PlayStation DualSense controller and PlayStation 5 console.
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This agreement is a strategic investment that will see the two companies collaborate on a variety of commercial opportunities. For now, the two companies are in the “exploration stage” of the partnership.
Cordell Robin Coker, CEO and co-founder of Carry1st, said negotiations with the Sony Innovation Fund began about eight to nine months ago, and his pitch to the PlayStation game console maker was to help Africa become a leader in the video sector. The idea was that it would be the next big market that would grow in the 2000s. game.
“At a time when large companies like Sony, with strong footholds in Tier 1 and Tier 2 markets, are starting to think about where their next billion customers and gamers will come from, our pitch is: Africa is a major market for that,” Robbin said. – Coker said in an interview with CNBC.
“We strongly believe there is an incredibly undervalued console opportunity in Africa,” said Robin Coker, citing Nigeria, Morocco as places where console adoption is significantly increasing. , citing countries such as Algeria.
Sony is entering an emerging gaming market with the potential for explosive growth. Sub-Saharan Africa’s gaming industry is expected to generate more than $1 billion in revenue for the first time in 2024, according to research by Carry1st and venture capital firm Konvoy.
Robin Coker added that many gamers in Africa buy their consoles from the “gray” market, meaning vendors who import consoles from overseas and resell them domestically.
One aspect of Carry1st’s partnership with Sony was to help the gaming and entertainment giant expand its PlayStation footprint in Africa.
Sony predicts that PlayStation 5 will sell a record 25 million units in fiscal year 2023, which would be the best year ever for a PlayStation console. Initially, the PS5 suffered from a shortage of chips and supply chain disruptions.
Sony’s bet with its investment in Carry1st is that Africa will be the next major market to drive PS5 sales growth.
“Our hope is that we can help [Sony] “We will expand PlayStation’s reach in the region and support it in a variety of ways, including broader go-to-market strategies and digital payments,” Robin Coker told CNBC.
He pointed out that Carry1st could take advantage of changes in the console business model. Sales are shifting from primarily physical consoles and in-store payments for games to more online experiences featuring digital downloads, free-to-play games, and in-app purchases. .
Carry1st’s localized payment service Pay1st allows gamers in Africa to purchase games using local infrastructure, bank accounts, and payment methods such as M-Pesa and mobile wallets. Game makers can monetize their games with Carry1st, the company’s online marketplace for games and add-on content.
Founded in 2018, Carry1st specializes in developing social and casual puzzle-based mobile games primarily for African audiences.
Carry1st currently only creates and scales games for other clients such as Activision. However, the company is currently planning to develop its own original titles this year, with three new games in development.
Although little is known about the original game so far, Robbin-Coker said he is “very confident” in Carry1st’s roadmap for original titles and the company’s trajectory towards debuting first-party games. He said he “strongly believes” that he is on board. Sometime in 2024.
Carry1st is still an early-stage startup, but its growth has slowed in recent years. Carry1st says that from 2021 to 2023, his revenue increased nearly 9x. Carry1st says that given the sensitive nature of the numbers, a complete picture of the financial situation is not possible.
Carry1st is working with Activision, Supercell, Riot Games and others to bring Western game series such as “Call of Duty: Mobile” and “Valorant” to Africa.
The company is developing mobile games Mancala Adventures, SpongeBob Krusty Cook-Off, Ludo Blitz and Mine Rescue, all made in partnership with Nickelodeon.
Sony’s investment in Carry1st is part of the company’s new flagship African venture fund, the Sony Innovation Fund: Africa’s First, established in October 2023 to invest in early-stage startups in Africa’s entertainment industry. Funding will be provided.
Sony Ventures Corporate, Sony’s venture arm, initially allocated $10 million to the Africa Fund.
Carry1st’s latest deal adds another name to the top of the cap table to the company’s list of venture backers. Andreessen Horowitz, Bitkraft Ventures, Google, Riot Games, and rapper Nas have backed the company with $60 million in funding so far.