2020 was a banner year for games, and 2021 shows no sign of slowing down. New players, platforms, and paradigms born out of Covid-19 are here to stay, as the gaming market approaches $200B. M&A activity was up 373% over 2019, and is on pace for $48B in 2021. Public markets are also thriving – new entrants Unity and AppLovin are trading at ~20x revenues, and public esports valuations are up ~100% in the last year.The industry continues to evolve, as the major "walled gardens" (Apple, Google, Microsoft, etc.) finally start to reduce platform fees below the standard 30%. All the while, each of these large players are experimenting with game subscriptions, offering consumers more bang for their buck, as opposed to the nickel-and-dime approach of in-app purchases. Cross-play functionality is the driving force behind today's top properties like Fortnite and Roblox, and we expect to see a multitude of cross-play titles launch in the near future. The creator economy is booming, as game companies build the "Metaverse" – the next iteration of the internet. Hypercasual games have flourished, representing one-third of mobile game downloads in Q1'21. Finally, blockchain technologies are providing the much needed infrastructure for in-game virtual items and NFTs. We can't wait to see what's in store for the coming years – will you join us for the ride?
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