Millions of people around the world play PlayWay games, often unaware that this company is behind the latest mechanic simulator, border guard simulator, or any other profession-based game. Today, we will delve into the unique structure of PlayWay to understand why ideas are more important than budgets and how the company manages dozens of studios.
Contents:
- The Origins of PlayWay: From Cardboard Games to a Diversified Holding
- PlayWay's Business Structure: How to Manage 60 Studios
- Key Assets of PlayWay: "Star" Studios within the Holding
- How to Develop Games That Pay Off Tenfold or Hundredfold
The Origins of PlayWay: From Cardboard Games to a Diversified Holding
The main protagonist of this story is the Polish entrepreneur Krzysztof Kostowski. In 1991, he and his older brother Jacek founded the company Play, soon opening a stall in one of Warsaw's computer markets. The brothers recorded games on diskettes and CDs, selling them for several dozen zlotys per copy.
In the '90s, Grzybowska Street in Warsaw became a magnet for many budding entrepreneurs now known worldwide. Next to Kostowski was Michał Kiciński, co-founder of CD Projekt, and Marek Tymiński, head of CI Games. Similarly, in Wrocław, Techland's founder Paweł Marchewka was also taking his first steps in this domain.
While companies like CD Projekt or Techland gradually shifted to creating their own large-scale projects, Kostowski chose a different path.
The computer market on Grzybowska Street (footage from a Maniak Gaming video)
After Poland tightened its anti-piracy laws in 1994, Play focused on distributing trial versions of titles. Around that time, the company discovered another successful business model—selling inexpensive games in newspaper kiosks on a cardboard backing, known as tekturki (from Polish, meaning "cardboards").
Imagine a hypothetical "Game Mania," where only the disks remain, and instead of a magazine with articles, there is a vibrant A4-sized cardboard. Play recorded inexpensive games and programs on CDs, printed cardboard backings, and delivered them in bulk to Polish newspaper kiosks on a monthly basis.
“At large volumes, the cost of producing such a ‘monthly’ was less than 1 zloty, and they sold for 5-10 zlotys each,” recalls Kostowski in an interview.
Maluch Racer 3 and other game "cardboards" from Play (Scans: Play Publishing)
The secret to Play's success was simple—purchase licenses for low-budget games and sell them with the highest possible margin. At its peak in 2005, the company sold up to half a million such "cardboards" a month, with profits reaching 5 million zlotys a year (approximately $1.5 million at the time).
In the 2000s, Play also actively expanded its publishing business and released its own titles. Among them was the popular Polish racing game series Maluch Racer, dedicated to the Fiat 126p (known in the country as Maluch, or "the little one").
Play-publishing website
As the popularity of newspaper kiosks waned, Play's "cardboard" business gradually disappeared. The Kostowski brothers decided to part ways, and in 2011, Krzysztof founded PlayWay.
He realized that it was time to adapt to new market realities. Digital distribution replaced game cardboards, and Steam took the place of kiosks.
One constant remained in Kostowski's business approach—a focus on numerous low-budget games meant to diversify risks. All that was needed was to pick the right niche.
Drawing on 20 years of game sales experience, Kostowski concluded that "simulator games have always been in demand." Starting with the success of Car Mechanic Simulator 2014, various professional and activity simulators became PlayWay's signature.
Car Mechanic Simulator 2014 — PlayWay's first hit in the simulator genre
The second significant aspect of Kostowski's economic model was his approach to business development. Since 2011, PlayWay has invested in small teams, acting as their publisher or creating projects through internal teams or subsidiaries.
By 2015, 44 teams across Poland were working on its games. Each year, the number continued to grow, gradually transforming PlayWay into a broad holding that employs hundreds of developers.
In 2016, PlayWay went public on the Warsaw Stock Exchange. As of today, its capitalization stands at 1.85 billion zlotys ($486.9 million). This surpasses the market values of renowned Polish developers and publishers like Huuuge Games ($360 million), Bloober Team ($145 million), 11 bit studios ($127.6 million), and CI Games ($85.3 million).
Among the two dozen gaming companies in the WIG-gry index, PlayWay ranks second only to the local giant CD Projekt, valued at $5.8 billion.
PlayWay's Business Structure: How to Manage 60 Studios
PlayWay is a public company with its headquarters in Warsaw. Along with its subsidiaries, it forms the PlayWay Capital Group. According to the latest financial report, it includes 38 subsidiary studios.
To clarify potential confusion, a few notes need to be made.
PlayWay does not own a majority stake in all its "subsidiaries." It may own up to 100% of some, while having less than 50% ownership in others (yet still serving as a key investor). Some of these subsidiaries are also publicly traded, but for these nearly four dozen legal entities, PlayWay is regarded as the parent company.
All studios follow a unified accounting principle and might eventually be absorbed by the headquarters. However, the parent PlayWay rarely opts for direct mergers, preferring to remain a relatively small company.
For easier evaluation of the holding’s financial position, subsidiary studios are categorized into four groups based on their impact on PlayWay’s revenue and profit:
- Group A — companies with successful games in their portfolio that significantly impact PlayWay’s financial performance;
- Group B — release games but do not noticeably affect outcomes;
- Group C — working on their first games (usually in early development stages);
- Group D — do not engage in video game production (currently, there are no such companies within PlayWay).
Additionally, the PlayWay Capital Group holds interests in 25 more studios (effectively 26, although one, Evor Games, is being liquidated). These are referred to as "affiliated companies" — essentially external partner companies that PlayWay influences significantly through direct investments.
PlayWay studios in Poland
The holding’s stake in these affiliated legal entities ranges from 20% to 50%. Some may eventually become subsidiaries, while PlayWay might discontinue its ties with others in favor of new investments.
Thus, PlayWay has control over 63 companies (as of December 31, 2024). They are all based in Poland. Among them are both small startups and more established companies, totaling dozens (if not hundreds) of teams of varying sizes.
The main shareholder of PlayWay remains Kostowski, holding 40.9%. A Cyprus-based investment firm, ACRX, owns an equivalent share, with the remaining 18.2% of shares available on the open market.
PlayWay shareholders
Despite such a complex structure, comparatively few people work at PlayWay itself. Though exact figures are unavailable, LinkedIn indicates the headquarters staff numbers only a few dozen employees, most of whom are developers.
The core management of the parent company, PlayWay, consists of three people: