— Midwest Games founder and CEO Ben Kvalo sees the potential for a “mega-hit” video game coming out of Wisconsin in the near future as the regional industry continues to mature.
The Green Bay-based publishing studio recently completed a $3 million investment round, according to an announcement yesterday from lead investor TitletownTech. Midwest Games’ operations are located within the venture capital studio’s Green Bay offices.
In an interview yesterday, Kvalo said much of the funding round will go toward investing in game development at independent studios located in the region and elsewhere.
“Obviously, content is king in our business … We are called Midwest Games, which is our focus, but that doesn’t limit us,” he said. “Really, we’re looking wider than that at, what are these places that are underserved around the world, which is most places, really.”
He noted two-thirds of the video game industry is located in three states: California, Washington and Texas. The rest of the country is heavily underrepresented in the industry, though he said the Midwest gets a leg up from the concentration of activity in Madison alone.
Video game companies with a presence in the city include Activision — through its subsidiary Raven Software — EA, Bethesda, Gearbox Publishing and Krafton, he said.
“Those are five major players, and I’m not sure that anywhere else in the world has all five of those in one city,” he said, adding a Wisconsin-based studio called PerBlue “has done some incredible things” in the mobile gaming space.
Meanwhile, Raven Software has worked on games in the Call of Duty series, which is one of the most successful video game franchises in history.
In the coming years, Kvalo expects to see more games coming out of Wisconsin as more readily available advanced design and production tools enable projects from independent studios. Plus, he noted many veterans of the industry — which is now about 50 years old — may be looking to relocate from the coasts back to their Midwest roots, especially as remote work becomes more common.
“I think we’re going to see an influx of veteran game developers, we’re going to have a whole new wave of new developers that have easy access to make games, and that kind of blend is going to really boost the industry in Wisconsin,” he said. “And we’re going to see more games come out, and my hope is one of those is a mega-hit and really puts Wisconsin on the map.”
Kvalo, a UW-Green Bay graduate, said he has bootstrapped the company up to this point. After working for industry leaders such as Blizzard and 2K, he left Netflix Games in May and recently launched Midwest Games.
Using his connections at the university, he connected with TitletownTech — a collaboration between the Green Bay Packers and Microsoft — as well as other investors that joined the $3 million round.
TitletownTech Partner Cordero Barkley said the group is “thrilled” to invest in Midwest Games.
“We recognize the transformative potential of Ben’s vision and wholeheartedly support its positive impact on the games ecosystem and beyond,” he said in a statement.
Other participants in the round include Green Bay’s Tundra Angels, Brightstar Wisconsin in Milwaukee, the statewide angel network Wisconsin Investment Partners, as well as Bay Tek Entertainment owner and CEO Larry Treankler.
Looking ahead, Kvalo said the company will “more than likely” explore raising further funds at some point, but added that’s to be determined. In the gaming industry, a single game “taking off in a major way” could have a big impact on the publisher’s trajectory, he explained.
Midwest Games previously announced its inaugural title, a multiplayer fighting game called RA RA BOOM, which was developed by Cincinnati-based Gylee Games. Kvalo said his company has a second game signed on and in the works, which has yet to be announced.
“We are on the verge of signing actually a few more, three to four more titles,” he said. “So we very quickly have a very large title slate coming together, and our pipeline is just really strong. What we’re seeing is that there’s a lot of underserved developers that are just waiting to talk to somebody … We’re getting an incredible amount of inquiries.”
See the TitletownTech release: https://www.wisbusiness.com/2023/titletowntech-invests-in-midwest-games/
Hear more from Kvalo on the Midwest gaming industry:
Listen to an earlier podcast with Barkley: https://www.wisbusiness.com/2022/wisbusiness-the-podcast-with-cordero-barkley-titletowntech/
— Personal income growth in Wisconsin lagged those of its Midwest neighbors in recent years, according to a recent Stateline report.
The report, published yesterday, found certain Midwest and Mountain West states saw greater increases in inflation-adjusted per capita personal income between the second quarters of 2019 and 2023 than other parts of the country.
But Wisconsin saw smaller gains over that period than other Midwest states, with a 2.4% increase. The state’s per capita personal income in the second quarter of this year was $63,581, and the report ranked Wisconsin 28th out of U.S. states for this measure.
By comparison: Minnesota saw a 4.7% increase in personal income, reaching $71,601 in the second quarter; Iowa had 6.5% growth, reaching $62,122; Illinois had 4.1% growth, reaching $71,056; and Michigan saw 3.1% growth, reaching $59,403.
The Stateline report notes competition for workers led to higher wages in the Midwest and Mountain State region, even as inflation “took the biggest bite out of paychecks” in the western and southern states. While consumer prices rose about 20% in the West and South during the study period, that figure was 19% for the Midwest and 16% for the Northeast.
Stateline is a state policy-focused publication that’s part of the States Newsroom, a national nonprofit organization. Earlier this year, it transitioned from being part of The Pew Charitable Trusts to join States Newsroom.
See more regional trends in the report: https://stateline.org/2023/10/30/residents-of-midwest-mountain-west-see-biggest-pay-bumps/
— Gov. Tony Evers believes the $646 million Brewers stadium maintenance bill that cleared the Assembly on a bipartisan vote is a good deal for taxpayers as well as Milwaukee, and he’s lobbying Senate Dems to back the bill.
Evers told WisconsinEye he’s “encouraging people that I can influence on the Senate side” to support the bill. Evers said he backs the current version and would likely support proposed changes in the Senate such as adding a ticket tax to non-Brewers events and requiring an audit of the stadium district’s finances.
“My goal is to sign that bill, period,” Evers told WisEye on Friday. The video was posted yesterday.
The amended bill includes $411 million from the state over 27 years. Meanwhile, Milwaukee County and the city would put in $135 million. The team has agreed to contribute $100 million in addition to its rent payments and to sign a lease through 2050. It’s now slated to expire in 2030.
So far, no Senate Dem has publicly announced support for the bill. Among Dem Senate members from Milwaukee, sources tell WisPolitics Sen. LaTonya Johnson is believed to be the one most likely to support the bill if it comes up for a vote in the GOP-run Senate. Republicans control the chamber 22-11, and Majority Leader Devin LeMahieu, R-Oostburg has said he lacks the GOP votes needed to pass the bill, but was working to line up more support from his caucus.
See more at WisPolitics: https://www.wispolitics.com/2023/mon-pm-update-evers-backs-revised-brewers-bill-says-hes-lobbying-dems-to-support-it/
<br><b><i>Top headlines from the Health Care Report…</b></i>
— UW-Eau Claire is administering a $600,000 federal grant that aims to boost services and advocacy for people with brain injuries, the university announced.
And GOP state Sen. Rachael Cabral-Guevara told “UpFront” she’s short a vote in the Senate to pass a bill that would expand access to breast cancer screenings for people with an increased risk.
<i>For more of the most relevant news on COVID-19, reports on groundbreaking health research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics.com and WisBusiness.com.</i>
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#TOP STORIES#
# Proposal would allow timber industry to truck heavier loads on more routes
# More teenagers are working in Wisconsin, as legislators weigh changes
# Wisconsin won a coveted tech hub designation. See which places it beat out.
#TOPICS#
# AGRIBUSINESS
– WCMA offers new safety resources for dairy processors
http://wisconsinagconnection.com/story-state.php?Id=962&yr=2023
# CONSTRUCTION
– Federal funding encourages conversion of office space to affordable housing
– Chase Tower in downtown Milwaukee to see more renovations as it works to refill space
# ECONOMY
– Milwaukee leaders tapped for governor’s workforce and AI task force
# EDUCATION
– Wisconsin set specific goals for careers-focused education. What are they?
# FOOD AND BEVERAGE
– Wisconsin restaurant sees business spike after making national list of 50 most exciting restaurants
– Stuffing Stoughton: Luca’s Pizza serves nostalgic pies on Main
# HEALTH CARE
– 60 Wisconsin hospitals lost money in 2022
– HIV prevention medication now available at Planned Parenthood clinics in Wisconsin
# INVESTING
– Green Bay-based video game publisher raises $3M to tap Midwest talent
# LABOR
– MATC partners with We Energies, city to open power distribution training center in Metcalfe Park
# LEGAL
– Minocqua Brewing Company owner found guilty of defamation, fined $750K
# MANAGEMENT
– AGC’s Sandherr to retire in March, Shoaf to serve as next CEO
# POLITICS
– Senator Baldwin introduces organic farm bills in Wisconsin
http://wisconsinagconnection.com/story-state.php?Id=963&yr=2023
# REAL ESTATE
– Physicians Realty Trust headquarters leaving Milwaukee after $21B merger
– Physicians Realty Trust to merge with Healthpeak Properties in $21 billion deal
– This nearly vacant historic downtown office building has a new owner
# TRANSPORTATION
– Bus rapid transit: Madison now planning for north-south line
# PRESS RELEASES
<i>See these and other press releases:
https://www.wisbusiness.com/press-releases/ </i>
Northwestern Mutual: Network office in Milwaukee appoints Frank DiMeglio as Managing Partner
