Disney/Epic Partnership will be Major Industry Growth Driver

Disney/Epic Partnership will be Major Industry Growth Driver

On February 7, The Walt Disney Company announced they were investing $1.5 billion in Epic Games as part of a multiyear project to create open games and an entertainment universe.  DFC expects this to be a core driver of one of the biggest new growth areas for the video game industry. Overview The $1.5 billion investment from Disney is the latest in a long line of companies investing in Epic.  China giant Tencent owns a 40% stake in Epic from a 20.....
Cloud Games Drive Industry Growth

Cloud Games Drive Industry Growth

DFC Intelligence believes that game streaming and cloud delivery will be one of the most important growth drivers for video games over the next several years. Streaming will enhance high-end client games and offer new ways for titles to expand over time and generate revenue on an ongoing basis.  In addition, cloud delivery is actually expected to increase hardware sales.  Overall DFC estimates that worldwide revenue from cloud games will reach $27 billion by 2027.  .....
2023 Sees the Video Game Industry in Transition

2023 Sees the Video Game Industry in Transition

So far 2023 has been a stagnant year for the video game industry.  DFC Intelligence forecasts that worldwide revenue for PC and console games will remain flat for the year at $74 billion.  However, from a strategic perspective the industry is undergoing a remarkable business model transition. As large publishers focus on live services there is growing potential for smaller publishers and developers. Living Games Redefine Launch Strategies Heading in.....

Microsoft Activision Blizzard Ushers in New Era for Game Industry

The completion of the Microsoft acquisition of Activision Blizzard launches a new era for the video game industry.   After years of struggle Microsoft has bought itself a position as a leading industry force.  The overall impact will be huge but remains uncertain.  However, we can start sketching out the major players and how this battle for market control is likely to play out. Microsoft is Now Largest Video Game Publisher In recen.....
Gaming Giants: Amazon Expands Video Game Publishing

Gaming Giants: Amazon Expands Video Game Publishing

Overview As the video game industry has become a key driver of consumer leisure expenditures, many leading media enterprises are actively entering the space.  Microsoft’s pending acquisition of Activision Blizzard is one of the largest media deals ever. Of course, Microsoft has been a major player in video games for years.  The fact that Microsoft is taking the acquisition route after years of struggling in the console game business shows 1.....
Driving the Future of Advertising in the Metaverse

Driving the Future of Advertising in the Metaverse

An Interview with Moonrock Labs In recent years the concept of the metaverse has exploded in popular imagination.  Much of this has been hype focused on a future world where everyone is wearing a virtual reality headset. The reality is the metaverse has been an evolving concept for years.  DFC Intelligence has published several reports looking at the history of the metaverse in video.....
Game Subscription Services in the Metaverse Era

Game Subscription Services in the Metaverse Era

After a protracted government approval process the Microsoft acquisition of Activision Blizzard looks like it should go through by the end of the year.  This will place Microsoft in possession of some of the most most successful IP in the video game industry heading into 2024.  However, while Activision content helps Xbox become more competitive with Sony, it does not give Microsoft a significant long-term advantage given evolving industry trends.  Video games are heading towards a single .....
Microsoft Video Game Results Remain Disappointing

Microsoft Video Game Results Remain Disappointing

For its fourth fiscal quarter ending 6/30/2023, Microsoft reported gaming revenue was up 1% year-over-year.  Xbox content and services grew 5% while Xbox hardware declined 13%. Analysis Microsoft’s video game performance continues to significantly underperform the industry.  The poor sales for Xbox hardware is in stark contrast to record sales for Sony’s PlayStation 5. .....