Venturebeat reports that Fenix Games has raised $150 million. The funds will be used to develop blockchain-based games.

Side note: Arcade2Earn raises $3.2 million in investment.

The idea is to create a publisher and platform that will play a key role in bringing games to market. Fenix Games plans to acquire, invest in and publish existing games and blockchain projects under development.

Investors include Phoenix Group and Cypher Capital. Fenix Games believes that blockchain games have evolved intensively over the past couple of years and are moving toward consolidation, which will result in large companies acquiring or funding strong startups. In other words, the company hopes to consolidate studios to survive the current downturn in blockchain gaming.

Users’ perception of the company is fuzzy. For simplicity, please think of us as a venture capital fund that finances the next generation of games. The company starts with a huge capital base to invest in studios. Fenix Games will also use the investment to acquire several existing games in the Web2 space, which would be an excellent base for a portfolio.

Chris Ko, CEO and co-founder of Fenix Games

Players in the gaming sector have provided a marketplace or platform for gamers and game developers. In the console sector, Sony, Microsoft and Nintendo provided the platform for gamers and developers, and in the mobile industry, Apple and Google.

In both cases, an ecosystem for content consumption has emerged. However, no such market yet exists for blockchain games.

Experienced game developers are moving to blockchain games because of Apple’s privacy settings for mobile games. But Fenix Games believes that a very narrow set of games is being developed for blockchain platforms.

Source: Unsplash

Fenix games will combine employees’ game publishing and product management skills and borrow disciplines and capabilities from financial services, primarily asset management.

The company calls the combination of these disciplines game market economics — creating a market for a game or games to maximize potential players. An essential function of game market economics would be to scale the community before a game launches.

The company believes a structural gap exists and seeks to fill it with a redefined publishing group. Just as free-to-play mobile games have combined analytics and product management functions to launch, scale and operate live services, we believe blockchain games will experience a similar «merger».

Chris Ko, CEO and co-founder of Fenix Games

Fenix Games believes that the economics of the game market will play a vital role in the months and even years before a game launch. This is necessary to fill the gap previously filled by platform owners.