To understand what Apple’s new initiatives could mean for Facebook, Snap, Google, Tencent, Amazon and Alibaba, let’s start with the AR components of Apple’s hardware roadmap we forecast in coming years:
America delivered more AR/VR revenue than China last year, but Chinese growth in the next 5 years could see it dominate AR/VR long-term – and not by a small margin. Digi-Capital’s new Augmented/Virtual Reality Report Q2 2018 shows that China has the potential to take more than $1 of every $5 spent on AR/VR globally by 2022. The natural advantages of the Chinese AR/VR market are a golden opportunity (or threat) for domestic and international players. Combine China with other major countries in the region, and Asia could deliver around half of AR/VR global revenue in 5 years’ time. Western companies might need to adopt a “we try harder” approach to compete at the same level.
Digi-Capital is partnering with Google to host its next Reality Network on Tuesday, May 29th at Google in Mountain View. Reality Network is by invitation only for AR/VR/XR CEOs, corporate VPs, and VC Partners, with numbers limited to keep the signal to noise ratio high. The focus of this Reality Network is on AR/VR/XR Leaders making money and how they’re doing it (appstore premium and IAP, eCommerce, hardware, adspend, enterprise, location based, video, games), as well as industry-wide opportunities and deals (commercial deals, partnerships, investments, M&As). Reality Network is about getting deals done, not a talking shop.
In games deal making there’s Tencent, then there’s everyone else. Tencent led or participated in over $4 of every $10 invested in games companies worldwide in the last 12 months to Q1 2018. It was involved either sell-side or buy-side in over three-quarters of all games M&A deal value (i.e. dollars) in the same period. And this is in the context of record totals (not just Tencent) over $2.1 billion games investment and over $14.4 billion games M&A in the first quarter of this year alone. Digi-Capital’s new Games Report and Deals Database Q2 2018 tracked a total of nearly $22 billion total games market investments and M&As (again not just Tencent) in the last 12 months, as well as forecasting global games software/hardware market revenue to top $165 billion this year and over $230 billion by 2022. Let’s dive into the detail to see what’s behind the numbers.
Cubic Motion, the world leader in real-time model-based computer vision and facial animation, has appointed AR/VR adviser Digi-Capital‘s Managing Director Tim Merel to its Advisory Board. As well as being a global thought leader for augmented reality, virtual reality and computer vision/machine learning, Digi-Capital provides AR/VR reports/tools, company networking, strategy consulting and investment banking. Tim is a software engineer, investment banker, lawyer and founder, and one of the most connected people across the AR/VR industry at CEO level globally. He writes regularly for TechCrunch and others on AR/VR, and is frequently interviewed and quoted in TV, radio, digital media and print internationally.