In rapid transformation, the video game sector is attracting investors
Considered to be a risky sector until recently, the video game sector is transforming and attracting more and more investors. While the sector is still composed of small actors who are counting on the success of their games with the public, some with more depth are creating impressive operations and new actors are emerging.
Most of the companies in this sector are having difficulty finding financing and have to finance themselves. Some game developers are attracting investment funds that are less risk-averse and are going public to self-publish and gain independence.
The developer Dontnod, which listed on the Euronext Growth exchange on May 23, has seen its capital increase by €30.5 million since mid-June. At the end of May, the studio and publisher Voodoo raised a record $200 million (€172 million) from West Street Capital Partners VII, an investment fund managed by Goldman Sachs. Oh BiBi followed at the end of June, raising $21 million from the British investment fund Atomico. These funds will allow it to expand in the approximately $9 billion shooting game market, and compete with Fortnite, which has exceeded $2 million per day in revenue since July 13.
Companies in the sector can also obtain liquidity via the Institute for Cinema and Cultural Institution Financing (IFCIC), established to facilitate access to bank loans, and can benefit from a video game tax credit which was increased in 2017. This assistance will limit risks, making the sector more attractive for investors and increasing their competitiveness vis-à-vis the United States and Canada.
The video game market is based on creativity, so it is changing constantly and therefore remains very active.