Video games investment review – still no obvious way to play mobile

By April 1, 2010Uncategorized

Earlier this week Tim Merel of IBIS games put the above presentation up on Slideshare.  It is a thorough review of all sectors of the video games industry and from a venture investing perspective the obvious conclusion is that mobile is the most interesting sector to be playing in terms maturity of the segment and growth characteristics.  The challenge is that EA is already the market leader with 34%, which makes it harder to compete and rules out a Playfish style deal, and that there are few models out there which offer both barriers to entry and the opportunity to scale.

ngmoco of the US (and similar European companies Scoreloop and Chillingo) are perhaps the closest to being an exception as they seek to build a social network around their games which offers both the ability to scale via cross promotion within the games on their network and the barriers to entry that come with the network effects.


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  • conradpoulson

    Any thoughts as to whether Alternative Reality Gaming might add something interesting to mobile?

  • Hi Conrad – good question. My first thought is that the middleware play a la Layar is the most interesting, but there may be something larger analagous to social gaming if someone can find a new distribution model.

  • Leo

    really a good report, ding!

  • Marianelagar1940

    I invested 95000 € on these guys. They're a start up but seem to be going down the right track in the mobile games business.