Research Summary

The report discusses the potential of Mythical Games, a company that integrates Web3 technology into gaming. The company, backed by industry veterans and top investors, is generating $330m of annualized revenue and is expected to experience a significant valuation re-rate. The report highlights the company’s successful titles, the role of its $MYTH token, and its transition from a studio to a gaming infrastructure focus.

Key Takeaways

Mythical Games’ Strong Foundation

  • Industry Veterans at the Helm: Mythical Games is founded by gaming industry veterans from Activision, Blizzard, EA, and Amazon gaming. This experienced team is expected to leverage their expertise to drive the company’s success.
  • Strong Investor Backing: The company is backed by top investors from both traditional finance and Web3 ventures, including a16z, Binance, Galaxy, and Hashed. This diverse investor base is instrumental in securing valuable IP and licenses for their games and ecosystem.

Mythical Games’ Revenue and Valuation

  • Impressive Revenue Generation: Mythical Games is generating $330m of annualized revenue, more than Immutable X, but with a 10x smaller valuation. This indicates a potential undervaluation of the company.
  • Expected Valuation Re-rate: The report suggests that Mythical Games is about to experience a significant valuation re-rate, moving from a $300M valuation to a potential multi-billion-dollar outcome. This is due to their transition from a first-party game system to a global gaming ecosystem with third-party AAA games.

The Role of $MYTH Token

  • Central to the Ecosystem: The $MYTH token is central to Mythical Games’ ecosystem. It enables transactions within games, rewards players, and provides governance rights. With $MYTH, players can have a real stake in the gaming worlds they love.
  • Token Transformation: The token is currently undergoing a transformation to an improved version, MYTH 2.0. This transformation is expected to enhance its utility and value within the ecosystem.

Mythical Games’ Successful Titles

  • Track Record of Success: Mythical Games has launched successful titles in the past, each earning high user engagement and strong reviews. These include Blankos Block Party, NFL Rivals, and Nitro Nation World Tour.
  • Robust Pipeline: The company offers a robust pipeline of both 1P and 3P games. Third-party studios choose MYTH for its approved technology stack, industry expertise, strong relationships, and revenue uplift of 20-30%.

Actionable Insights

  • Monitor the Progress of $MYTH Token: As the $MYTH token is central to Mythical Games’ ecosystem and is currently undergoing a transformation to an improved version, it would be beneficial to monitor its progress and adoption within the gaming community.
  • Assess the Impact of the Company’s Transition: Mythical Games’ transition from a first-party game system to a global gaming ecosystem with third-party AAA games is expected to significantly impact its valuation. Assessing the impact of this transition on the company’s performance and valuation could provide valuable insights.
  • Examine the Company’s Revenue Generation: Given the company’s impressive revenue generation and potential undervaluation, it would be worthwhile to examine its revenue streams and growth strategies.

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