Video Game Investments Doubled In 2011

A new report from investment bank Digi-Capital has found that the number of video game investments in 2011 is nearly double that of 2010, while the number of global games mergers and acquisitions in 2011 is more than double that of 2010.

As part of the Global Games Investment Review 2011, Digi-Capital managing director Tim Merel explained that most of these actions have been occuring as part of the social, mobile, browser-based MMO and cloud gaming sectors.

As well as this shift to online and mobile games, the report noted that many major console publishers are “struggling to adapt” to the rapidly growing sector, and therefore are not driving investments as much.

Merel said that, according to the company’s study, “now is a great time for the strongest independent online/mobile games companies to either invest for growth, or take advantage of the market to look for strategic exits.”

The report did note that console game investment is still accelerating, but that investment has “no guarantee of success, with major console publisher strategies appearing to have converged on fewer franchises, refreshed more often with higher marketing budgets.”

Elsewhere, the report noted that there has been “significant activity” in online gaming from China, Japan and South Korea, and that China should be dominating the global games market by the end of the year.

Digi-Capital suggested that China will take 49 percent of the worldwide revenue share for online and mobile gaming, while Europe will take 17 percent and Japan 14 percent. However, the report did note that North America “remains important” in the sector.

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