Games software and hardware combined are set to drive more than $150 billion in revenue for the first time ever in 2017, with software taking around three-quarters and hardware around one-quarter of the total.
Where the Digi-Capital ‘Augmented and Virtual Reality Report Q1 2017’ deals database tracked $1.5 billion investments in the last 12 months up to Q1 2017, there was only $600 million of M&As in the same period.
Aided by the adoption of popular franchises onto mobile devices, 2016 has seen strong growth in the number of games accessed on smartphones. Both new, optimized titles — in terms of engagement and revenue generation — and reworked classics have proved to be a hit with consumers.
Source: Digital Lifescapes
Last year was a record breaker for games, with Digi-Capital’s Games Report 2017 recording $30.3 billion games deals in 2016. The $28.4 billion of games mergers and acquisitions (M&A) was 77% higher than 2014’s previous record, and $1.9 billion games investment was the second highest ever.
Games M&A reached a record $18.6 billion in the first half of the year, in a clear sign of late stage market consolidation. After last year’s games market saw deals drop by 81%, the first half of 2016 is up by nearly 1,000% when compared to the rate of deals in 2015.
Gaming sales revenues in China reached $21 billion in 2015, that’s up by 22.1% year-on-year. During the year, the number of gaming users in the country stood at 537 million person-times, with a per capita value of contribution of US$39.