Gaming Sector: New Categories Take Center Stage

Following the Electronic Entertainment Expo (“E3”) in June, the recent IPO of Candy Crush maker King Digital Entertainment, Amazon’s $1 billion acquisition of the video game streaming service Twitch, and the near-term broad commercial release of virtual reality gaming, Digital Capital Advisors (“DCA”) decided it was time to revisit our inaugural gaming whitepaper Gaming Sector: Trends and Predictions, published in October 2012.  DCA set out to expand our analysis of the gaming industry as it continues to solidify itself as the global mainstream medium for entertainment content, explore new disruptive technologies and monetization methods driving the evolution of gaming and spotlight the continuing global explosion of eSports. The culmination of our research and discussions with industry leaders uncovered an industry on the verge of an imminent paradigm shift, as advancements in cloud computing, hardware consolidation and broadband capabilities quickly converge. Legacy gaming giants and new technology entrants are currently building out their arsenal for what we believe will be a rapid redistribution of market share, as gaming migrates to a ubiquitous software-based and screen independent experience.