Old School RuneScape developer Jagex was acquired in 2020 by U.S. private equity firm The Carlyle Group for an eye-popping $530 million. For perspective, that‘s over 3 times the reported $300 million Microsoft paid for Minecraft in 2014!
As a fellow OSRS player, I know you‘re probably wondering what this record-setting sale means for the future of our favorite retro MMORPG. Well, let‘s dive into the details and discuss what we can expect:
A Brief History of Jagex‘s Ownership
To understand the significance of the recent $530 million sale, it helps to know a bit about Jagex‘s ownership history:
Founded in 2001 by Andrew and Paul Gower.
Sold in 2005 to Insight Venture Partners for just ~$30 million.
Bought in 2016 by Chinese mining company Shanghai Hongtou Network Tech for $300 million.
And now in 2020, acquired by Carlyle Group in one of the largest valuations ever for an MMO studio.
Jagex has bounced between a number of different owners over the past 15+ years. But the latest sale stands out not just for its huge price tag, but also the pedigree of buyer.
Why Carlyle Group Acquired Jagex and OSRS
The Carlyle Group is one of the world‘s largest private equity firms, with over $260 billion of assets under management. They target companies with long-term growth potential to add to their portfolio.
According to GamesIndustry.biz, Carlyle was attracted to "Jagex’s growth prospects, proprietary technology, and the strength of both its RuneScape and Old School RuneScape communities."
In their announcement, Carlyle also emphasized Jagex‘s "track record of sustainable growth".
So in other words, they see major money-making potential in RuneScape‘s continued popularity, especially OSRS with its millions of loyal players.
The Impressive Growth of OSRS
While Jagex doesn‘t break out financials between OSRS and RS3, analysts estimate OSRS accounts for 60-70% of revenues.
And it‘s easy to see why. OSRS consistently maintains over 100,000 concurrent players every day, compared to around 30,000 for RS3.
Total player counts are harder to pin down, but some estimates put OSRS‘s player base as high as 5 million – a huge figure for a retro game from 2007!
Below are Jagex‘s total reported revenues over the past 5 years to illustrate the steady growth:
Year | Revenue (GBP) | Increase YoY |
---|---|---|
2016 | £74.4 million | – |
2017 | £84.9 million | +14% |
2018 | £102.7 million | +21% |
2019 | £109.4 million | +7% |
2020 | £123.7 million | +13% |
With strong player retention and recurring revenue from subscriptions and microtransactions, OSRS in particular is driving major profits.
What Does This Sale Mean for OSRS Players?
For OSRS fans, the burning question is: what does the future hold under new ownership?
On the positive side, Jagex now has far greater financial resources to invest into the game we love. In their press release, Jagex stated:
"This new partnership with Carlyle…will help us stamp out bugs, reduce bots, and propel the technology and tooling that our games depend on."
More resources could lead to necessary engine improvements, hiring more developers, and providing better customer support.
However, some players also worry the new owners will push aggressive monetization at the expense of gameplay integrity. After all, Carlyle has a duty to maximize profits for their investors.
Personally, I suspect we‘ll see an uptick in bonds, cosmetic microtransactions, and other revenue-drivers. But I‘m optimistic Jagex will preserve what makes OSRS so special, even if they squeeze a few extra dollars out of us.
Because at the end of the day, destroying the very loyalty and trust of the player base would undermine the game‘s current success and longevity.
In their press release, Jagex re-affirmed "its commitment to preserving the integrity of the long-standing RuneScape franchise and its community." I‘m cautiously hopeful they will stay true to that promise.
The Bottom Line
While the future is uncertain, the record $530 million sale confirms OSRS remains a highly valuable franchise with incredible staying power even today.
Jagex now has the resources to take the game to new heights. But they also have pressures from ownership to keep increasing profits.
As a member of the passionate OSRS community, I‘m excited to see what‘s next for the game we love. Because one thing‘s for sure – we‘ll keep playing no matter who‘s in charge!
Let me know what you think of the sale and if you have any hopes or concerns. I‘d love to hear from a fellow OSRS veteran!
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