Revenue for game studios is on the rise as strategic acquisitions are lined up.
Keywords Studios, an IT services provider for the video games industry, has announced two significant acquisitions amidst a remarkable revenue increase. Renowned Hollywood sound designer Scott Gershin and his Sound Lab team in Burbank, California, have transitioned from Technicolor to join forces with Keywords Studios. Additionally, the Brighton-based TrailerFarm is now part of the expanding Keywords Studios family.
The half-year results for the six months concluding on 30 June 2018 revealed an impressive 72 per cent increase in revenue, reaching €110.0 million. During this period, the company has also introduced Keywords Ventures, aimed at investing in cutting-edge technologies and services within the games market. Its inaugural investment, AppSec Test, an automated app testing solution for GDPR compliance, was made in June.
Sound Lab at Keywords is a prominent player in the video game and immersive entertainment markets, including VR and AR, offering sound services for both movies and streaming content. To support the Sound Lab team, Keywords is investing in advanced production equipment to enhance a sound design studio in Burbank. With more than 30 years of sound design experience, Scott Gershin and his team have contributed to numerous bestselling video games such as Final Fantasy XV, Resident Evil, and Gears of War. Their collaborations extend to major entities like Riot, Capcom, Activision, and Amazon. At Keywords, Gershin will continue his work within the film and broadcast industries, having worked on notable titles including Nightcrawler, Pacific Rim, and Shrek.
Keywords Studios’ CEO Andrew Day expressed his enthusiasm, stating, “I’m delighted to welcome Scott and his team into the Keywords family. As games become ever more immersive, sound design quality is getting ever closer to that of movies.” The newly established Sound Lab studio will be integrated within Keywords’ Audio Services Line, benefiting from its global network of studios and extensive client base worldwide. Day elaborated, “The sound design services we are adding with this investment help round out the full suite of audio services we are now able to offer to clients in interactive and linear media.”
The second acquisition involves the UK-based TrailerFarm, a company specialising in producing trailers for the marketing and support of video games. This acquisition complements Keywords’ recent acquisition of a marketing services business focused on producing high-impact, cost-effective trailers. Founded in 2011 by Tony and Dan Porter, TrailerFarm comprises a team of 12 creative professionals, including directors, artists, managers, and designers. Their expertise spans across mobile and console/PC game trailers, utilised during game launches and promotional events. For the year ending 30 June 2018, TrailerFarm reported revenues of £1 million and an adjusted EBITDA of £165,000. Keywords has agreed to pay a total consideration of up to £2 million for the acquisition.
Andrew Day highlighted the relevance of trailers in the video game industry, stating, “Trailers are the primary marketing asset for video games and Keywords’ ability to produce trailers across the spectrum from cost-effective small productions to the very high end trailers for AAA games positions us well in this interesting segment of the games services market.” He further noted that trailers bring together various creative elements, including art, animation, sound effects, music, and voiced audio, showcasing the comprehensive range of services and creative capabilities Keywords now offers.
The strategic acquisitions made by Keywords Studios signify a robust expansion and enhancement of their service offerings, supported by a substantial revenue increase. The inclusion of Sound Lab and TrailerFarm under the Keywords umbrella highlights their forward-thinking approach and commitment to providing top-tier services within the evolving video game and entertainment sectors.