VK will invest 300 million rubles in the development of Russian video games

Holding VK decided to invest about 300 million rubles. in Russian video game studios and open educational programs at universities to train specialists in the video game industry, Kommersant writes with reference to the company’s presentation “Development of the gaming industry in 2023-2024.”

Funds subdivision VK Play will invest in game projects at the prototype or early stage of completion, a source familiar with the IT company’s plans explained. “Studios that enter the VK perimeter will have special conditions for placing projects on the VK Play distribution platform and in the RuStore app store,” he added.

Actually VK will continue the strategy of My.Games, which the holding sold in September 2022 for $642 million to the manager of LETA Capital Alexander Chachev. Until 2022 My.Games investment fund Venture Capital (MGVC) invested in Russian and foreign game studios.

In just four years, the company has invested more than 6 billion rubles, the co-founder of MGVC said in 2021 Vladimir Nikolsky. The company’s portfolio included more than 40 studios, and she herself was in the top 15 largest strategic investors in the video game industry in the world.

There are teams on the Russian market that can found studios capable of developing a product in a few years, according to independent expert Vyacheslav Makarov. “Now we just need an investor who will give enough money,” he notes. At the same time, according to him, Russian developers “are able to digest no more than 200-300 million dollars in three years.”

Russia lacks strategic investors for video games who will be ready for long-term investments, and “without expecting a 300% payback,” says a top manager of a major Russian developer. In his opinion, investments in small projects with a short development cycle will be attractive, since the development and release of AAA projects cannot be recouped only in the Russian market.

“A game that is attractive for investment should be inexpensive in terms of development, and it should also be a game-service, that is, it should generate income not through the sale of copies, but through microtransactions of users within the product,” the top manager explained.

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