"Unlocking Israel's Gaming Potential: Insights from Industry Leaders"

 

"Unlocking Israel's Gaming Potential: Insights from Industry Leaders"

"In general, two years ago, when we launched our Israeli site, our primary goal was to support around 100 existing clients," explained Ofer Polivoda, General Manager for Mixpanel in Israel. "Currently, we are dedicated to assisting and supporting various organizations, spanning from companies with as few as 20 employees to those with thousands."

Mixpanel, a US-based company with offices in Israel, offers analytical solutions for businesses lacking the in-house expertise to analyze data effectively. They estimate that only 2-5% of employees in most companies possess the knowledge and experience to analyze data, despite many claiming to be data-driven. Today, Mixpanel serves nearly 40,000 organizations worldwide, with 400 of them based in Israel.

Polivoda further highlighted the unexpected interest from the gaming industry, stating, "Although gaming wasn't our primary focus initially, it has chosen us. We are witnessing a growing number of companies in the gaming sector turning to Mixpanel to democratize their data."

During a panel discussion moderated by Elihay Vidal, Editor-in-Chief of CTech, at the Calcalist gaming conference in partnership with Playtika and Google, Adam Fisher, Partner at Bessemer Venture Partners, shared his perspective. He emphasized investing in education and infrastructure to nurture entrepreneurial and programming talent in Israel. Fisher stressed that simply pouring money into a venture is not sufficient; creativity and the ability to thrive in a competitive environment are essential components of success.

Eze Vidra, Managing Partner at Remagine Ventures, echoed Fisher's sentiments, highlighting the importance of education and infrastructure. However, if he were to invest a billion dollars in the gaming industry, he would prioritize establishing a top-notch gaming studio capable of producing high-quality games.

Eitan Reisel, Founder and Managing Partner at vgames, emphasized the pivotal role of content creators in the gaming industry. He suggested allocating a significant portion of funds to support individuals who create gaming content. Conversely, Roi Karo, Chief Risk and Strategy Officer at Fireblocks, expressed his preference for investment in collaborations.

Reisel pointed out that Israel is already a significant player in the gaming industry, contributing significantly to employment, tax revenue, and GDP. He cited companies like MoonActive and Playtika, along with cloud-based enterprises, as making substantial impacts. He underlined ongoing investments to foster the next generation of gaming innovations, stating that some areas are still underdeveloped but will progress in time. Israel and Turkey are leading the Middle East gaming industry.

Vidra highlighted that games account for a significant portion of app store revenues, approximately 60%. He also emphasized the potential impact of gamification on other industries, suggesting that Israel possesses untapped potential for gaming investments, especially in areas like blockchain, cloud technology, gaming, and AI.

Fisher discussed his firm's involvement in gaming investments, mentioning that they have been investing in the sector for two and a half years and have backed five studios in Israel. He foresaw an even greater engagement with gaming in the future, transcending age groups and offering Israel unique global exposure and accessibility.

Reisel drew parallels between games and streaming services like Netflix, emphasizing the competition for consumers' time and attention. He described games as never-ending Netflix series, with all players vying for a finite amount of consumer hours.

Karo addressed the distinction between blockchain and crypto, highlighting blockchain's potential to revolutionize various industries. He noted that gaming is part of this broader movement and can effectively leverage virtual currencies and assets.

Vidra expressed a cautious stance regarding the adoption of Web3 concepts in gaming, emphasizing the importance of creating enjoyable games over implementing Web3 technologies.

The panel also discussed the future competition between mobile gaming and console gaming. Fisher predicted that people will play games on any available device, even kitchen appliances, as Israel expands its presence across various gaming genres and categories.

Vidra added that while mobile gaming contributes to growth, cloud gaming holds the potential to transform the industry, provided challenges in cloud gaming are resolved.

Karo emphasized that blockchain technology can be integrated into games, even if the entire game is not built on the blockchain. He stressed the advantages of being an early adopter and pioneering new opportunities in the field.