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

1. Gaming 2013: Investment and M&A Analysis, Industry Trends,
and Market Outlook
http://mindcommerce.com/Publications/Gaming2013_InvestmentM%26A_MktOutlook.php
Published: Nov 2013
Single User: $995.00
Pages: 41
Order Now
Company Wide:$2,995.00
Order Now
Team License:$1,995.00
Order Now
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:

2. 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
GetFunded.com
Gigya
Gloops
Golden Fingers
Google
GREE
GungHo Entertainment
Hattrick
Heyzap
IBM
IGT
IMI.VC
Indiegogo.com
KakaoTalk
Kickstarter
King
Kwarter
Line
Microsoft
Mobage
MOVL
Natural Motion
NCSoft
Nexon

3. 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
Table of Contents:
1.0 EXECUTIVE SUMMARY 5
2.0 GAMING INVESTMENT TRENDS 2013 7
2.1 SECOND SCREEN INCLUDING MOBILE DEVICES AND TV 7
2.2 SOCIAL VS. GAME NETWORK 7
2.3 GAMING DEALS 8
2.4 POST ZYNGA ERA IN MIDDLEWARE GAMIFICATION & SOCIAL ELEMENTS
INTEGRATION 8
3.0 GAMING INDUSTRY TRASITION AND FRAGMENTATION ANALYSIS 9
4.0 GAMING SECTOR AND BUSINESS MODEL ANALYSIS 13
5.0 VALUE VS. VOLUME REGIONS 17

4. 6.0 MERGER & ACQUISITION (M&A) REVIEW AND ANALYSIS 20
7.0 GAMING VENTURE CAPITAL (VC) REVIEW AND ANALYSIS 25
8.0
8.1
8.2
8.3
CROWDFUNDING TREND AND CASE ANALYSIS 27
KICKSTARTER PERFORMANCE 27
APPGENIUS WITH GETFUNDED.COM 28
POPPY WITH KICKSTARTER FOR AR GAMES 28
8.4
9.0
9.1
9.2
GOLDEN FINGERS WITH INDIEGOGO.COM FOR WRITEON GAME 28
INVESTMENT CASE ANALYSIS 29
IBM FOUNDER FAMILY ON PLAYDEMIC FOR SOCIAL GAME 29
ZATTIKKA ACQUISITION OF HATTRICK, CONCEPT ART HOUSE AND SNEAKY GAMES
29
9.3 SUPERCELL FUNDING AND TREND AROUND FREEMIUM MODEL 30
9.4 IMI.VC INVESTMENT FOR GAME INSIGHT 30
9.5 ROCK GAMING INTEREST ON CAESARS INTERACTIVE 30
9.6 NEXON INVESTMENT TO RUMBLE ENTERTAINMENT, ROBOTOKI, SHIVER
ENTERTAINMENT, AND SECRETNEWCO 31
10.0 CONCLUSION AND OPPORTUNITY ANALYSIS 32
10.1 OPPORTUNITY CHART BY GAMING SECTORS 32
10.2 OPPORTUNITY IN MOBILE AND TABLET GAMING PLATFORM 33
10.2.1 ONLINE AND MOBILE GAME COMPANY 33
10.2.2 CONSOLE GAME COMPANY 33
10.2.3 INDEPENDENT GAME COMPANY 33
10.2.4 TELECOM AND DISTRIBUTION COMPANY 33
10.2.5 VENTURE CAPITAL FIRMS 33
10.2.6 PRIVATE EQUITY FIRMS 34
10.3 OPPORTUNITY IN SOCIAL AND CASUAL GAMING SECTOR 34
10.3.1 ONLINE AND MOBILE GAME COMPANY 34
10.3.2 CONSOLE GAME COMPANY 34
10.3.3 INDEPENDENT GAME COMPANY 34
10.3.4 TELECOM AND DISTRIBUTION COMPANY 35
10.3.5 VENTURE CAPITAL FIRMS 35
10.3.6 PRIVATE EQUITY FIRMS 35
10.4 OPPORTUNITY IN MMO SECTOR 35
10.4.1 ONLINE AND MOBILE GAME COMPANY 35
10.4.2 CONSOLE GAME COMPANY 36
10.4.3 INDEPENDENT GAME COMPANY 36
10.4.4 TELECOM AND DISTRIBUTION COMPANY 36
10.4.5 VENTURE CAPITAL FIRMS 36
10.4.6 PRIVATE EQUITY FIRMS 36
10.5 OPPORTUNITY IN CONSOLE AND PC GAMING SECTOR 37
10.5.1 ONLINE AND MOBILE GAME COMPANY 37

5. 10.5.2 CONSOLE GAME COMPANY 37
10.5.3 INDEPENDENT GAME COMPANY 37
10.5.4 TELECOM AND DISTRIBUTION COMPANY 37
10.5.5 VENTURE CAPITAL FIRMS 38
10.5.6 PRIVATE EQUITY FIRMS 38
10.6 OPPORTUNITY IN MIDDLEWARE SECTOR 38
10.6.1
10.6.2
10.6.3
10.6.4
ONLINE AND MOBILE GAME COMPANY 38
CONSOLE GAME COMPANY 38
INDEPENDENT GAME COMPANY 38
TELECOM AND DISTRIBUTION COMPANY 38
10.6.5 VENTURE CAPITAL FIRMS 38
10.6.6 PRIVATE EQUITY FIRMS 38
10.7 OPPORTUNITY IN ADVERTISING 39
10.7.1 ONLINE AND MOBILE GAME COMPANY 39
10.7.2
10.7.3
10.7.4
10.7.5
CONSOLE GAME COMPANY 39
INDEPENDENT GAME COMPANY 39
TELECOM AND DISTRIBUTION COMPANY 39
VENTURE CAPITAL FIRMS 39
10.7.6 PRIVATE EQUITY FIRMS 39
11.0 RECOMMENDATIONS AND GUIDNACE FOR 2014 AND BEYOND 40
11.1 GAME COMPANIES TO ATTRACT INVESTMENT 40
11.2 INVESTORS TO CHOOSE PROFITABLE SECTOR 41
Figures
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
1: Apps Category vs. Gaming Apps Usage 2013 9
2: Mobile Game vs. Non-Game Mobile App Revenue 2010 – 2013 10
3: Gaming Companies Spotted in the Market Fragmentation Chart 12
4: Communal Gameplay Trend 2013 13
5: Communal Game Revenue Trend 2013 14
6: Business Model Trend 2013 – 2016 15
7: Gaming Investment Trend in Sectors 2013 15
8: Selected Gaming Investment & Values 2013 16
9: Top Countries under Value vs. Volume Regions 17
10: Unique Natures of Value vs. Volume Markets 18
11: Gaming Revenue Trend in Regions 2007 – 2016 18
12: Global Video Games Revnue Trend 2007 – 2016 19
13: Global Video Game Investment vs. M&A Volume (ex-IPOS) 2005 – 2013 20
14: Global Video Game Investment vs. M&A Vloume (inc-IPOs) 2005 – 2012 20
15: M&A Volume Trend in Gaming Sectors 2012 21
16: M&A Volume Trend in Gaming Sectors 2013 21

6. Figure 17: Selected M&A Deal Value 2013 23
Figure 18: Selected Gaming Consolidation 2013 24
Figure
Figure
Figure
Figure
Figure
19:
20:
21:
22:
23:
Game Sector among Total Mobile VC Ecosystem Q1 2013 25
Mobile Game VC Investment 2010 – till Q3 2013 26
VC Investment in Social Gaming 2010 – till Q3 2013 26
Kickstarter Performance by Game Sector vs. Value Range 2012 27
Gaming Sectors in Consolidation and Investment Chart 2014 and Beyond 32
Contact: Kabir Ahmad, Email: kabir@mindcommerce.com