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Value of games industry investments drop 48 per cent during first half of 2015 - MCV

Value of games industry investments drop 48 per cent during first half of 2015

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If you're looking to invest in games, now's the time.

That's according to a new report from technology analyst Digi-Capital, which states that investments in the industry have almost halved in value (down by 48 per cent) during the first half of 2015 compared to 2014.

This follows 2014's own slump in investment value, down 25 per cent from its peak in 2011.

Meanwhile, the total value of games deals plummeted by 87 per cent during the same time.

That's due to the sheer scale of the huge partnerships inked in 2014, including Microsoft's $2.5 billion acquisition of Minecraft studio Mojang.

All in all, games mergers and buyouts equalled a mighty $24 billion last year, with the five biggest deals comprising $8.1 billion – around a third – of the total.

Digi-Capital additionally predicts that games software revenue with rise eight per cent per annum from this year until 2018, growing from $88 billion in 2015 to $110 billion over the next three years.

Deal-making is a game of two halves,” observed Digi-Capital MD Tim Merel.

When times are good for entrepreneurs and investors, they are hard for corporate acquirers. The go-go years of games deals between 2011 and 2014 were exceedingly kind to sellers, but now the buyers have smiles on their faces at the end of valuation negotiations.

For games market leaders with strong IPs, cash flows, and balance sheets, it doesn't get much better than this.”

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