ADMC and Gazillion sign JV to create gaming studio

Abu Dhabi Media Company and Gazillion Entertainment, a major US developer and publisher of massively multiplayer online games (MMOG), yesterday signed an agreement to create the region's first MMOG studio, a purpose-built, world-class facility in Abu Dhabi.

MMOG is a video game capable of supporting hundreds or thousands of players simultaneously.

MMOG's are played on the internet and feature at least one persistent world.

Most of the newer game consoles, including the PlayStation Portable, PlayStation 3, Xbox 360, Nintendo DS and Wii, are able to access internet and run MMOG games.

The join venture is expected to highlight Arabic-language in the online gaming industry and plans to train local talent, create employment in the technology sector as well give birth to innovation in the Arabic gaming industry through its world-class studio, said ADMC.

The first game to be launched by the studio in Abu Dhabi is the development of an Arabic-language MMOG based on the popular character 'Majid'.

The venture is intended to facilitate the creation of Arabic content for the Arabic gaming market by establishing an Emirati management within the next five years.

Online gaming is regarded as the fastest-growing media sector in the world, expected to achieve $13 billion (Dh47.7bn) in revenue by 2013. Despite the current economic downturn, the video game industry has been acknowledged as one of the key growth areas of the media sector.

In fact online gaming ranks as the fastest-growing media sector in the world (CAGR 17 per cent between 2008 and 2013), and analysts call the MMOG games for mass audiences to be the next big thing.

Mohamed Khalaf Al Mazrouei, Chairman of ADMC, said :"Today, with the joint venture with Gazillion, our company is charting new growth in the creation of digital media content and technologies."

The joint venture will ensure that the region's talent would have an opportunity to learn skills from the forefront of the US gaming entertainment players.

Ricky Ghai, Executive Director, Digital Media Group, the digital media arm of ADMC, said: "This particular initiative takes one of ADMC's most famous and enduring brands into the digital age and adds to the excitement at our overall efforts to develop the online gaming sector.

"Consumers are increasingly embracing entertainment experiences through unique and immersive technologies, and we plan to market our brands in a number of novel new areas.

"We are aware of the potential the gaming sector holds around the world and are uniquely positioned to drive exciting new platforms that engage consumers through digital entertainment", he added.

Robert Hutter, CEO of Gazillion, said: "MMOG games are becoming an increasingly significant part of the media landscape worldwide, and premium MMOG experiences have the potential to command wide audiences in the Arabic gaming market in the years to come.

"We are pleased to have the chance to collaborate with ADMC on this joint venture, which will help ensure that the vision of exceptional online games for the region is fully realised."

The joint venture aligns directly with ADMC's expansion and diversification strategy. Edward Borgerding, CEO of ADMC, said: "Abu Dhabi Media Company continues to evolve and maximise the potential of its brands portfolio on a global scale well beyond the traditional media outlets. We believe this is the right time for us to take the next step into this and other platforms.

"It also draws on the unique combination of Gazillion's innovation and experience in online gaming, successful track record and tremendous industry leadership potential." In addition, according to this deal, Emirati students and graduates from Higher Colleges of Technology (HCT) in Abu Dhabi will be given an opportunity to engage their creativity and skills to generate relevant games content in the market.

Students are to benefit from employment and on-the-job internship programmes at the new joint venture company, including training placements overseas at Gazillion offices, with such schemes planned to launch in 2010.

"The combined assets of our companies – ADMC's and Gazillion's – along with the Higher Colleges of Technology provide a compelling case for building a trusted digital media brand that engages a growing gaming audience across the Arab world," said Borgerding.

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