TechCrunch sources report that not only has Google quietly invested somewhere between $US100 and $US200 million dollars in FarmVille and Mafia Wars creator Zynga, the developer’s games will form the base for Google Games, launching later this year.
VentureBeat reports today that publisher SouthPeak (I was just there yesterday seeing Ninjatown) has picked up $AU 13.57 million in private investments. It’s worth pointing out, as Dean Takahashi does in his story on the financing, that rarely do console and PC video game publishers pick up venture capital – most VC dollars these days are going to more nouveau-media stuff like online games, social networks, virtual worlds and so-called “Web 2.0″.
It’s no secret that companies from all over the world are dumping money into China, both by setting up their own offices and studios, and by partnering up with local Chinese companies to get work done and games made. The promise of lower production costs and a foothold into the quickly growing, potentially extremely lucrative Chinese market are drawing firms and venture capitalists. Now that art and design elements coming out of China are reaching “world-class levels,” the fact that Chinese companies have a better handle on Chinese culture (my favourite recently seen job posting for a game planner included the requirement of a degree in Chinese history, literature, or related fields) and local markets means that many companies are formidable competitors and partners indeed.