Global game Revenue Forecast, Unit 1 billion USD

Last year, the game company acquired a record 2018 or 280.2 billion in Asia.

According to Digital Capital (Digi-capital), the volume of global gaming company mergers and acquisitions reached a record 24 billion dollars in 2014, including IPOs and mergers. But, according to Tim Merel, general manager of Digital Capital, the gaming business is expected to show only single-digit growth in the next few years, making it even more difficult for those in the middle Tim Melors.

According to a new report released by the digital capital, a record 15 billion dollars in the gaming industry in 2014 were obtained through direct corporate sales, with the highest price of five transactions amounting to $8.1 billion trillion. The other 9 billion dollar turnover is obtained through IPOs, and most are Asian companies. "Asian companies accounted for more than half of the 2014 gaming company IPO and played a major role in the IPO of gaming companies for the past five years." "Méjols said. The Asian market is the world's largest gaming industry, according to Digital capital forecasts, the Asian Games market by 2018 revenue will reach 45 billion U.S. dollars, and then the global game revenue will reach 100 billion U.S. dollars, China, Japan and South Korea will be the Asian game market, the main driving force of income growth.

The mobile market will be the only area in the future that keeps double-digit growth, with more than half of the $24 billion trillion in corporate mergers and acquisitions in 2014 linked to the mobile market, while virtual reality is the only area that has the potential to make a breakthrough. As a result, digital capital forecasts that the composite annual growth rate (CAGR) of game software and hardware will reach 8.8% between 2014 and 2018.

Global game Revenue Forecast, Unit 1 billion USD

Steady growth will squeeze gaming companies in the middle. Large companies will cut back on spending and acquire potential independent players, while midstream companies will streamline their operations to be as flexible as independent players, while independent companies will go straight across midstream to find opportunities to be bought by large companies.

Steady growth will squeeze gaming companies in the middle. Large companies will cut back on spending and acquire potential independent players, while midstream companies will streamline their operations to be as flexible as independent players, while independent companies will go straight across midstream to find opportunities to be bought by large companies. ）

"It sounds like the game market is in very good shape. "But the growth rate is only single-digit, and that's enough to make a big variable." When there is only single-digit growth in the market, the upward trend is not enough to support all companies. Competition has evolved into a contest between excellence and good. ”

"In this growth phase of the market, large companies with hot work, large users and cash flows are investing in high cost marketing and infrastructure to ensure a steady growth in the market," he said. Independent players don't have the most popular works and scale advantages for the time being, but they also don't have high cost overhead. Although far apart, both types of companies are likely to produce popular games. The middle-level gaming companies that are sandwiched between the two are also temporarily short of popular works and scale advantages, but they have to spend on infrastructure and marketing costs. They are also likely to produce popular games, but their cost base increases their operational risk. ”

Global game Revenue Forecast, Unit 1 billion USD

In other words, mid-stream companies need to achieve massive growth in some way to avoid stagnation or recession. These companies need to find some advantages and focus on these advantages. So they have to have a large number of loyal users, or have a popular work, or have a particularly creative design team, or a market area has a very deep understanding.

In this growth scenario, the inevitable reality for all companies is that the evolving gaming industry will become complacent. Repeating yesterday's success in the same way today, next year, and even later in the future is not a recipe for growth for game companies. This is no doubt about design, distribution, marketing or any aspect of the business.