Monday, October 3

Brazil’s Magazine Luiza launches gaming arm with mobile focus


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SAO PAULO — Brazilian retailer Magazine Luiza on Wednesday launched three mobile phone focused games in its first move into the competitive game distribution space.

The move is part of a broader effort by one of the country’s leading e-commerce players to diversify its revenues at a time when rising interest rates pose a challenge for retailers.

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“It is a long-term project, it has many synergies with many companies in the group,” said Thiago Catoto, director of Luizalabs, the company’s innovation unit.

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Magazine Luiza is also developing a studio to create its own games. For the initial set of mobile games, Magazine Luiza acted only as a “publisher” of games designed elsewhere.

In recent years, the retailer has acquired sites like Jovem Nerd and CanalTech, which offer news and reviews of games, and videogame and tech-focused e-commerce site Kabum!.

Magazine Luiza said it intends to monetize the games, which are free of charge, through ads and micro-transactions.

Catoto said the company intends to launch games in the next few months, as well as to enter more complex segments in the future, such as games for computers and consoles, but did not provide a time frame.

The company did not disclose the total invested figures or any revenue forecast for the new venture. (Reporting by Andre Romani; Writing by Peter Frontini)



financialpost.com