Investment bank Digi-Capital has published the Q1 2012 update for its Global Games Investment Review of 2012.
Its figures suggest that while the social gaming market is entering a period of consolidation, the mobile market will continue to attract investment throughout 2012.
The report states that 2011 was a record year for games investment, with 152 transactions generating $2 billion transaction value. The average transaction was $13 million.
In terms of mergers and acquisitions, 2011 saw 113 transactions, totalling $3.4 billion. The average deal was $30 million.
Picking up pace
The figures for Q1 2012 show 38 transactions, which generated $248 million, at an average of $7 million.
That reduction in average transaction value stems from a decline in the social and casual sector, as the venture capital market "appears to have slowed down its frenetic pace of social games investment from 2011."
Facebook droop
Even social studios which attract high numbers of daily active users are struggling in terms of revenue and/or profitability, according to Digi-Capital's analysis of the top 50 Facebook games companies.
This, the report claims, is prompting consolidation in the social games market, and 2012 "could be shaping up as a bumper year for games mergers and acquisitions" as companies look to sell themselves.
Coupled with Zynga's recent $180 million acquisition of OMGPOP, this could lead to a change in 'operation investment dynamics' in social games, as companies attempt to churn out big hits in the hopes of being acquired at a similarly high cost.
Driving force
Meanwhile, mobile games, and mobile-social game companies in particular, are continuing to attract investment even as the wider social market moves into a period of consolidation.
In fact, in Q1 2012, mobile and MMOs have dominated in terms of investment, and mobile "could continue to be a driving force for games investment through 2012."
[source: Digi-Capital]
Top Stories
News
May 31st, 2024
Week in Views - Squad Busters goes global, broken app stores, and Hill Climb Racing gets the LEGO treatment
News
May 31st, 2024
Mobile Movers: All the latest appointments and job moves from around the industry
Events
Indie Game Fest & Indie Campus 2024 | Europe | May 31st |
Indie Craft K-Game Festival 2024 | Europe | May 31st |
BostonFig Online 2024 | Jun 1st | |
GameSummit Summer 2024 | Jun 1st | |
Gotland Game Conference 2024 | Nordic | Jun 3rd |
Games Mental Health Summit 2024 | Europe | Jun 3rd |
Dev Play Conference 2024 | Europe | Jun 3rd |
Tribeca Games Festival 2024 | North America | Jun 5th |