- GiG shuts down its gaming studio for posting negligible revenue.
- €250,000 in monthly savings expected.
- More changes expected from the company’s strategic expansion plans.
On Monday, renowned online gambling technology provider Gaming Innovation Group (GiG) announced that it had reached a “strategic decision” to shut down its GiG Games studio. According to the company’s officials, the proprietary game studio is being closed with immediate effect because its financial performance did not meet their expectations.
The GiG Games studio was debuted at the end of 2017 which means that it has been operational for two years. At the time of its launch, the company had very high hopes for the new venture – they envisioned producing at least six new proprietary games annually. However, these plans fell short and by October 2018, only a single game was delivered – this was the very first game. Since then, only four more titles have been added to the studio’s portfolio with the studio’s revenue falling well below what the executives had expected from the studio.
All of the 25 employees of the proprietary studio have been given termination packages due to the closure of the operation. Three of the employees will be retained to maintain the current studio until the end of 2019 after which the studio will officially stop operating. Also, the four in-house games that resulted from the studio’s time in operation will still be offered through GiG’s in-house brands as well as B2B clients.
Why GiG Lost Faith in the Studio
According to Richard Brown, the chief executive officer of GiG, the decision to close down the game studio was part of the company’s strategic initiatives that were meant to reduce non-marketing related OPEX. It was also influenced by their “commitment to execution and bottom line earning.”
“I would like to thank everyone who has been involved in building our own games for their contribution and dedication to the Company,” the CEO said.
In essence, this means that the company plans to not only reduce OPEX but also concentrate focus on key strategic areas while at the same time developing the technology and the product. The goal is to make GiG achieve its full business potential as a “global partner and operator for strong brands in iGaming.”
By shutting down the studio, the gaming technology provider will be saving about €250,000 per month once the full effect is realized.
Despite this setback, GiG is still a prominent figure in the gambling industry. With a number of lucrative partnerships currently in place and several more in the pipeline, the company certainly has a lot going for it. GiG has made several significant changes in the recent past as part of its bid to extend its footprint across the world and many more changes could be coming in the near future. All in all, everything they are doing seems to be very strategic with the customers set to be the biggest beneficiaries.