2010: A Great Year for Game Industry Funding and Acquisitions

April 29, 2011 -

Video-game industry-related funding and acquisition deals rose 36 percent to a total of 210 in 2010, driven by developments in the online and social network gaming segments. This is according to new IHS Screen Digest research. The research firm said that 123 funding rounds and 87 acquisitions closed in 2010, and that the volume of activity last year was up by more than a third from the 2009's total of 154 events.

Acquisitions doubled last year, with 20 - 24 events occurring every quarter, compared to 49 acquisitions for all of 2009. Total funding for 2010 reached $1.89 billion, up 130 percent from $819 million in 2009. The numbers cover funding and acquisitions activity in all areas of the games market (excluding mobile gaming, which was tracked separately).

"Two key trends fueled the robust pace of funding and acquisitions in gaming during 2010," said Steve Bailey, games analyst at IHS. "First, it was driven by burgeoning activity in the fast-evolving sphere of online gaming, with particular emphasis on social network gaming. Second, movement in funding and acquisitions also has ramped up between Western markets and entities in Asia, centered likewise on the growth to be found in various aspects of online gaming. In particular, the global opportunity presented by versatile browser-based content, on both PC and mobile platforms, drove companies in Asia and the United States alike to embrace opportunities presented by each region, as IHS Screen Digest research shows."

The total declared value of funding deals in the social network gaming segment increased by nearly 300 percent in 2010. This data comes from a new report entitled: Games Market Monitor: Acquisitions and Funding in 2010.

The biggest funding event of the year in 2010 was Digital Sky Technologies (DST), which closed $300 million from Chinese online gaming company Tencent. DST, which was later renamed Mail.Ru.Group), has investments in both Facebook and Zynga, so its input into social network gaming in the West makes sense. Zynga received $147 million from Japanese investor Softbank. Other notable funding events include Zenimax Media’s receipt of $150 million from Providence Equity Partners, which led to its game publishing arm Bethesda Software acquiring two new studios, Arkane and Tango Gameworks.

Also last year, U.S.-based Flash-gaming aggregator Mochi Media was acquired by Chinese online gaming company Shanda for $80 million.

The report also covers notable developments on many other aspects of the games market. These include social network gaming; massively multiplayer online games (MMOG) and virtual worlds; casual gaming; core gaming; payment and billing; social technology; and edutainment, lifestyle management and gaming networks.


Comments

Re: 2010: A Great Year for Game Industry Funding and ...

2010: A Great Year of Absorbing Talent And Exploiting it.

Seriously, this is good news? This is just the renewal of the same old cycle in the games industry. Game publishers buy up lots of talented and successful studios to ride their prosperity for easy profits and then dump them when they no longer provide the rock-star profits they used to bring in. This is nothing to be optimistic about. Sure, thanks to the acquisitions, these studios are going to get more funding to pay the people that work on those games. But as soon as they loose their AAA luster, they'll be cast off like dead skin. Whereas, if they stayed independent,  a slightly less profitable release wouldn't necessarily have been the end for them. Under a company like Activision, they'd get the axe.

How many of those acquisitions are still open? How many were already doing well without a major publisher? How many are being paid to repeat their most profitable creations until we all get sick of seeing another iteration of the same popular title? How long will it be before that gets stale and lower profits prompt publishers to cull the herd? Game publishers aren't in the business of publishing games. They are in the business of providing a "product" that people will buy as many of as they can put out. If that means churning the same crap out over and over simply because people will buy it, then what incentive do they have to do anything but? They're in it for the profit. It's not for the games. Applauding more acquisitions is applauding publishers that push out more of the same stale crap because there are millions of morons willing to buy it, justifying this sick cycle of overly derivative work.

-Greevar

-Greevar

"Paste superficially profound, but utterly meaningless quotation here."

 
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ZippyDSMleeEh still rather subjective… the haters would be better off going after teen and beauty rags and magazines than fiction, fiction follows reality and going after fiction tends to turn into a bullying fest’s… plus its fiction its unrealistic to start with….02/27/2015 - 1:10am
MechaTama31That's a pretty difficult anatomy to break.02/26/2015 - 11:09pm
MechaTama31"the way her animations repeatedly break her anatomy" <-- I'm sorry, but we are talking here about the woman who can roll up into a little ball and live to tell the tale, yes? ;)02/26/2015 - 11:09pm
Andrew EisenAs far as examples that could be culled from female game characters though, that one's pretty mild.02/26/2015 - 9:11pm
Andrew EisenNot as much the heels or the suit in and of themselves but certainly the way her animations repeatedly break her anatomy to show off her lady bits.02/26/2015 - 9:10pm
E. Zachary KnightWell, Samus's heels are certainly impracticable, but I wouldn't really call her Zero suit objectified. I don't really feel that the new Lara Croft is objectified either, but that is my subjective opinion.02/26/2015 - 9:08pm
Andrew EisenTomb Raider: No but we haven't seen much of anything yet. Samus: Yes.02/26/2015 - 9:07pm
ZippyDSMleeWould you call the new tomb raider objectified? WOuld Samus Aran from the new Smash bros be objectified?02/26/2015 - 9:02pm
WonderkarpI'm hoping they put the rest of the comic book ghostbusters in there. Ortiz and Rookie(From GB the game)02/26/2015 - 8:38pm
Wonderkarpghostbusters board game is doing great. getting close too a 3rd extra playable Character. Ron Alexander.02/26/2015 - 8:37pm
Andrew EisenSmurfette is not subjective. If there's more than one female character, it's not Smurfette. Anyway, as with everything on the list, Smurfette is, in and of itself, not necessarily a bad thing.02/26/2015 - 8:32pm
Andrew EisenI think there's 5 women (out of 15, I think) but other than one being a bit more "hippy" than the others, they pretty much all have the same body type. Especially when compaired to the huge variety of male body types.02/26/2015 - 8:31pm
Wonderkarpso I dont see Smurfette as a bad thing. Unless like all your female characters are Smurfette. remember the Smurfs also had Sassette02/26/2015 - 8:29pm
E. Zachary KnightOne good example of the larger issues is one Anita used in the presentation, Blizzard's Overwatch game. There are a dozen men in the game with a dozen body types. But there are only 4 women with 2 body types, but 3 of them have the same one.02/26/2015 - 8:28pm
Wonderkarpthe smurfette thing is subjective to how many female characters you have. Take Sonic for example. You have Amy, who is obvious smurfette, but there's several other female characters now without that. Including the original animated seriescomics with Sally02/26/2015 - 8:28pm
E. Zachary KnightAE. Very true. I think that is where I was going, but it didn't come out right. Jack Harkness is sexy but not objectified. Whereas, a women would have to be objectified in order to be "sexy" in most games.02/26/2015 - 8:26pm
E. Zachary KnightAnd as Andrew pointed out, there is a big difference between a sexualized man, and an idealized man. But for some reason, there is no distinction between women in games. For the most part.02/26/2015 - 8:25pm
Andrew EisenI think one of the issues we run into repeatedly with these conversations is the confusion over "sexy" and "sexually objectified."02/26/2015 - 8:24pm
E. Zachary KnightYet, for some reason, in orde rto have a sexualized women, she must be wearing lingerie or a bikini. Can't women be sexual and still dress for the job at hand?02/26/2015 - 8:24pm
E. Zachary KnightThe problem I have with complaints of "sexualized men" is that men don't have to wear speedos to be sexualized. Captain Jack Harkness from Torchwood/Doctor Who, was one sexy man, but he spent 99% of his time in a WW2 soldier's trenchcoat.02/26/2015 - 8:23pm
 

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