Advertisement 1

Digital Extremes on the block just as COVID-19 drives gaming growth

Article content

A London gaming business is seeing some growth, even as a change in ownership is in the wind.

Digital Extremes, maker of the Warframe game, has recently hired 14 staff, growing its ranks to 325, as its game is in demand since more people are home more due to COVID-19.

“This is tied to COVID, especially with more people playing games now in isolation. We are seeing rapid growth,” said Heidi Flynn, human resources director at Digital Extremes.

Advertisement 2
Story continues below
Article content
Article content

As devastating as COVID-19 has been on many business sectors, some technology firms are seeing business opportunity and the gaming sector is one, added Christina Fox, chief executive of TechAlliance, the agency representing and advocating for technology businesses in London.

“There has been an increase for many tech companies” in London and across Southwestern Ontario, she said.

“It depends on the size of the companies and what technology they have. We are very busy now and we are seeing some positives.”

Along with gaming, there is a demand for some types of software as more people work remotely, and for the tech-based health-care sector, and that may lead to more job growth in the sector, she added.

“I will say for both London and region, across Southwestern Ontario, there is an opportunity to attract and retain talent, especially in the gaming sector,” said Fox.

But this growth is also happening against a backdrop of uncertainty as Digital Extremes is about to be sold, for the second time in five years.

Bloomberg.com is reporting Chinese gaming business iDreamSky Technology Holdings Ltd. is in exclusive talks to buy rival gaming firm Leyou Technologies Holdings Ltd. for about $1.4 billion.

Advertisement 3
Story continues below
Article content

Leyou, in Hong Kong, bought Digital Extremes in 2015 under its subsidiary Multi Dynamic Games Group.

“We have massive companies looking at us now,” said Flynn.

The business news website also reported Leyou has entered into a memorandum of understanding to sell 69.2 per cent stake of its business to an unidentified potential buyer.

Digital Extremes has added more than 100 jobs in London since the time it was sold in 2015, so a new owner may not mean uncertainty or job losses, added Fox.

“With any merger or acquisition, business could move, but given what happened after the last sale of Digital Extremes, I can’t imagine they will leave London when they have the talent base,” Fox said.

“The economic impact they bring is significant. They have done incredible work to build a culture. I am hard pressed to think they would move, but it is anyone’s guess.”

Leyou bought 58 per cent of Digital Extremes in 2015 and another 39 per cent the following year for US$134.6 million.

Digital Extremes president Michael Schmalz could not be reached for comment. The company, founded in 1993, is located in Citi Plaza.

Advertisement 4
Story continues below
Article content

As for the new hires, the business has a “remote mentor” program where a staff person works with the new hire, easing their transition to a remote workplace in these pandemic times, said Flynn. The new hires are programmers, technical game analysts, customer support representatives and web developers, to name a few.

Digital Extreme’s most popular game, Warframe, is a space combat game available on all platforms.

The company is also going ahead with its gaming conference, TennoCon, in July. The event, which has drawn 3,000 fans to the city in the past, will now be virtual, added Flynn.

As well as a gaming conference TennoCon is also a charity event. The company has announced it will give proceeds from the conference to Autism Ontario London and Alzheimer Society London and Middlesex.

Article content
Comments
You must be logged in to join the discussion or read more comments.
Join the Conversation

Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.

Latest National Stories
    This Week in Flyers