Profits obtainable in the computer games industry

Profits obtainable in the computer games industry

Profits obtainable in the computer games industry.

Games investment division Mail.Ru Games Ventures announced a strategic partnership with Epic Games, which developed the Unreal Engine. The companies join forces to support game studios around the world in the field of technology consulting, as well as finance the most promising projects

The deal is significant for the market in that Epic Games is a very good partner, there is plenty to choose from – among the company’s clients there are more than four million licensees of the Unreal Engine. This will help Mail.Ru Games Ventures find the best developers for future collaboration. Investments will be distributed on a competitive basis to both young teams and established studios to launch or scale projects. All applications will be evaluated by the investment committee.

But a competent approach will also consist in the fact that, in addition to funding, developers will receive expert support and access to analytical and marketing tools, innovative technologies in the field of information security, as well as various gaming services and marketplaces of Mail.Ru Group. Epic Games will advise teams on technology aspects of game development, including the use of the Unreal Engine.

There is an emerging symbiosis that will be quite active in the market. Suffice it to recall that a lot of money came to the Russian market for game makers. For example, at the end of January, Mail.Ru Group announced the purchase of the ESforce esports holding. The purchase price at the close of the deal was $ 100 million net of debt. Also, at the end of 2018, an additional payment will be made, the amount of which may be about $ 20 million.

Mail.Ru Group will fully consolidate ESforce and will disclose its financial results on a comparable basis. That is, the total amount of the transaction is $ 120 million. At the same time, ESforce will remain an independent holding in the united structure, this decision will not affect the status and operational work of the company. Therefore, this acquisition of the holding looked exactly like a purchase of a team for the purpose of development.

Moreover, players who seemed to be completely far from eSports began to come to this market. The MTS operator bought the Gambit Esports esports club in mid-January this year. Gambit Esports’ prize money exceeds a million dollars, last year it could have earned up to 1.5 million. This, again, demonstrates the interest in the industry.

Another landmark initiative is the IIDF’s interest in the gaming and eSports industry. The fund plans to invest 500 million rubles in the development of startups from this industry. The IIDF will begin its selection of B2B and B2C startups in partnership with the esports organization M19. Each company that has passed the selection for the program and meets certain criteria will be able to receive up to five million rubles. Last year, IIDF has already invested 160 million rubles in a gaming startup Playkey.

One of the key and most promising areas in the gaming market is virtual reality. According to the forecasts of the company Superdata, the market for virtual reality technologies by 2020 will grow more than 20 times compared to 2016 – from 1.8 billion to 37.7 billion dollars. At the end of last year, this market amounted to $ 4.9 billion, that is, grew by 168% compared to the previous period.

More and more VR devices are emerging and they are gradually becoming more affordable. In Russia, the augmented virtual reality market in 2017 amounted to 700 million rubles, which is three times more than a year earlier, the Association of Augmented and Virtual Reality calculated.

Again, according to the Group, the global esports market will reach $ 2.3 billion by 2022 (compare to $ 1.5 billion in 2017). And by the way, esports is one of the few areas that are properly regulated in Russia, and our legislation is quite progressive here. 

In our country, esports was recognized as an official sports discipline last spring, thus, athletes will be able to receive sports titles and categories. This will allow in the future to hold national championships and other world-class competitions.

The entire Russian gaming market grew in 2016 by 9% – up to 56.7 billion rubles. Mobile game revenues grew faster than other segments – by as much as 54%. 

But in the structure of revenues, mobile games account for only a third of all revenues, which is 16.3 billion rubles. This is also the case because payments in mobile games are insignificant in size.

Especially when compared to the cost of games for consoles like PlayStation or Xbox. The global games market is estimated by Superdata at $ 96.5 billion at the end of last year, with an increase to 123.5 in 2020.

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