Categories: Business

Brazil’s Magazine Luiza launches Magalu Games and enters the gaming market

Following its strategy of diversifying its portfolio and building a complete ecosystem, Magazine Luiza, Brazil‘s most valued retail and e-commerce chain, announced its debut in the gaming market through Magalu Games. At first, Magalu’s focus is on hyper-casual games (a mobile game that is easy-to-play, and usually free-to-play, such as the popular Candy Crush or Angry Birds).

Magalu intends to invest in games either in production or already developed by national studios. The company has even launched a public call for proposals which will select three projects and provide financial support (BRL 100,000 for each one) and mentoring.

READ ALSO: Magalu and Jovem Nerd: the content magic in the business world

The arrival in the gaming industry is one more step Magalu has taken to bolster its position in the retail market for gaming equipment and content, a billion-dollar market that continues to grow, including in Brazil, where 95 million people play some kind of game, according to e-sports consultancy BBL.

Initially, Magalu Games will operate as a publisher, investing and creating games and promoting them mainly to users of its super app. The partner projects selected by the call for proposals will also have access to the Magalu’s companies and platforms, such as Magalu Ads and Jovem Nerd, a content channel focused on geek culture, including movies, series, games, history, and science.

READ ALSO: Magazine Luiza acquires Brazil’s geek e-commerce platform KaBuM! for BRL 1 billion

The acquisition of Jovem Nerd, in April of this year, kicked off Magalu’s strategy of boosting projects related to the platform’s intellectual property, including plans for complex games, series, and even movies. Soon after, the retailer bought the portal Canaltech and the technology and games e-commerce KaBuM! for no less than BRL 1 billion.

All this investment has a clear purpose: to attract more users to the company’s super app and expand the app’s usage time and recurrence. The idea is that Magalu Games will integrate the games into the super app and offer benefits through integration with programs and products, such as cashback within the games.

This post was last modified on November 18, 2021 8:05 pm

Share
Published by
LABS

Recent Posts

iFood gets authorization to use drones for food deliveries in Brazil

ANAC granted authorization for iFood to do drone-assisted food deliveries with loads up to 2.5…

January 24, 2022

Brazilian global remittance fintech Remessa Online launches foreign exchange solution for companies

With the launch of an API, companies that want to offer currency exchange and international…

January 24, 2022

Burger King launches its own delivery operation in Brazil

The country is also the first to have a loyalty club for the brand, with…

January 24, 2022

Brazilian companies XP and Rico launch investment fund focused on the metaverse

The fund offers investments starting at BRL 100 and brings together around 30 global technology…

January 24, 2022

Brazil: economic crisis and a sliding stock market fuel M&As

With the economy in recession, inflation in double digits and a polarizing election looming, a…

January 24, 2022

Brazilian startup Partyou, focused on student unions, gets a $3 million Seed round from Bradesco

The newly raised capital will help the startup consolidate its financial management platform for student…

January 22, 2022