Total video games investment stands at over $5bn for 2018

Total video games investment stands at over $5bn for 2018

The amount of money funding scored by games companies between January and September rose by 50 per cent year-on-year.

That's according to research firm Digi Capital, which reports that these firms have scored $3.8bn in the first nine months of 2018. The company notes that the $1.25bn investment won by Epic Games has taken the total figure for this year over $5bn.

In addition, there has been $20.1bn of M&As in the same nine-month period.

The company points out that the last time the games market hit a high, there was a bust cycle that followed. With the rise of digital, the sector has certainly stabilised and made back catalogues more accessible. This has reduced the reliance of the games market on hits, but this is of course still a focus.

Digi Capital reports that there has been a sizeable chunk of investment into the PC and console spaces, as well as the MMO/MOBA sector. The firm says this has been driven, largely, by Tencent.

It's not all good news, however, with the IPO market dipping 90 per cent, making just $1.1bn this year compared to 2017's $17.1bn.

Certainly, in the UK we've seen a number of companies going public. Sumo Digital, Codemasters and Team17 have all floated in the last twelve months with digital retailer Green Man Gaming set to follow. That latter IPO has fallen through due to unspecified reasons.

Come find out about the future of the PC games market at PC Connects London 2019. Tickets are available to buy right here. One ticket gives you access to not just this event, but also Pocket Gamer Connects and Blockchain Gamer Connects. 

PCGamesInsider Contributing Editor

Alex Calvin is a freelance journalist who writes about the business of games. He started out at UK trade paper MCV in 2013 and left as deputy editor over three years later. In June 2017, he joined Steel Media as the editor for new site In October 2019 he left this full-time position at the company but still contributes to the site on a daily basis. He has also written for, VGC, Games London, The Observer/Guardian and Esquire UK.