Ares Interactive announced a $70M Series A on February 3, marking a rare large early-stage investment in a contracting gaming market. General Catalyst led the round, with participation from Chairman Niccolo de Masi.
The Austin startup, quietly active since May 2025, operates two studios: 7th Inning in San Francisco and Swift Games in Berlin. Swift's Heroes vs Hordes has generated over 13 million installs. The company's next title, Baseball Hits 26, launches later this year with licensed players.
What makes this raise notable: Ares is betting on AI across the entire game lifecycle, from development to marketing to live operations. The leadership team includes President Mike DeLaet, former App Store head Matt Fischer, and veterans from Kabam, Glu, and Seriously. These are operators who know F2P monetization, not just in theory.
The F2P sports game market is crowded, and baseball is niche outside North America. Successful titles in this category balance three monetization pillars: cosmetics (player uniforms, stadium themes), battle passes (seasonal content drops), and progression systems that avoid pay-to-win mechanics. The best performers keep whales spending while maintaining free player retention.
The real test isn't the funding, it's execution. Can Ares ship games that work across platforms? Can their AI tools actually reduce development costs or just add complexity? Will Baseball Hits 26 find an audience in a market dominated by established titles?
General Catalyst's thesis: AI-powered workflows plus experienced F2P operators could build sustainable franchises at lower burn rates. The alternative view: AI in game development is still unproven at scale, and throwing $70M at it during a pullback is optimistic timing.
We'll know more when the first game ships. Until then, this is a significant bet that the intersection of AI and F2P game development is ready for serious capital.