I read an article on Gamasutra that somewhat blew my mind. I know I should probably take predictions with a grain of salt but these investment predictions do tell a past, current and future trend. Digi-Capital investment bank released their Global Games Investment Review 2014 noting video game investments continuing to grow but primarily on mobile games and gamification technology. Digi-Capital’s prediction: mobile and online games will continue to grow with expected revenue of $60 billion by 2017. This revenue will add to the overall games industry revenue that could very well exceed $100 billion by 2017. They also account that mobile and online games will take up 60 percent of the games market. The target market in 2014: Asia and Europe.
Let’s wrap our heads around this for a second.
By these predictions its safe to say that right now, mobile and online game revenue are booming especially with Android and iOS having thousands of game apps and these games using in-game purchases. Developers are literally making a “killing” off suckers every day even though the app may be free or less than $2.00. So how can the average joe get into “Gold Rush” and perhaps before the “free-to-play” model completely bursts?
How To Research Investments
Now is the time to start learning how to invest alongside spending all your hard-earned cash on your games. There’s no reason why we can’t invest in the same products we spend money on. You may not like the “Farmville” type of games, but they make very big money for their investors and shareholders. What I do is sign up or get my hands on reports that talk about the state of the games industry, marketing trends, investments, etc. After reading those reports, you can follow the “BIG PLAYERS” of the game to see what they are doing. In this investment case, Asian companies are buying up or merging within the games industry providing the top mergers and acquisitions.
You could also go to an investment bank that specializes in games, media and technology like Digi-Capital and ask how to invest in these companies. Start with small investments, never go past what you know you can’t cover in case your investment goes south. Once you make your investments, you will watch your money rise because of millions of purchases of these game apps and people making in-game purchases. You don’t need to be greedy, but enough “suckers” might help pay for your mortgage or rent. Just saying.
Download Digi-Capital’s Reports here.
Do you agree with these predictions and trend for mobile and online games?
Do you think it’s a smart move to start investing in the games industry? Do you already invest? If so, tell us your experience.