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Overwolf was founded in 2010, in Tel Aviv, Israel. The company focuses on software and applications targeted at the hard-core gaming industry. The Overwolf platform allows users and developers to create overlay applications for video games on PC. Overwolf provides an SDK that allows players and developers to create a plethora of apps for any game that Overwolf supports. The apps are free to download and are intended to enhance a player's gaming experience. The apps focus on eSports, video, tools and social communication, while offering in-game services which don't require players to leave the game.

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Zirra Rated Overwolf


Commentary

Business & Marketing Strategy: The gaming industry is constantly evolving and innovating, therefore Overwolf has made it a priority to be consistent with updating its social media platforms. Over 79,000 people like Overwolf on Facebook, and over 5,000 followers on Twitter. The sales of video games usually ramp up during the holiday season as the "blockbuster" games are typically released in this period of time and video games are popular gifts for the holidays. We can see the increase in social media activity from Overwolf during this time period as well. As for Overwolf's business strategy, the company earns revenue from in-app advertising and displaying advertiser's logos on in-game apps. There was some mention of Overwolf's business strategy evolving to include charging users for premium apps and services from their platform, but currently Overwolf says they make money from displaying advertisements on their apps.

Competitive Position: Overwolf has four main rivals in the market for in-game apps and in-game application development. Xfire, acquired by Viacom in 2006 for $102M, has 22 current employees, and had raised $17M, roughly triple that of Overwolf's current funding, before the acquisition. Xfire claims to have over 22 million registered users. Valve, the video game software and technology company, created Steam, which is an online gaming platform connecting users. Valve has approximately 600 employees and reported earnings of $3.5 billion in 2015. PLAYXPERT has only four employees listed on Linkedin and has no profile on Crunchbase. Raptr has amassed $44M in funding, has over 50 employees, and claims to have over 21 million users. From these numbers, It appears that Overwolf is not in a leading position at the moment and may find it difficult to get there.

Market Forecast & Exit Indicators: Statista claims that the estimated revenue for the U.S. video game industry in 2016, so far, is $5.99 billion. This number does not reflect the months of October, November, and December which are the biggest months for the industry in terms of sales as it coincides with the U.S. holidays. In November and December 2014, the U.S. video game industry did $2.42 billion and $3.26 billion in retail revenue respectively. In 2015, during the months of November and December, the U.S. video game industry earned $2.47 billion and $3.22 billion respectively. From these numbers of recent years, we expect a continuation of the dramatic increase in sales over the coming months, and strong retail numbers for the video game industry for years to come. There are currently no indications that Overwolf is looking to exit or IPO in the near future. Xfire is the only competitor that has been acquired, and Steam was created out of Valve, so it is difficult to say how the market views Overwolf as a potential target for acquisition.

Professional & Customer Reviews: Reviews of Overwolf are positive. Software Informer says, "Pros: Very easy to use, [and] It's free." Gamespot, a website for video game news and reviews, has a discussion forum on Overwolf. One user on Gamespot said, "[Overwolf] Looks pretty cool, especially with the social network feed right there. (and video recording)." Another user on Gamespot said, "Wow...this is kind of awesome...really awesome." There is some healthy skepticism though, with another Gamespot user saying, "Its a very cool and useful program but is not developed by a major company in which i can put my trust." So the overall sentiment is the ease of use is attractive to users, but Overwolf does not yet have the name recognition for some users to put in their full trust.

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