The MMORPG Runescape may be old, but it is currently very successful. Nonetheless, it has now been sold, even though the studio Jagex was only acquired by a Chinese company in 2016.
Update 12.7. 9:33 AM: In response to the site gamesindustry.biz, a representative of Jagex stated that they have not yet been sold.
The reported sale is just “one of several options that are on the table.”
The sale of Jagex is a possible solution, but no decision has been made. The situation is still developing.
Original report:
Who has been the owner of Jagex so far? The British development studio Jagex was bought in 2016 by the Chinese company Shandong Hongda. However, the company is not a traditional gaming company, but a mining company. A subsidiary, Fukong Interactive Entertainment, was created to focus on gaming.
Sale due to high debts
Why was Runescape sold now? Runescape is currently very successful and was responsible for 99.5 percent of Fukong’s revenue in 2018, with earnings of over 100 million USD. Nonetheless, Jagex has now been sold. This was hinted at back in January.
Fukong is currently involved in 57 legal disputes concerning financial matters. The company is heavily indebted. Fukong hopes to settle the debts by selling Jagex.
Why is the company so indebted? This is partly due to the gaming situation in China. In 2018, the government denied new games entry into the market. This “gaming freeze” affected the entire industry. The value of stocks fell, revenues declined. Even the board of Fukong left the company.
This plunged the gaming industry in China into a disaster, the effects of which are now visible.
Runescape goes American
How much is Jagex worth? The studio’s value has been estimated at 350 million USD. That is 50 million more than in 2016, when Shandong Hongda acquired the studio.
Who is buying Jagex now? Fukong stated that Jagex has now been sold to US Platinum Fortune, an American investment group, for 350 million dollars.
What does this mean for Runescape? The MMORPG will continue. The players are not expected to notice the sale. Jagex already stated earlier this year that both the game and the development studio are doing well. Players need not worry.
Looking at how much revenue Jagex makes with Runescape, the MMORPG is likely “safe” for the foreseeable future. Moreover, another MMORPG is already in the works.
