Games deals value dropped 81% in 2015

January 2016

Caution_Steep_Slope

The last time games deals looked like last year, the iPhone had just launched – it was 2007.

The total deal value (in dollars) across games investments, mergers and acquisitions (M&As), and IPOs dropped below $5 billion in 2015, down 81 percent on the prior year. Games investment value fell by 30 percent, games M&A deal value dropped 75 percent (excluding Activision-Blizzard/King which was announced but hasn’t closed yet), with the games IPO market at its lowest level for a decade. After more than $25 billion of games deals in 2014, the difference last year was remarkable.

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Games to grow from $90B in 2016 to $115B by 2020

January 2016

shutterstock_61667629 croppedThe games market continues its transition, with leaders consolidating their positions as the balance of power shifts across sectors. The coming years could be both “steady as she goes” for some, and a rollercoaster (up and down) for others. Games software revenue could grow from over $90B in 2016 to top $115B by 2020. Big, solid numbers, but long term growth appears to be slowing to a steady 7% CAGR (a fancy term for annual growth). The current single digit growth games market looks very different to the go-go years gone by, so let’s see who’s up and who’s down.

Changing of the guard

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AR/VR investment in 2015 breaks out near $700 million

January 2016

Digi-Capital ARVR InvestmentsDigi-Capital’s new Augmented/Virtual Reality Report 2016 and AR/VR deals database captured $686 million of investments in augmented and virtual reality in 2015. There have now been 6 straight quarters of AR/VR investment growth, with a quarter of a billion dollars invested in Q4 2015 alone at nearly 6x the rate of mid-2014. The 2015 numbers are even more impressive considering that Magic Leap’s monster round from 2014 and even larger reported (but as yet unconfirmed by the company) round from late 2015 are not included.

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Augmented and Virtual Reality 1.0 – 2016 Preview

December 2015

Digi-Capital ARVR Leaders Q4 2015

Samsung/Oculus’ Gear VR launch was the starting gun for AR/VR 1.0, so what can we expect next year? Strap on your magic goggles, it’s immersion time.

Consumer VR 1.0

You couldn’t miss the electrons (digital and TV) and trees sacrificed to VR this year. While 90s VR was a poor beta, this time around it really is different. The new wave includes Facebook/Oculus, Samsung, HTC/Valve, Sony and Google amongst others (maybe even Nintendo?). Apple bought Metaio. These guys are serious, and it isn’t their first rodeo.

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