DDM Games Investment Review Q2 Report

COVID-19 uplift increased 5-year CAGR by 11.6% to 7.7% + Q2 2020 Report Available

As we head into the second half of 2020, video games have continued to prove resilient to the stress of pandemic and economic uncertainty. In fact, the COVID-19 pandemic has led to an increase in gaming as more people sheltered at home. The result has been a parade of headlines of company after company reporting record monthly revenues and player engagement. We have revised our annual revenue forecast, resulting in an increase of the 5-year CAGR by 11.6% to 7.7%, with the total games industry reaching over $285 billion in 2024 across hardware and software. On the investment and M&A side, 2020 began with a slow Q1 but Q2 shows a general return to a healthy value and volume of deals.

Investments

After a slow Q1 2020 for investments, the value of tracked investments for Q2 quadrupled the previous quarter while the volume increased +18%. Q2 2020’s 86 investments reached $3.8 billion and brought the total for the first half of 2020 to nearly $4.7 billion. Q2’s value exceeded each of the previous eleven quarters! Mobile and eSports investments were the most active sectors followed by Tech/other and Console/PC and MMO/MOBA. Keep reading.