GiG game studio shuts down as cost-cutting measure

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The Gaming Innovation Group (GiG) has ceased investment in its proprietary game studio, GiG Games, with immediate effect. The decision was announced on the company’s website on Monday.

The game studio was launched at the end of 2017 and released its first in-house developed casino game in October 2018. Since then it has developed a total of four games which have contributed negligible revenue to the business.

In its statement GiG said that the rationale behind the decision is to reduce operating expenses and concentrate focus on key strategic areas.

“This action will swiftly lead to cash savings building to approximately €250,000 per month once the full effect is realised,” the statement reads.

The four existing proprietary casino games will remain in GiG and continue to be offered to both internal and external operators. It will continue to offer its games to internal and external operators through third-party providers, and said that it could re-enter the casino games vertical at a later stage.

25 GiG games employees have received termination packages while three employees have been retained to maintain the current game studio until the end of 2019.

“The decision to halt in-house content production is a strategic choice to facilitate full focus and resources on becoming the platform of choice for the iGaming industry, ” acting CEO Richard Brown said. He added that the decision forms part of recent strategic initiatives which were taken by the company to reduce non-marketing related operating expenditure.

Earlier this month, the company replaced its Chief Executive Robin Eirik Reed with immediate effect. Richard Brown was appointed as interim CEO.