Why is the turmoil, innovation and creativity still leads the way in games

Recently, the dominant narration in the game industry was one of the uncertainty and stagnation. The upper growth of the line stopped, and workers in this sector continued to rise, and a comprehensive recent report from the game analyst Matt Paul indicates a time of great economic difficulty. However, as investors in gaming companies at an early stage, we see this moment as a tremendous possibility for startups. This is the reason.

The slowdown in secular trends affects the occupants of jobs, which open huge opportunities for the disturbances and creators we finance. The largest companies facing growth challenges tend to standardize or turn into projects -backed companies to obtain new ideas. In other words, they seek to buy growth. Our focus on investments in the early stage means that the opportunity, on the one hand, and sabotage forces, on the other hand, are much more related than the total growth rate.

Our reading of the data indicates that although the growth of games revenue is slowly slowed, the total number of players is still growing; It is only that today’s players consume content differently. They choose more free play games, spend less for each player on average, and spread across geographical areas and wider cultures. For example, daily active users of Roblox multiplied between 2021 and 2024, and the monthly active users in Steam grew more than 40 % at the same time. It should be noted that all this came from China – MAUS has grown in STEAM by 25 % in the same period. This opportunity is signs.

Also, rapid developments in artificial intelligence and relevant techniques make much cheaper for new expatriates get foothold. It also promises to present new types of play that has not been previously imagined. Although the game market is still dominated by large titles, the cost barrier for smaller players is eroding quickly. At the same time, with the incorporation of the industry into fewer games and large platforms, the chances of independent games that serve smaller but passionate societies appear. We see pockets of opportunities in many parts of the industry, especially the following:

1. The growing platforms of the new IP titleExpanding social and digital platforms such as Fortnite provides fertile ground for a new intellectual property. We are looking for new and growing platforms that benefit from a complete ecosystem. Enter Switch 2 and a new batch of Grand Theft Auto The concession will create new growth areas.

2. Technology shiftThe development of the game is progressing and changes at a more pace with the technology sector than the entertainment industry. We expect progress in artificial intelligence to apply for development costs, increase the rate of repetition, and increase user experiences and new types. We believe that job occupants will find it difficult to respond – which indicates that they will have to buy the experience they need instead of building the experience they need.

3. The increased ecosystemGames continue to develop beyond independent experiences into broader social environmental systems. This transformation merges broader aspects of digital consumption, including fashion, sports, films, communications and e -commerce. With the continued expansion of our digital life, all of these areas are increasingly converging within and inside video games. Determining the size of the games market in fixed terms lacks the dynamic possibility of total growth.

4. New definitions of new scale and studios: Although we believe that IP and current societies are decisive dispecmes will become stronger, many AAA developers, especially those that cost them merely Hundreds of millions of dollars are at risk of being “stuck in the center”, which means that it is not large enough to attack users on a large scale, however expensive to meet the needs of specialized societies in a profitable way. We believe this creates a chance for new, very creative, smart and effective models to develop the game. These studios are very innovative, Amnesty International, and often based on low -cost geographical areas.

In Tirta, the broader trends decline neither inhibit nor our long -term approach nor our appetite for investment. We look beyond short -term growth rates and focus on the transformational capabilities of innovation. We are still enthusiastic about the future and confidence in our strategic priorities.