"The videogames industry is big, getting bigger and changing, with console game costs, revenue and risks accelerating and online and mobile games growing and fragmenting the market. Investment dynamics are entering a new phase, with growth investment opportunities in online and mobile games, as pure console sector growth is flat (and risky)."GDC Europe takes place in Cologne next month, August 16th-18th.
"Today online/mobile games generate around a third of all games software revenues globally. In five years' time they are forecast to generate 50 per cent of all games software revenue, or around a fifth more revenue than pure console games."
"Whether you have faith in the forecasts or not, CEOs and senior execs from the major US, European and Asian publishers all tell me that this is what keeps them awake at night. What excites me about the online and mobile games markets is that they are both high growth and profitable, which is pretty rare. The leading competitors are growing revenue 100 per cent-plus annually while also delivering 20-30 per cent EBITDA margins."
"Coupled with a fragmented industry structure, no real market dominance and clear strategic exit options to the major videogames and media companies, the time for investment is now."
Wednesday, 28 July 2010
Speaking ahead of next month's GDC Europe, IBIS Capital's Tim Merel has said he believes now is the time for mobile and online gaming investment: