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The DeanBeat: The FOMO over the decline of triple-A games is unwarranted

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Public offerings of game companies took off in Q1 2021.

Did you miss GamesBeat Summit 2021? Watch on-demand here! 


“I must not fear.
Fear is the mind-killer.
Fear is the little-death that brings total obliteration.
I will face my fear.
I will permit it to pass over me and through me.
And when it has gone past I will turn the inner eye to see its path.
Where the fear has gone there will be nothing. Only I will remain.”

— Frank Herbert, the litany against fear in Dune.

We had another panic this week about the decline of triple-A video games, and it showed that we have a lot of fear of missing out as fans. But I think some of this fear is based on a misunderstanding about the industry’s unique status as both a business and an art form. Hardcore gamers like the art form, while business people want to get rich from it. They don’t always trust each other’s motivations.

Ubisoft’s chief financial officer Frederick Duguet set off the panic among hardcore gamers when he said in an earnings call that putting out three or four triple-A games is not “a proper indication of [Ubisoft’s] value-creation dynamics.” Instead, Ubisoft expects to make generate more revenue from free-to-play live-service games. And so it had announced The Division: Heartland, a free-to-play shooter. Many fans took Duguet’s comments to mean that Ubisoft is going to make fewer triple-A games. So Ubisoft’s PR department had to intercede with a clarification the next day.

“Our intention is to deliver a diverse line-up of games that players will love – across all platforms. We are excited to be investing more in free-to-play experiences, however we want to clarify that this does not mean reducing our AAA offering,” a spokesperson said in a statement. “Our aim is to continue to deliver premium experiences to players such as Far Cry 6, Rainbow Six Quarantine, Riders Republic and Skull & Bones to name a few while also expanding our free-to-play portfolio and strengthening our brands to reach even more players.”

In other words, Ubisoft reassured fans that it’s not taking away your triple-A games. By extension, I will argue that all of the fads of the moment — nonfungible tokens (NFTs), blockchain, augmented reality, free-to-play mobile games, live services on FIFA Soccer, esports, user-generated content, remakes and retro games — are not taking away from your triple-A games. As Jeff Grubb pointed out, they’re additive. The game industry is expected to hit $175.8 billion in 2021, according to game and entertainment data firm Newzoo. As an industry, it is taking away time from sports, movies, music, TV, and other hobbies.

Above: Public offerings of game companies took off in Q1 2021.

Image Credit: InvestGame

The industry has enough money to go around. Everything in games is getting funded. Investors are pouring money into public offerings, acquisitions, and game startup investments. Even indie game makers are benefiting from this, and they continue to be the creative heartbeat of the industry, supplying the innovative games like Hades that triple-A game companies aren’t making. The first quarter saw $39 billion invested into the game industry in 280 announced transactions, according to InvestGame. That quarterly amount was higher than $33 billion reported for all of 2020.

Will mobile games get more budgeted money? Yes. Mobile games are 51% of the market and are growing. PC and consoles games could actually shrink in 2021, based on delays shipping big games during the pandemic. That’s going to happen, as it’s easier to invest in mobile games and increasingly harder to invest in PC and console games, which are often delayed.

“That’s kind of the dirty little secret of the video game business is that it is a business, after all, and we need to do, we need to create an audience, we need to create a revenue stream the cash flow in order to continue to create new and exciting games for people to play,” said Shawn Layden, former chairman of Sony Worldwide Game Studios, said at our recent GamesBeat Summit 2021 event.

You may not trust my answer here, but this is a good thing. The strategy that I see everybody pursuing right now makes perfect sense, and it will be good for all of games.

Why this is good news

First, mobile and free-to-play triple-A games are expanding the market. They are the tip of the spear when it comes to penetrating new markets and convincing people that games are a good use of their time. We’re at 3 billion gamers and growing, but not everybody on the planet is a gamer yet. By making the price of games more accessible, we enable games to reach more people. Those people will pick up the habit. They will find the new point of entry, and they will become gamers, hopefully for life. They will also keep playing these accessible and less time-consuming games even in periods of life when they’re busier, like when they have kids or have to study a lot or have to pour a lot of energy into work.

The key is that they are the point of entry into the vastness of games. Consider Call of Duty. Bobby Kotick, CEO of Activision Blizzard, had some foresight in getting three major game studios to make Call of Duty games in parallel, so that a new one could be launched every year without a sacrifice in the quality of the triple-A game. That wasn’t an easy process, and many accused Kotick of wrecking the franchise by making it too frequent. But the developers didn’t run into creative exhaustion. They converted players into wanting to play Call of Duty every year.

Now nine studios or so are working on Call of Duty. That allowed Activision Blizzard to add the free-to-play games Call of Duty: Mobile and Call of Duty: Warzone. These became the new points of entry for Call of Duty. Call of Duty also went cross-platform so you could play with friends wherever they were. You could start at the top of the funnel, playing for free. Within Warzone, all you had to do to upgrade to the $60 premium game was click a few buttons. Analyst Michael Pachter of Wedbush Securities estimates that Call of Duty premium game sales went up from around 25 million a year to 35 million a year. The result was record performance for Activision Blizzard in 2020. Now people play Call of Duty every year. And if you follow what Kotick said at our GamesBeat Summit 2021 event, increasing the share spent in the day by creating some kind of Call of Duty metaverse is probably the next goal.

Kotick said that the 10,000-person company now needs at least 2,000 more people to meet its production obligations. It’s making triple-A games like Diablo 4, but it is also making the free-to-play Diablo Immortal game for mobile. Do you see the pattern? Kotick is using the same strategy of Call of Duty with Diablo. Mobile and free-to-play games are the onramps to the franchise and you can expect to see Activision Blizzard execute on the same strategy for every major franchise.

No fear

Skull & Bones is looking awesome.

Above: Skull & Bones is coming one of these days from Ubisoft.

Image Credit: Ubisoft

The financial success of Call of Duty and Activision Blizzard isn’t lost on Electronic Arts, which is making a mobile game based on Battlefield. That will be the onramp for Battlefield VI, the triple-A game that is in production. EA has a mobile Apex Legends game that will be the onramp for the free-to-play Apex Legends, and maybe Respawn will fill out the roster with a triple-A Apex Legends (or maybe Titanfall) premium game.

With Ubisoft, the free-to-play The Division: The Heartland can be an onramp to The Division or The Division 2 games. And so on. These efforts are not going to cannibalize each other, in my opinion. They are going to make it more likely that players will become hobbyists. The hobby will not just be games. It will be more specific than that. The hobby will become Call of Duty, or Diablo, or Apex Legends, or The Division. These franchises will command all of our time, and people will constantly cycle through them from the top of the funnel to the bottom.

On our GamesBeat Summit panel, Layden was more focused on Sony’s own specific challenges. But he was right in that platform owners — and by extension the whole game industry — has the responsibility of expanding the market. The lower the price point, the lower risk it is for the industry. Hollywood, by contrast, has been slow to lower the ticket prices of movies. In fact, it raised them just in time for the pandemic. It’s no surprise that streaming movie services took off during the pandemic because they were cheaper. The price spectrum of games captures all the right players.

Hardcore gamers should also be aware that what they want to play isn’t what everyone wants to play. As the game industry expands out of its ghetto of 200 million or 300 million gamers, it will have to serve more diverse content than it ever has, to capture people like older players, international players in emerging markets and different cultures, and women. As it expands to mobile and free-to-play games, the industry should remember that it shouldn’t make just the same old franchises for the new players.

And as everybody becomes a gamer, the game market becomes bigger, the opportunity for each game is higher, and we will get better games of all kinds as a result — including better triple-A games.

The goose and the eggs

Dean Takahashi moderates a new IP panel with Shawn Layden, Ante Odic, and Marty O'Donnell.

Above: Dean Takahashi moderates a new IP panel with Shawn Layden, Ante Odic, and Marty O’Donnell.

Image Credit: GamesBeat

Layden, who had to oversee 13 first-party game studios for the PlayStation business, said that churning out sequels and providing fan service on important franchises is a necessary part of the business. But eventually, everyone comes around to realize the importance of doing original games.

“If we continue to make the same type of game over and over again, we will continue to appeal to the same audience we already have over and over again. We won’t be able to break out gaming into into a wider and larger business. We talk a lot about how video game business is the largest entertainment business in the world. But we really don’t punch above our weight when it comes to society and culture. And I think that’s because we don’t bring a diverse enough audience into enjoying gaming. And that’s why original intellectual property is important.”

Layden knows that going to a board of directors and pitching them a game that will cost $280 million to make over five years isn’t easy. That is a difficult pitch for anybody to make, no matter who you are. But those kinds of bets have to be made.

“It’s definitely problematic that the budgets have skyrocketed,” said one executive who participated in a secret roundtable at GamesBeat Summit 2021. “On the other end of the spectrum, that’s defensibility if you’ve got 10 million people playing every month. There are precious few that can assemble the budgets have the IP, have the distribution network, and the global brands to be able to compete in a market where people’s time is scarce.”

Grand Theft Auto Online: Arena Wars.

Above: Grand Theft Auto Online: Arena Wars.

Image Credit: Rockstar Games

A game like Grand Theft Auto V can sell 150 million units — a number that wasn’t possible more than a decade ago. So the upside is tremendous, and these franchises once established can give birth to live services, media spinoffs in adjacent entertainment markets, and high-margin mobile opportunities. The upside to that initial $280 million investment is tens of billions in additional market capitalization for the company that achieves it.

“If you perform at the highest level, and you have structural competitive advantages, it might actually be a virtue for the platform players at the top of the ecosystem to spend that much and deliver something that is polished and really, truly, triple-A,” he said. “You get a disproportionate share of a much, much bigger pie.”

Also on that panel was Ante Odic, senior vice president of product at Outfit7, the maker of the Talking Tom series and other games that have been downloaded 15 billion times. Even Outfit7 is investing to find the next Talking Tom as it knows that new IP is so critical. And just because it is investing in Talking Tom doesn’t mean that it isn’t investing in new IP. It’s not a zero-sum game.

“We have a wide audience,” Odic said. “But we want to go even wider.”

Marty O’Donnell, cofounder of Highwire Games and a former leader at Bungie, noted how the creative team wanted to move on from the successful Halo franchise to something new, so much so that they eventually spun Bungie out of Microsoft to be able to reach that aim.

“We wanted to do something new,” O’Donnell said. He reminded us of the fairy tale about the goose that laid the golden eggs. The important thing wasn’t the golden eggs. It was the goose. You don’t want to kill the goose laying the golden eggs, O’Donnell said.

“My slogan is be nice to the goose. And the goose is the team that lays the golden egg,” he said. “And being nice to the golden egg means you’re just going to make sequels that that are dead. But if you’re nice to the team that makes the lays the golden egg, that’s the only way to get really good new golden eggs. Certainly you don’t want to stab the goose and try to cut it open. But all I would ask for for publishers and developers is be nice to the goose because that’s how you’re going to get more eggs.”

A beautiful industry structure

DreamHaven is the new game company started by Mike and Amy Morhaime.

Above: DreamHaven is the new game company started by Mike and Amy Morhaime.

Image Credit: DreamHaven

And remember, if one company retreats from triple-A games, another may attack that opportunity. If Sony were to bail out of triple-A original games and shirk its responsibility, only to focus on sequels and free-to-play low-hanging fruit, it would lose its triple-A creators. They would go to another company like Nintendo or Microsoft or Epic Games or Valve or Ubisoft or Electronic Arts ….You get the point.

They could also seek creative freedom in indie games or start a new triple-A studio. That sort of thing is happening, as Harold Ryan has multiple triple-A games going at Probably Monsters. If Riot Games gets a little sleepy at innovation, the former Riot veterans at Theorycraft Games, which raised $37 million, or the scrappy ex-Riot team at Hidden Leaf Games will be happy to pick up the mantle and hire the Riot leaders who prefer to work on groundbreaking titles.

As I mentioned, a record amount of money is available to the game industry’s creators at all levels, from the newly minted public company Roblox that is worth $39.6 billion to Animoca Brands that has raised $88 billion at a $1 billion valuation to make NFT games to DreamHaven Games, founded by former Blizzard president Mike Morhaime and Amy Morhaime. The game industry has enough money pouring in at once to fund everything that it needs and to make every game that we want. It has never been like this before.

For gamers, don’t worry, be happy. And for game developers, heed what Layden said. “Find the best risks and take them. If you stay the course and keep true to the vision, you will be more delighted with the outcome.”

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Incorta nabs $120M to power business data analytics

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Incorta

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Incorta, an analytics platform designed to speed up data ingestion, this week announced that it raised $120 million in funding contributed by Prysm Capital, with participation from National Grid Ventures, GV, Kleiner Perkins, M12, Sorenson Capital, Telstra Ventures, Ron Wohl, and Silicon Valley Bank (in the form of a credit facility). CEO Scott Jones says that the capital, which brings Incorta’s total raised to $195 million, will be used to expand go-to-market operations and meet demand for Incorta’s analytics products.

According to a recent IDC study, 70% of CEOs acknowledge that their organization needs to become more data-driven, with 87% saying that becoming more agile and integrated is a top priority over the next five years. Meanwhile, new research from Ventana Research highlights where companies struggle most with data analytics. Fifty-five percent of organizations report that the most time-consuming task in analytics is preparing the data. According to Ventana, 25% of organizations combine more than 20 data sources in their data preparation activities and 39% uses more than 104.

Incorta, which was founded in 2014 by Oracle veterans Hichem Sellami, Klaus Fabian, Matthew Halliday, and Osama Elkady, offers a solution that aims to help companies to acquire, enrich, analyze, and act upon business data. It can make upwards of tens of billions of rows of data “analytics-ready” without the need to pre-aggregate, reshape or transform the data in any way, connecting to enterprise apps, data streams, and data files via over 240 integrations.

Above: Incorta’s management dashboard.

Image Credit: Incorta

“The unprecedented events of the past year highlight the importance of modern data analytics in today’s business environment — platforms and tools like Incorta that deliver data to users directly without costly systems and processes like data warehousing … severely limiting speed and agility,” Jones said in a press release. “After hitting a major inflection point in 2020, Incorta is now scaling fast to meet global demand for modern data analytics in the cloud.”

Data transformation

Ninety-five percent of businesses cite the need to manage unstructured data as a problem for their business. Problematically, 80% to 90% of the data companies generate today is unstructured, according to CIO.

Incorta addresses this by offering an enriched metadata map combined with smart query routing. The result is a repository for analytics and machine learning — one that can be run on-premises, hosted by a cloud provider, or delivered as a fully-managed cloud service. Incorta can run as a complete standalone data and analytics pipeline or as a component within a larger analytics and business intelligence tech portfolio, depending on an organization’s data analytics needs.

“Companies have an increasing need to gain insight and make decisions from data with speed and agility, and Incorta provides this mission-critical solution with a differentiated offering,” Muhammad Mian, cofounder and partner at Prysm Capital, said in a statement. “Prysm is excited to partner with an exceptional management team to support the growth of a product that is at the intersection of attractive long-term trends: the explosion of data, digital and cloud transformation, and business intelligence modernization.”

Incorta’s latest round of fundraising, a series D, comes after a year in which nearly 60% of the company’s new revenue came from organic expansion with existing customers across media and entertainment, social, high tech, ecommerce, and retail markets. Incorta recently launched Incorta Mobile, a data analytics experience for mobile devices, as well as partnerships with Microsoft Azure, Google Cloud, eCapital, and and Tableau. And it established a footprint North America, the Middle East, U.K., and Japan.

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Magic: The Gathering’s Adventures in the Forgotten Realms delves into Dungeons

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Magic: The Gathering's Adventures in the Forgotten Realms delves into Dungeons

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I once feared Magic: The Gathering would kill Dungeons & Dragons. Wizards of the Coast ended up saving it, and now, the granddaddy of trading card games is heading to the Forgotten Realms of Faerûn — and its Dungeons.

Today, Wizards of the Coast is showing off more cards from the Adventures in the Forgotten Realms set, which launches July 8 on Magic: The Gathering — Arena and July 23 in paper. In addition to bringing the likes of Drizzt Do’Urden, Tiamat, and Lolth the Spider Queen to Magic, Adventures in the Forgotten Realms introduces Dungeons to the card game.

Senior game designer James Wyatt (who also worked on two of my favorite D&D books, the 3rd Edition City of the Spider Queen and Draconomicon) and worldbuilding designer Meris Mullaley showed off a handful of the set’s cards to the press last week. And the three Dungeons and their Venture mechanic showed how the Magic team is approaching fitting Realmslore into the set.

Dungeon delving

Above: The dungeons of Adventures in the Forgotten Realms.

Image Credit: GamesBeat

The Dungeons are adaptations of existing D&D modules and campaigns that have appeared in 5th Edition (among others):

“Whenever you have a card that tells you to Venture into the Dungeon, what you do is you pick one of these Dungeons, and you put a marker at the very top room. And every time you Venture, then you can move down a level — farther into the Dungeon — by one room,” Wyatt said in a video briefing.

Each player has their own Dungeons, so they could be exploring the Lost Mine of Phandelver at the same time (so, two people could be doing so in a 1-on-1 game, or three of four players could be in a Commander match). You can have one, two, or all three active at once. When you Venture, you could either go deeper into one or begin exploring another.

These Dungeons offer choices. You choose which one you want to delve into and which path you take. The Tomb of Annihilation has you sacrificing cards, artifacts, and life to gain a horrific benefit (which fits the theme of the lich Acererak’s deathtrap). I also find adding this dungeon interesting because Acererak was a card in Spellfire, which was D&D‘s failed answer to Magic back in the 1990s.

Halaster’s dungeon gives you more choices, but it takes longer to get through it (as befits the numerous levels of Undermountain).

“If you choose Dungeon of the Mad Mage, you’re really in this dungeon for a long time exploring the holes of Undermountain,” Wyatt said. “You need seven Ventures to get all the way through, but you have lots of choices to make as you go along the way.”

Dungeons are a neat way to capture the flavor of D&D within Magic. Undermountain has been a mainstay of the Realms since The Ruins of Undermountain boxed set in 1991; since then, TSR or Wizards of the Coast has published several campaign sets, adventures, game books, and even a board game about these halls.

The Magic team is using its existing combination of creatures, artifacts, and spells to take advantage of these Dungeons.

FR Venture Dungeon cards

Above: These cards work with Dungeons, giving you benefits or helping you get through them.

Image Credit: GamesBeat

“There are a variety of cards that interact with Venture in interesting ways, including all the way down to Common [rarity] with things like Shortcut Seeker, hitting that classic trope of ‘look, there’s a trapdoor under the rug,’” Wyatt said. “Venture is a strong theme across all rarities, so there’s lots of opportunity for players to experience the thrill of exploring Dungeons.”

I asked if the Dungeons had special loot attached to them, such as a Sphere of Annihilation for the Tomb of Annihilation. A Wizards spokesperson on the call said we’d have to wait and see on that.

Give me land, lots of land

Another way to capture the flavor of the Forgotten Realms is with lands. The Basic lands all have some art or text reference to Faerûn, even if it’s not obvious at first glance.

What’s really interesting are some of the alternate land cards. One example is Evolving Wilds, a Magic staple. This treatment captures the style of classic D&D modules such as The Keep on the Borderlands (it even has the lavender-ish coloring).

FR lands

Above: The Basic lands reference the Realms in their art and their text.

Image Credit: GamesBeat

The set will have nine of these lands, eight of them with new names.

“We’re calling this the Classic Module land frame. These are borderless module lands featuring art that is reminiscent of the cover art from classic Dungeons & Dragons adventure modules,” Mullaley said. “They’re all lands. There’s nine of them. This one is Evolving Wilds, but the other lands are new, with names that were created to sound like adventures.”

Seeing some of the Basic lands did raise a concern. The Forest doesn’t scream Forgotten Realms to me, and the text doesn’t add any flavor; it looks like it could fit into any other Magic set.

“We did a full concept push for this set, like we do for any Magic set. Obviously there’s already a ton of art exploring what the Forgotten Realms looks like. There’s not necessarily a ton of of art or color art establishing the look of specific geographical regions like the Evermoors, or the Spine of the World, or the High Forest,” Wyatt said. “So all of these lands — almost all of these lands — do actually point to specific places that we developed in the world guide, though I think that forest right there is an example of elven architecture, rather than a specific place, so that was also one of the areas we explored in the world guide.

“If I’m remembering right, the cycles of lands include one of each land type in the Underdark, one that shows a settlement of various peoples of the Realms, one that is just a wilderness area, and one that includes some ruins of ancient civilizations. So there’s definitely a lot of Realms flavor, sometimes not obvious in there, but in there.”

Who’s the set for?

FR card treatments

Above: Card treatments for Adventures in the Forgotten Realms include borderless art cards, special art cards that look like D&D stat blocks, and illustrations that hark back to 1st and 2nd Edition styles.

Image Credit: GamesBeat

As Mullaley and Wyatt showed off this batch of cards, I wondered (as did others on the briefing) who this set was for. Is it for Magic players, enticing them into something new? Is it for Realms fans who Wizards wants to push into Magic? Or folks like me, who enjoy both of Wizards’ big properties?

“I think that for someone who is familiar with Magic and not familiar with Dungeons & Dragons, it will be like encountering a completely new plane that we’ve created for the first time for a Magic set,” Mullaley said. “It’s for Standard play, so it’s built to work with all of the other sets in Standard. And while we created a few new mechanics that were kind of inspired by Dungeons & Dragons play for this set, for the most part, it plays like a Magic set, and it’s got the creature types you’ve come to expect and be the Standard exciting Magic gameplay, and the flavor of the world happens to be Dungeons & Dragons.

“So we’re hoping that, as you’re playing this, what might be a deep cut reference for a friend of yours might be something that sparks a bit of curiosity for you.”

One card that worries me is a Legendary character, the Dragonborn knight Nadaar, Selfless Paladin. They’re a character created for this set. But why would you need to make characters when you have official material going back to the “Grey Box” set of 1987 and Realms fans want characters they’ve come to love over the years, such as The Simbul, the dastardly wizard Manshoon, or even gods such as Bhaal?

“Hopefully, we can do both,” Wyatt said on mixing known and new characters together. “We have a lot of goals, putting Legends into a set, including hitting nostalgia, but also hitting various diversity milestones, trying to make sure that that we’re reflecting our audience and the game as it is now, not as it was 25 years ago. So, yeah, we definitely trying to do both.”

Yesterday, Magic head designer Mark Rosewater posted a blog with a number of hints and teases that addresses my concerns. These include:

  • a Legendary creature that makes a Legendary Hamster creature token (this must be Minsc & Boo, the beloved duo from the Baldur’s Gate games)
  • a card that creates a Legendary creature token named Vecna (while Vecna is more associated with Greyhawk than the Realms, the lich is a popular figure in the D&D community and was part of Critical Role’s story)
  • a creature with a death trigger that makes an equipment token (this could be a Gelatinous Cube, with the remains of an adventurer inside it)
  • Spend this mana only to cast Dragon spells or activate abilities of Dragons (this could be from an Orb of Dragonkind)
  • Creature — Bird Bear (this must be an Owlbear)
  • Creature — Elf Spider (this must be a Drider, the drow that Lolth curses to be part elf, part spider, and all horror)
  • Legendary Creature — Devil God (this must be Asmodeus, who’s been playing with the Realms for some time now)
  • Legendary Creature — Beholder

Also yesterday, Wizards of the Coast put out a list of folks who will have card previews and the date they’re showing them off.

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GamesBeat’s creed when covering the game industry is “where passion meets business.” What does this mean? We want to tell you how the news matters to you — not just as a decision-maker at a game studio, but also as a fan of games. Whether you read our articles, listen to our podcasts, or watch our videos, GamesBeat will help you learn about the industry and enjoy engaging with it.

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Tonkean raises $50M to expand its workflow automation platform

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Tonkean

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Tonkean, a software startup developing a no-code workflow automation platform, today announced that it nabbed $50 million in a series B round led by Accel with participation from Lightspeed Ventures and Foundation Capital. CEO Sagi Eliyahu says that the proceeds will be put toward scaling up the company’s hiring efforts across engineering and go-to-market teams.

San Francisco, California-based Tonkean was founded in 2015 by Eliyahu and Offir Talmor. At age 18, Eliyahu and Talmor met in the Israel Defense Forces (IDF), where they spent four years working on software technologies and challenges. Before founding Tonkean, Eliyahu was the VP of engineering at Jive Software, but many of Tonkean’s R&D early hires in Israel came from Eliyahu’s and Talmor’s IDF unit.

Eliyahu argues that the value proposition of Tonkean’s platform is twofold. It gives businesses and teams within those businesses the ability to tailor workflows to systems, employees, and processes. At the same time, it solves challenges in a way that doesn’t require many customizations.

“As [Jive] scaled, [we] encountered problems that large businesses often see as inevitable: a tech stack that balloons to include hundreds if not thousands of applications and inefficiency that ran rampant throughout the organization,” Eliyahu told VentureBeat via email. “Tonkean was built to solve the fundamental challenges of enterprise software to allow department and operational experts to actually deliver software with the flexibility to streamline business processes without introducing yet more apps.”

Workflow automation

Tonkean’s workflow designer features adaptive modules that can be added or removed in a drag-and-drop fashion. Customers can use it to proactively reach out and follow people via email, Slack, or Microsoft Teams to deliver data and actions to them or to keep track and manage performance across processes, people, and systems. Moreover, they can automate manual steps such as triaging finance requests, routing items to team members, and chasing status updates. Or they can dive into live details of individual jobs and see aggregate views of metrics and KPIs like turnaround time, turnover rate, and cycle times for tasks.

“In many cases, Tonkean is reducing the need for internal custom development by IT and business technology teams or the need to purchase multiple packaged solutions to support needs from various business units,” Eliyahu said. “Tonkean operates at the cross-section of automation platforms like robotic process automation, integration platform as a service, and business process automation, often replacing but also often extending the value of these platforms by allowing enterprises to orchestrate more complex, human-centric processes and reducing the technical skill sets needed to leverage capabilities provided by technology platforms.”

Above: A screenshot of Tonkean’s workflow automation platform.

Image Credit: Tonkean

Tonkean says it already has “a few dozen” customers, mostly at the Fortune 1000 level — including Grubhub and Crypto.com.

“Tonkean’s AI-powered coordination engine can intelligently and proactively reach people by learning individual or team preferences, like what communication medium is preferred, and route alerts, data, or actions to the right place at the right time,” Eliyahu said. “Tonkean is the operating system for business operations, and as such can be used to deliver use cases in any business operations function including revenue operations, legal operations, HR operations, finance operations, IT operations, and more.”

Tonkean has raised $81 million in venture capital to date with this latest funding round, which also had contributions from Zoom CEO Eric Yuan, Atlassian co-CEO Scott Farquhar, former Google CEO Eric Schmidt, and executives from UiPath. The company, which has over 60 employees, plans to expand the size of its workforce to over 100 within the next year.

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