Mobile gaming is a $68.5 billion global business, and investors are buying in – gpgmail


By the end of 2019, the global gaming market is estimated to be worth $152 billion with 45% of that, $68.5 billion, coming directly from mobile games. With this tremendous growth (10.2% YoY to be precise) has come a flurry of investments and acquisitions, everyone wanting a cut of the pie. In fact, over the last 18 months, the global gaming industry has seen $9.6 billion in investments and if investments continue at this current pace, the amount of investment generated in 2018-19 will be higher than the 8 previous years combined.

What’s interesting is why everyone is talking about games and who in the market is responding to this and how.

The gaming phenomenon 

Today, mobile games account for 33% of all app downloads, 74% of consumer spend, and 10% of all time spent in-app. It’s predicted that in 2019, 2.4 billion people will play mobile games around the world – that’s almost one third of the global population. In fact, 50% of mobile app users play games, making this app category as popular as music apps like Spotify and Apple Music and second only to social media and communications apps in terms of time spent.

In the US, time spent on mobile devices has also officially outpaced that of television – with users spending 8 more minutes per day on their mobile devices. By 2021, this number is predicted to increase to over 30 minutes. Apps are the new primetime and games have grabbed the lion’s share.

Accessibility is the highest it’s ever been as barriers to entry are virtually non-existent. From casual games to the recent rise of the wildly popular hyper-casual genre of games which are quick to download, easy to play, and lend themselves to being played in short sessions throughout the day, games are played by almost every demographic stratum of society. Today, the average age of a mobile gamer is 36.3 (compared with 27.7 in 2014), the gender split is 51% female, 49% male, and one-third of all gamers are between the ages of 36-50. A far cry from the traditional stereotype of a ‘gamer’.

With these demographic, geographic, and consumption sea-changes in the mobile ecosystem and entertainment landscape, it’s no surprise that the game space is getting increased attention and investment, not just from within the industry, but more recently from traditional financial markets and even governments. Let’s look at how the markets have responded to the rise of gaming.

Image courtesy of David Maung/Bloomberg via Getty Images

Games on Games 

The first substantial investments in mobile gaming came from those who already had a stake in the industry. Tencent invested $90M in Pocket Gems and$126M in Glu Mobile (for a 14.6% stake), gaming powerhouse Supercell invested $5M in mobile game studio Redemption Games, Boom Fantasy raised $2M from ESPN and the MLB and Gamelynx raised $1.2M from several investors – one of which was Riot Games. Most recently, Ubisoft acquired a 70% stake in Green Panda Games to bolster its foot in the hyper-casual gaming market.

Additionally, bigger gaming studios began to acquire smaller ones. Zynga bought Gram Games, Ubisoft acquired Ketchapp, Niantic purchased Seismic Games, and Tencent bought Supercell (as well as a 40% stake in Epic Games). And the list goes on.

Wall Street wakes up

Beyond the flurry of investments and acquisitions from within the game industry, games are also generating huge amounts of revenue. Since launch, Pokemon Go has generated $2.3B in revenue and Fortnite has amassed some 250M players. This is catching the attention of more traditional financial institutions, like private equity firms and VCs, who are now looking at a variety of investment options in gaming – not just of gaming studios, but all those who had a stake in or support the industry.

In May 2018, hyper-casual mobile gaming studio Voodoo announced a $200M investment from Goldman Sachs’ private equity investment arm. For the first time ever, a mobile gaming studio attracted the attention of a venerable old financial institution. The explosion of the hyper-casual genre and the scale its titles are capable of achieving, together with the intensely iterative, data-driven business model afforded by the low production costs of games like this, were catching the attention of investors outside of the gaming world, looking for the next big growth opportunity.

The trend continued. In July 2018, private equity firm KKR bought a $400M minority stake in AppLovin and now, exactly one year later Blackstone announced their plan to acquire mobile ad-network Vungle for a reported $750M. Not only is money going into gaming studios, but investments are being made into companies whose technology supports the mobile gaming space. Traditional investors are finally taking notice of the mobile gaming ecosystem as a whole and the explosive growth it has produced in recent years. This year alone mobile games are expected to generate $55B in revenue so this new wave of investment interest should really come as no surprise.

A woman holds up her cell phone as she plays the Pokemon Go game in Lafayette Park in front of the White House in Washington, DC, July 12, 2016. (Photo: JIM WATSON/AFP/Getty Images)

Government intervention

Most recently, governments are realizing the potential and reach of the gaming industry and making their own investment moves. We’re seeing governments establish funds that support local gaming businesses – providing incentives for gaming studios to develop and retain their creatives, technology, and employees locally – as well as programs that aim to attract foreign talent.

As uncertainty looms in England surrounding Brexit, France has jumped on the opportunity with “Join the Game”. They’re painting France as an international hub that is already home to many successful gaming studios, and they’re offering tax breaks and plenty of funding options – for everything from R&D to the production of community events. Their website even has an entire page dedicated to “getting settled in France”, in English, with a step-by-step guide on how game developers should prepare for their arrival.

The UK Department for International Trade used this year’s Game Developers Conference as a backdrop for the promotion of their games fund – calling the UK “one of the most flourishing game developing ecosystems in the world.” The UK Games Fund allows for both local and foreign-owned gaming companies with a presence in the UK to apply for tax breaks. And ever since France announced their fund, more and more people have begun encouraging the British government to expand their program saying that the UK gaming ecosystem should be “retained and enhanced”. But, not only does the government take gaming seriously, the Queen does as well. In 2008, David Darling the CEO of hyper-casual game studio Kwalee was made a Commander of the Order of the British Empire (CBE) for his services to the games industry. CBE is the third-highest honor the Queen can bestow on a British citizen.

Over to Germany, and the government has allocated 50M euros of its 2019 budget for the creation of a games fund. In Sweden, the Sweden Game Arena is a public-private partnership that helps students develop games using government-funded offices and equipment. It also links students and startups with established companies and investors. While these numbers dwarf the investment of more commercial or financial players, the sudden uptick in interest governments are paying to the game space indicate just how exciting and lucrative gaming has become.

Support is coming from all levels

The evolution of investment in the gaming space is indicative of the stratospheric growth, massive revenue, strong user engagement, and extensive demographic and geographic reach of mobile gaming. With the global games industry projected to be worth a quarter of a trillion dollars by 2023, it comes as no surprise that the diverse players globally have finally realized its true potential and have embraced the gaming ecosystem as a whole.


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MIT built a better way to deliver high-quality video streams to multiple devices at once – gpgmail


Image via Getty Images / aurielaki

Depending on your connection and the size of your household, video streaming can get downright post-apocalyptic – bandwidth is the key resource, and everyone is fighting to get the most and avoid a nasty, pixelated picture. But a new way to control how bandwidth is distributed across multiple, simultaneous streams could mean peace across the land – even when a ton of devices are sharing the same connection and all streaming video at the same time.

Researchers at MIT’s Computer Science and Artificial Intelligence Lab created a system they call ‘Minerva’ that minimizes stutters due to buffering, and pixelation due to downgraded stream, which it believes could have huge potential benefits for streaming services like Netflix and Hulu that increasingly serve multiple members of a household at once. The underlying technology could be applied to larger areas, too, extending beyond the houseful and into neighbourhoods or even whole regions to mitigate the effects of less than idea streaming conditions.

Minerva works by taking into account the varying needs of different delivery devices streaming on a network – so it doesn’t treat a 4K Apple TV the same as an older smartphone with a display that can’t even show full HD output, for instance. It also considers the nature of the content, , which is important because live action sports require a heck of a lot more bandwidth to display in high quality when compared to say, an animated children’s TV show.

Video is then served to viewers based on its actual needs, instead of just being allocated more or less evenly across devices, and the Minerva system continually optimizes delivery speeds in accordance with their changing needs as the stream continues.

In real-world testing, Minerva as able to provide a quality cup equivalent to going from 720p to 1080p as much as a third of the time, and eliminated the need for rebuffing by almost 50 percent, which is a massive improvement when it comes to actually being able to seamlessly stream video content continuously. Plus, it can do all this without requiring any fundamental changes to network infrastructure, meaning a streaming provider could roll it out without having to require any changes on the part of users.


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Week in Review: Regulation boogaloo – gpgmail


Hello, weekenders. This is Week-in-Review, where I give a heavy amount of analysis and/or rambling thoughts on one story while scouring the rest of the hundreds of stories that emerged on gpgmail this week to surface my favorites for your reading pleasure.

Last week, I talked about how services like Instagram had moved beyond letting their algorithms take over the curation process as they tested minimizing key user metrics such as “like” counts on the platform.


John Taggart/Bloomberg via Getty Images

The big story

The big news stories this week intimately involved the government poking its head into the tech industry. What was clear between the two biggest stories, the DoJ approving the Sprint/T -Mobile merger and the FTC giving Facebook a $5 billion slap on the wrist, is that big tech has little to worry about its inertia being contained.

It seems the argument from Spring and T-Mobile that it was better to have three big telecom companies in the U.S. rather than two contenders and two pretenders, seems to have stuck. Similarly, Facebook seems to have done a worthy job of indicating that it will handle the complicated privacy stuff but that they’ll let the government orgs see what they’re up to.

Fundamentally, none of these orgs seem to want to harm the growth of these American tech companies and I have a tough time believing that perspective is going to magically get more toothy in some of these early antitrust investigations. The government might be making a more concerted effort to understand how these businesses are structured, but even focusing solely on something like the cloud businesses of Microsoft, Google and Amazon, I have little doubt that the government is going to spend an awfully long time in the observation phase.

The danger is erraticism and for that the worst government fear for tech isn’t a three-letter agency, it’s the Twitter ramblings of POTUS.

Onto the rest of the week’s news.

Intel and Apple logos

(Photo: ALASTAIR PIKE,THOMAS SAMSON/AFP/Getty Images)

Trends of the week

Here are a few big news items from big companies, with green links to all the sweet, sweet added context:

  • Apple dropping $1 billion on Intel’s modem business
    Apple is snapping up a missing link in its in-house component production with the $1B purchase of most of Intel’s modem business. This follows a dramatic saga between Intel, Qualcomm and Apple over the past year, but Apple will be making its own smartphone modems the question is when they actually end up in new iPhones. Read more here.
  • Microsoft dropping $1 billion on OpenAI
    Microsoft announced this week that it is dumping $1 billion into Sam Altman’s OpenAI research group. The partnership is pretty major, but it’s just one of the interesting avenues Microsoft is using to ensure its Azure services gain notable customers. Read more here.
  • Galaxy Fold is coming back!
    After a very embarrassing soft launch, Samsung which managed to make it a several devices beyond the Note 7 before another garbage fire is trying its hand at the Galaxy Fold again and will be releasing it sometime in September. It seems like the carriers are a little dubious of the prospect and T-Mobile has already opted out of carrying it. Read more here.

darkened facebook logo

GAFA Gaffes [Facebook Edition!!]

How did the top tech companies screw up this week? This clearly needs its own section, in order of badness:

  1. Facebook gets five:
    [Facebook settles with FTC: $5 billion and new privacy guarantees]
  2. FTC isn’t quite done with Facebook:
    [Facebook says it’s under antitrust investigation by the FTC]
  3. Facebook dismissed CA warnings:
    [Facebook ignored staff warnings about sketchy Cambridge Analytica in September 2015]
  4. Facebook left kids vulnerable:
    [Facebook fails to keep Messenger Kids safety promise]

Extra Crunch

Our premium subscription service had another week of interesting deep dives. This week, my colleague Danny spoke with some top VCs about why fintech startups have been raising massive amounts of cash and he seemed to walk away with some interesting impressions.

“…The biggest challenge that has faced fintech companies for years — really, the industry’s consistent Achilles’ heel — is the cost of acquiring a customer. Financial customer relationships are incredibly valuable, and the cost of acquiring a user for any product is among the most expensive in every major channel.

And those costs are going up…”

Here are some of our other top reads for premium subscribers.

We’re excited to announce The Station, a new gpgmail newsletter all about mobility. Each week, in addition to curating the biggest transportation news, Kirsten Korosec will provide analysis, original reporting and insider tips. Sign up here to get The Station in your inbox beginning in August.


10 minutes mail – Also known by names like : 10minemail, 10minutemail, 10mins email, mail 10 minutes, 10 minute e-mail, 10min mail, 10minute email or 10 minute temporary email. 10 minute email address is a disposable temporary email that self-destructed after a 10 minutes. https://tempemail.co/– is most advanced throwaway email service that helps you avoid spam and stay safe. Try tempemail and you can view content, post comments or download something