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Gaming 2013: Investment and M&A Analysis, Industry Trends, and Market Outlook

Gaming 2013: Investment and M&A Analysis, Industry Trends, and Market Outlook

The gaming sector continues to represent a high growth and value sector within the digital entertainment realm. However, certain sub-segments stand-out in terms of anticipated high growth potential.

Investment trending in the gaming sector had reshaped to some degree in terms of value vs. growth in the post-Zynga era. Investments in gaming indicated signs of slumping, but gained confidence earlier in the year as evidenced by certain deal making in terms of investment and M&A. Certain gaming sub-sectors, particularly mobile, mobile-social, TV-integrated game, and middleware technology, have indicated promise for 2014 and beyond.

This research evaluates the gaming investment and M&A trends during the period 2010-2013. The report analyzes the transition of gaming business models in different gaming sectors and the impact on investment market. The role of alternative financing as a bridge to institutional investment for the gaming sector including the trending social, casual, and MMO categories. The report also evaluates major gaming M&A and investment deals from the perspective of the impact on current landscape and anticipated future market direction.

The report includes recommendations and guidance for gaming companies to attract funding and investors to choose optimal gaming sub-sectors in 2014 and beyond. The report coverage includes various usage modalities such as mobile, wireless tablet, console, and PC, as well as the influence of middleware and advertising sub-sectors.

Target Audience:

  • Digital entertainment companies
  • Data and telecommunication service companies
  • Providers of digital content, commerce, and applications
  • Investment community including private equity and hedge funds
  • Gaming companies of all types including online, mobile, and console
Companies in Report:
  • Activision-Blizzard
  • AppGenius
  • Apple
  • Boomzap Entertainment
  • Caesars Interactive
  • Chillingo
  • Concept Art House
  • DeNA
  • Disney
  • Double Down Interactive
  • DraftKings
  • Electronic Arts
  • Epic
  • Facebook
  • GaiKai
  • Gamble World
  • Game Insight
  • Gigya
  • Gloops
  • Golden Fingers
  • Google
  • GREE
  • GungHo Entertainment
  • Hattrick
  • Heyzap
  • IBM
  • IGT
  • IMI.VC
  • KakaoTalk
  • Kickstarter
  • King
  • Kwarter
  • Line
  • Microsoft
  • Mobage
  • MOVL
  • Natural Motion
  • NCSoft
  • Nexon
  • NgMoco
  • Nintendo
  • Playdemic
  • Playdom
  • Playfish
  • Playspan
  • Pokelabo
  • PopCap
  • Poppy
  • PrePlay
  • Robotoki
  • Rock Gaming
  • Rumble Entertainment
  • SecretNewCo
  • Shiver Entertainment
  • Sneaky Games
  • SoftBank
  • Sony
  • Supercell
  • Tencent
  • Twitch
  • Unity
  • Visa
  • WeChat
  • WhatsApp
  • Wooga
  • Zattikka
  • Zynga

General Methodology

Mind Commerce Publishing's research methodology encompasses input from a wide variety of sources.

We rely heavily upon our Subject Matter Experts (SME) in terms of their market knowledge, unique perspective, and vision. We utilize SME industry contacts as well as previous customers and participants in our market surveys and interactive interviews.

In addition, we rely upon our extensive internal database, which contains modeling, qualitative analysis, and quantitative data. We review secondary sources and compare to our primary sources to update previous findings (for prior version reports) and/or compile baseline information for technology and market modeling.

We share preliminary models with industry contacts (select previous clients, experts, and thought leaders) to verify the veracity of initial modeling. Prior to final report production (analysis, findings, and conclusions), we engage in an internal review with internal SMEs as well as cross-expertise, senior staff members to challenge results.

We believe that forecasts should be prepared as part of an integrated process which involves both quantitative as well as qualitative factors. We follow the following 3-step process for forecasting.

Forecasting Methodology

Step 1 - Forecasts Input: The inputs for the present and historical revenues are derived from industry players. Financial and other quantitative data for individual sub-market categories are derived from original research and tested with interviews with major industry constituents.

Step 2 - Forecasting of Future Years: Mind Commerce extends forecasts based on a variety of factors including demand drivers as well as supply side data. Key success factors and assumptions are considered.

Step 3 - Validation of Data: The final step is to validate projections, which is accomplished in consultation with both internal and external industry experts, including both topic and regional experts. Adjustments are made to the forecasts based on factors identified throughout this process.

1.0 Executive Summary
2.0 Gaming Investment Trends 2013
2.1 Second Screen Including Mobile Devices And Tv
2.2 Social Vs. Game Network
2.3 Gaming Deals
2.4 Post Zynga Era In Middleware Gamification & Social Elements Integration
3.0 Gaming Industry Trasition And Fragmentation Analysis
4.0 Gaming Sector And Business Model Analysis
5.0 Value Vs. Volume Regions
6.0 Merger & Acquisition (M&A) Review And Analysis
7.0 Gaming Venture Capital (Vc) Review And Analysis
8.0 Crowdfunding Trend And Case Analysis
8.1 Kickstarter Performance
8.2 Appgenius With Getfunded.Com
8.3 Poppy With Kickstarter For Ar Games
8.4 Golden Fingers With Indiegogo.Com For Writeon Game
9.0 Investment Case Analysis
9.1 Ibm Founder Family On Playdemic For Social Game
9.2 Zattikka Acquisition Of Hattrick, Concept Art House And Sneaky Games
9.3 Supercell Funding And Trend Around Freemium Model
9.4 Imi.Vc Investment For Game Insight
9.5 Rock Gaming Interest On Caesars Interactive
9.6 Nexon Investment To Rumble Entertainment, Robotoki, Shiver Entertainment, And Secretnewco
10.0 Conclusion And Opportunity Analysis
10.1 Opportunity Chart By Gaming Sectors
10.2 Opportunity In Mobile And Tablet Gaming Platform
10.2.1 Online And Mobile Game Company
10.2.2 Console Game Company
10.2.3 Independent Game Company
10.2.4 Telecom And Distribution Company
10.2.5 Venture Capital Firms
10.2.6 Private Equity Firms
10.3 Opportunity In Social And Casual Gaming Sector
10.3.1 Online And Mobile Game Company
10.3.2 Console Game Company
10.3.3 Independent Game Company
10.3.4 Telecom And Distribution Company
10.3.5 Venture Capital Firms
10.3.6 Private Equity Firms
10.4 Opportunity In Mmo Sector
10.4.1 Online And Mobile Game Company
10.4.2 Console Game Company
10.4.3 Independent Game Company
10.4.4 Telecom And Distribution Company
10.4.5 Venture Capital Firms
10.4.6 Private Equity Firms
10.5 Opportunity In Console And Pc Gaming Sector
10.5.1 Online And Mobile Game Company
10.5.2 Console Game Company
10.5.3 Independent Game Company
10.5.4 Telecom And Distribution Company
10.5.5 Venture Capital Firms
10.5.6 Private Equity Firms
10.6 Opportunity In Middleware Sector
10.6.1 Online And Mobile Game Company
10.6.2 Console Game Company
10.6.3 Independent Game Company
10.6.4 Telecom And Distribution Company
10.6.5 Venture Capital Firms
10.6.6 Private Equity Firms
10.7 Opportunity In Advertising
10.7.1 Online And Mobile Game Company
10.7.2 Console Game Company
10.7.3 Independent Game Company
10.7.4 Telecom And Distribution Company
10.7.5 Venture Capital Firms
10.7.6 Private Equity Firms
11.0 Recommendations And Guidnace For 2014 And Beyond
11.1 Game Companies To Attract Investment
11.2 Investors To Choose Profitable Sector
Figure 1: Apps Category vs. Gaming Apps Usage 2013
Figure 2: Mobile Game vs. Non-Game Mobile App Revenue 2010 – 2013
Figure 3: Gaming Companies Spotted in the Market Fragmentation Chart
Figure 4: Communal Gameplay Trend 2013
Figure 5: Communal Game Revenue Trend 2013
Figure 6: Business Model Trend 2013 – 2016
Figure 7: Gaming Investment Trend in Sectors 2013
Figure 8: Selected Gaming Investment & Values 2013
Figure 9: Top Countries under Value vs. Volume Regions
Figure 10: Unique Natures of Value vs. Volume Markets
Figure 11: Gaming Revenue Trend in Regions 2007 – 2016
Figure 12: Global Video Games Revnue Trend 2007 – 2016
Figure 13: Global Video Game Investment vs. M&A Volume (ex-IPOS) 2005 – 2013
Figure 14: Global Video Game Investment vs. M&A Vloume (inc-IPOs) 2005 – 2012
Figure 15: M&A Volume Trend in Gaming Sectors 2012
Figure 16: M&A Volume Trend in Gaming Sectors 2013
Figure 17: Selected M&A Deal Value 2013
Figure 18: Selected Gaming Consolidation 2013
Figure 19: Game Sector among Total Mobile VC Ecosystem Q1 2013
Figure 20: Mobile Game VC Investment 2010 – till Q3 2013
Figure 21: VC Investment in Social Gaming 2010 – till Q3 2013
Figure 22: Kickstarter Performance by Game Sector vs. Value Range 2012
Figure 23: Gaming Sectors in Consolidation and Investment Chart 2014 and Beyond

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