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More Consolidation to Come in Social Gaming August 17, 2010

Posted by jeremyliew in M&A, social gaming.
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These are interesting times in the social gaming industry. Two weeks ago Disney acquired Playdom, and last week Google acquired Slide. Just like that, two of the largest social game publishers have become part of larger companies. This activity all comes on the heels of EA’s acquisition of Playfish late last year.

Social gaming, as a category, has grown incredibly quickly, becoming one of the dominant drivers of usage on FacebookFacebook, and an increasingly core component of people’s entertainment. This growth represents a real threat to other forms of entertainment, and has precipitated the three deals that we have seen so far.

Read the rest of this post at Mashable

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1. Tweets that mention More Consolidation to Come in Social Gaming « Lightspeed Venture Partners Blog -- Topsy.com - August 17, 2010

[…] This post was mentioned on Twitter by Alltop VC, Kashif Shaikh. Kashif Shaikh said: LightspeedVentures: More Consolidation to Come in Social Gaming: These are interesting times in the social gaming … http://bit.ly/dzJRuv […]

2. Robert Brackenridge - August 20, 2010

Anyone with kids these days (who are enabled by online technologies) can easily testify to the shifting entertainment horizon. Will the shift be more prolific in certain demos permanently more than others, or will it simply be another example of an adoption curve?

Social takes on entirely different meanings for each age group. It will be interesting to see how social behaviors will affect the ultimate saturation point and how tiring of these social behaviors will factor into saturation.

Likewise, will future acquisitions reflect complementary social strategies and growth in complimentary markets? It will be challenging to continue to find such acquisitions, and I am not sure this growth model will be able to leverage the structural benefits. Expertise in one social strategy does not necessarily beget expertise in another.

3. Christian - August 23, 2010

Could imagine that the field of social gaming is a kind of new hype at the moment and in my eyes it is quite questionable if it will be sustainable. From my own experience, people tend to loose interest in new games very fast, and market entry barriers appear not to be very high for potential newcomers.

4. Adam T. - December 3, 2010

This post was spot on. Look at all the consolidation that has happened since – DeNA/ngmoco, Zynga/Newtoy. If there’s only going to be one winner in this space, these rapid acquisitions will surely help


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