INVSTR INSIGHT : THE GAMES INDUSTRY
The global market for video games has been increasing since it first began in the early ’80s. Always a hit driven industry, do games companies large and small represent a worthwhile investment opportunity?
LEA JAKOBIAK (Reporter, invstr): Video games have come a really long way since the likes of pac-man.
MARK FAULKNER (Game Manager, invstr): Generally when we talk about the games industry we do of course mean video games but it’s not your only option. There are smaller providers, there are board game companies, there are other games companies that are working in this space.
LEA JAKOBIAK (Reporter, invstr): The games industry is in fact more lucrative than the film industry. It now generates over $100 billion dollars in revenue.
IAN LIVINGSTONE (Gaming Entrepreneur): If you hit it right, you hit it very right. Companies like supercell are generating seven million dollars a day, they’ve only got 180 employees, their global revenue is over $3 billion dollars a share. So if you look at the revenue per employee these are incredible numbers.
STUART MILES (Tech Expert): I think it’s a really exciting time for the games industry at the moment because there’s lots of avenues for huge amounts of potential. On the one side we’ve got virtual reality and that’s only just getting started with the launch of Oculus Rift and HTC Vive. We’ve then got PlayStation VR which I think will be the biggest of those three devices. But also we’re seeing on the mobile side of things you know a big uptake of mobile gaming.
MARK FAULKNER (Game Manager, invstr): The mobile industry is only going to increase in terms of its volume. You know we still haven’t reached 100% penetration of mobile handsets in the world market.
ANDY PAYNE (Founder of ApplyNation): The western world is going through a revitalization and entertainment is everything. So of course the global players activists are literally our take two Ubisoft. Those guys have got huge portfolios they’re invested across the piece, they know what they’re doing and they make a lot of blockbusters.
LEA JAKOBIAK (Reporter, invstr): But despite countless success stories there are risks.
ANDY PAYNE (Founder of ApplyNation): The risks are are that it is entertainment, that it is competing for time with other entertainment and leisure industries which are like film, TV’s have gone through a renaissance.
IAN CHAMBERS (CEO, Mind Candy): As the market develops it’s becoming increasingly crowded and also constantly changing in terms of monetization models, platforms, and so like any investment there’s risk but they’re just actually leads to many more opportunities.
LEA JAKOBIAK (Reporter, invstr): If gaming tickles your fancy crowdfunding is a new way to get involved.
DAN PEARSON (Editor, GameIndustry.biz): There’s also a new system called Fig which I believe is open to people worldwide. It’s a bit like Kickstarter. You go to the site, you look at the game campaign, you can invest a certain amount, you get a sliding scale which shows at what point you would start seeing a return on that investment.
LEA JAKOBIAK (Reporter, invstr): And you can find out all the information you need on the games industry in the invstr app.
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