DDM just released its 3rd quarter summary of the video game industry, reporting that investment in the space continues to outpace the record levels of 2020
Simply put, DDM says the game sector is on a “tremendous investment pace.”
Video gaming, the industry and investor returns are… on fire!
Q3 saw over 150 investment deals worth over $9 billion. Investments in the industry, year-to-date, are more than 2.5X higher than at the same point in 2020. And there is little, if any, signs of it slowing down.
There were at least 85 M&A deals in Q3, with a disclosed value of over $6 billion. Two of the largest deals included the SpinX acquisition by Netmarble and the Playdemic acquisition by Electronic Arts.
Larger players like EA are gobbling up startups and smaller devs at a record pace. Investors who are playing the startup and smaller developer market have seen some tremendous gains as the valuations in this corner of the market have soared.
With investment and M&A continuing its “tremendous investment pace,” look for these smaller companies to see valuations rise as competition over their games and technology could force bidding wars between the big players.
While many retail investors have focused their gaming portfolio on the larger developers, it’s the investors in startups and smaller game-tech companies that could stand to be the biggest winners.
Read more about the DDM report, HERE
Or learn about a startup game-tech company with patents, HERE