The Games Report Q1 2019 tracked companies raising $5.7 billion in 2018, which was over twice the previous record investment from 2017. Epic Games’ $1.25 billion was the largest round raised last year, and the largest non-IPO games investment of all time.
via Digi Capital
AR (mobile AR, smartglasses) could approach 3.5 billion installed base and $85 billion to $90 billion revenue within 5 years. Meanwhile, VR (mobile, standalone, console, PC) might deliver 50 to 60 million installed base and $10 billion to $15 billion.
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.
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 hit another record this month, topping $25 billion to July 2016 with the $4.4 billion acquisition of Playtika by a Chinese consortium led by Giant. Digi-Capital forecasts total games software revenue growth slowing to 7% CAGR from $91 billion in 2016 to $116 billion by 2020.
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.