This year has seen $25 billion of games deals in just over 9 months.
This impressive news however, could mean we’ve hit the top of the market, as detailed in Digi-Capital’s new Games Report Q4 2018.
Last time this happened, games investment and M&A plunged into a games deals ice age at the lowest level in a decade. The games deals cycle has swung from boom to bust twice already since 2010, so the next 6 months will determine if history repeats itself or the dollars continue to flow.
$3.8 billion was invested in games companies between January and September, which is 50% higher than the previous full-year record from 2017. Games M&A also hit a near record $20.1 billion in the first three quarters. But as Digi-Capital forecast at the start of the year, the games IPO market has plunged over 90% from 2017’s record $17.1 billion to just $1.1 billion in 2018. While Epic Games’ $1.25 billion investment round in Q4 has already taken games investment over $5 billion for full-year 2018, these dynamics could still be early signs of game over (for now).
You can read the complete release with games investment, M&A and IPO analysis and infographics at www.digi-capital.com/news/2018/10/record-25-billion-games-deals-could-signal-top-of-the-market/, with the full details in Digi-Capital’s Games Report Q4 2018 at www.digi-capital.com/reports/#global-games-investment-review