Given that the number of total deals isn't drastically different. What would you attribute as the main reason for the reduced total value of deals? Is it just a lower perception of potential ROI on game projects in a post COVID industry?
I think that the bubble has deflated. A lot of investors during the COVID put high expectations on gaming; a lot of capital outside of gaming came, which led to higher valuations. People understood that it was not that easy, and came back to the reasonable numbers.
2023 was indeed a bad year for the video game business in general, a ton of layoffs and a decrease on investment.
Given that the number of total deals isn't drastically different. What would you attribute as the main reason for the reduced total value of deals? Is it just a lower perception of potential ROI on game projects in a post COVID industry?
Hey Jeremy.
I think that the bubble has deflated. A lot of investors during the COVID put high expectations on gaming; a lot of capital outside of gaming came, which led to higher valuations. People understood that it was not that easy, and came back to the reasonable numbers.