An SG gaming firm’s breakout moment after years of quiet success

It’s huge – in fact, it has sprawling tentacles in many countries – yet it’s a quick-growing beast that few have paid attention to. We’re talking, of course, about Virtuos, one of the largest game outsourcing companies in the world.

Despite few gamers having heard of the name, the Singapore-headquartered firm helps 18 of the world’s 20 largest game companies churn out hits like Assassin’s Creed, Shadow of the Tomb Raider, Star Wars Jedi: Fallen Order, and Final Fantasy XII: The Zodiac Age.

Virtuos’ work on Ratchet & Clank: Rift Apart / Image credit: Virtuos

Beyond its work in triple-A games, Virtuos also does character art and asset development for blockbusters including Black Panther, The Avengers, and Star Wars: The Force Awakens.

Work from clients comes in such large amounts that the company grows about 20% to 25% each year. It has turned a profit for every quarter of its 17-year history – save in 2013, when demand for the production of PlayStation 4 and Xbox One games fell, CEO Gilles Langourieux tells Tech in Asia.

For 2020, Virtuos recorded some US$90 million in revenue, total earnings before interest, taxes, depreciation, and amortization (EBITDA) of about US$15 million, and a 35% growth rate, the CEO says. He adds that the company expects to grow a further 50% in 2021.

With figures like these, it’s little surprise that Virtuos – which was founded in Shanghai in 2004 on US$250,000 that Langourieux earned from stock options with former employer Ubisoft – is largely self-funded, with the CEO and the rest of the management team owning over 70% of the company.

But that changed significantly last month with the raise of a US$150 million round from Baring Private Equity Asia. What it does with the money could catapult it into the public eye.

Image credit: Timmy Loen

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Virtuos’ enviable growth numbers are based on a business model that shies away from actual game publishing. Instead, its team of artists, engineers, and producers hustle quietly behind the scenes to help big clients develop triple-A console and mobile games, create 3D art, as well as remaster and port these titles for different platforms.

“This approach is less risky than the traditional game creation model, which is hit-driven,” Langourieux says.

He jokes that being a contractor is “not the most intelligent” business model, but it has given the company stability, profit, and success. “If I look around, we’re surrounded by clients who are growing faster and doing better than we are. But if we look at the growth curve for the group, whether it’s headcount, revenue, or profit, it’s regular. I like that predictability.”

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