new stars rise, and others fall, it’ll be fascinating to observe how different gamers take their very own spin on technique, simply as RPG mechanics have turn into commonplace industry-wide.



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Tags: AcqisitionsAcquisitionsAnalysisBigFailGamesgenreGenre GrowthIndiaInvestmentM&ANazaraNetflixplansRevenueViewsWeek
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