Digi-Capital Global Games Investment Review 2013 – Q2 Update

Mobile has fundamentally disrupted the games market

Investment bank Digi-Capital has published the Q2 2013 Update to its Global Games Investment Review (free Executive Summary at www.digi-capital.com).

Commenting on the Review, Digi-Capital Founder Tim Merel said,

“Mobile has fundamentally disrupted the games market across sectors globally.

Mobile internet is the most disruptive technology today. Mobile internet could create up to $11 Trillion in value globally by 2025 (across all industries, not just games), built on a well developed mobile tech stack. Mobile internet connected devices, mobile broadband subscriptions, mobile data usage and mobile apps growth are driving disruption across all tech related markets. For games, the transition to free-to-play and communal gameplay is changing sector dynamics, delivering  up to 10x-20x revenue uplifts for market leaders.

Digi-Capital Global Games Investment Review Q1 2013 Transaction Update

The Connected Games Investment Gap

Games investment bank Digi-Capital has published the Q1 2013 Update of its Global Games Investment Review.

Commenting on the Q1 2013 Update, Digi-Capital Managing Director Tim Merel said, “The top line is that there is a significant connected games investment gap, despite strong underlying growth, exits and returns. It’s something we’re looking at very closely.

As we anticipated, the games investment market showed clear signs of transition in Q1 2013. Connected games revenue continues to grow across mobile and online, with the highest growth in high engagement mobile/tablet games. The games investment market stabilised to levels similar to 2012 after last year’s dramatic decline, with mobile/tablet and enabling tech/gamification dominating. Games M&A was similarly robust compared to 2012’s record, with non-US acquirers accounting for 6 of the top 10 games M&As to date this year.

Digi-Capital Global Games Investment Review 2013

Games Investment Market Transition in 2013

Digital investment bank Digi-Capital has published its Global Games Investment Review 2013.

Commenting on the Review, Digi-Capital Managing Director Tim Merel said, “The games investment market is in transition in 2013.

Online/mobile games continue to deliver strong growth and returns. Online/mobile games could grow total video games market size to $83B and take >55% revenue share at $48B in 2016F (12.2% CAGR 12F-16F). Games market M&A + IPO returns delivered > 6x investment value return on investment (ROI) between 2005 and 2012. Games IPOs have followed a 2 year cycle since 2005, with potential in 2013/2014 after no substantial games IPOs in 2012.