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

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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 eight 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 U.S., time spent on mobile devices has also officially outpaced that of television — with users spending eight more minutes per day on their mobile devices. By 2021, this number is predicted to increase to more than 30 minutes. Apps are the new prime time, 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 that 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 $90 million in Pocket Gems and$126 million in Glu Mobile (for a 14.6% stake), gaming powerhouse Supercell invested $5 million in mobile game studio Redemption Games, Boom Fantasy raised $2M million from ESPN and the MLB and Gamelynx raised $1.2 million 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, Pokémon GO has generated $2.3 billion in revenue and Fortnite has amassed some 250 million players. This is catching the attention of more traditional financial institutions, like private equity firms and VCs, which are now looking at a variety of investment options in gaming — not just of gaming studios, but all those who have a stake in or support the industry.

In May 2018, hyper-casual mobile gaming studio Voodoo announced a $200 million 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 $400 million minority stake in AppLovin and now, exactly one year later, Blackstone announced their plan to acquire mobile ad-network Vungle for a reported $750 million. 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 $55 billion 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 U.K. Department for International Trade used this year’s Game Developers Conference as a backdrop for the promotion of their games fund — calling the U.K. “one of the most flourishing game developing ecosystems in the world.” The U.K. Games Fund allows for both local and foreign-owned gaming companies with a presence in the U.K. 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 U.K. 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 in Germany, and the government has allocated €50 million 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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Arcade1Up pinball cabinet review: Fine for families, interesting for modders

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Enlarge / Say hello to the Arcade1Up Attack From Mars physical pinball cabinet. The chassis is physical; its games are all virtual. Read below to understand what the heck that means.

Sam Machkovech

If you’re of a certain generation, chances are you have imagined (or, at this point in your adulthood, built) your own home arcade that resembles something out of the golden ’80s era. One useful path to making this a reality, especially in tighter quarters, is the “multicade,” an invention that squishes multiple games into a single cabinet.

But what if your old-school gaming dreams revolve around something bigger and bulkier, particularly pinball? Until recently, your options were either buying a bunch of original pinball cabinets or building your own ground-up emulation solution. And the latter is complicated by the realities of how pinball plays and feels.

I’ve wondered how long it would take for that to change in the gaming-nostalgia market, especially as companies like Arcade1Up produce and sell more multicade cabinets for home use. The time for change is now, evidently, thanks to a handful of manufacturers producing pinball multicades. Arcade1Up in particular launched three distinct pinball emulation cabinets this year, each revolving around a different license.

Thanks to Arcade1Up, I’ve gone hands-on with arguably the most interesting product in its 2021 pinball line: a collection of 10 classic tables, all created by Williams during its arcade heyday but emulated for more convenient home play. What exactly does $600 get you in terms of emulation and build quality?

Time to get Mad and Medieval

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Game Boy Advance game gets split-screen multiplayer through new FPGA core

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Developer Robert Peip shows off some split-screen Game Boy Advance multiplayer gaming through his new FPGA core.

Here at Ars, we’re big fans of situations where emulation creates a classic gaming experience that’s actually better than what you could get with original hardware in some way or another. In the past, that has meant upsampling rotated sprites in SNES’ “Mode 7” games or adding “widescreen” support to NES games or mitigating the controller lag that was built into certain older consoles or overclocking an emulated SNES to remove slowdown without ruining gameplay timing.

The latest emulation-powered retro-gaming upgrade to cross our paths greatly simplifies an oft-overlooked capability built in to many Game Boy Advance titles. Namely, it adds the ability to play multiplayer titles in split screen on a single display.

This upgrade is the work of Robert Peip, a developer who’s spent years working on field-programmable gate arrays (FPGAs). These days, Peip works primarily on the MiSTer FPGA an open source project that recreates classic gaming hardware extremely accurately through emulation “cores” that replicate every single logic gate involved in the schematics of the original system (most of Analogue’s high-end retro hardware is similarly powered by FPGA cores). Such cores are currently available for consoles ranging from the Odyssey 2 through the Neo Geo era and more.

Peip’s new “special version” of the Game Boy Advance FPGA core works relatively simply, running two GBA cores in a single MiSTer. As Peip explains, “you get 2 raw GBA cores, one connected to SDRAM, one connected to DDR3, communicating directly inside the FPGA. Sound is used from Core 1 only.”

Thus, games originally designed to be played on two consoles connected via link cable can now be played in split screen on a single MiSTer with a single connected display, as shown in this demonstration video. Peip says that “most multiplayer games should be supported,” a statement that presumably includes original Game Boy games (which work on a GBA link-cable through a supported secondary mode).

Playing these multiplayer GBA games on original hardware required two separate consoles, two copies of the game, and a GBA link cable, ensuring most casual players probably never even bothered (some GBA games offered limited multiplayer with just one cartridge). And while previous GBA emulators have offered link-cable support, even that required a LAN or Internet connection between two separate machines with two separate displays. While some RetroPie users have done a bit of finagling to get multiplayer games for the original Game Boy working via split screen, we’ve never seen a similar one-machine, one-display solution for Game Boy Advance multiplayer games before this.

Peip’s turnkey test core for multiplayer GBA emulation is currently only available by supporting his Patreon, and it is currently missing features like savestates, fast forward, and visual filters available on other GBA cores. Still, we’re excited to have a new, easier-to-use method to try the oft-ignored multiplayer modes in some classic portable titles. Now if we could only get split-screen support for those four-player GBA titles…

Listing image by Nintendo

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Peter Jackson’s 6-hour Beatles documentary confirmed for Disney+ this November

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Peter Jackson’s next six-hour epic is finally coming out this year—and in a first for the acclaimed director, the film will launch directly to a streaming service. It will also be broken up into episodes.

The Beatles: Get Back, an expansive documentary originally announced for a theatrical run this August, has had its release strategy tweaked. On Thursday, Jackson and Disney confirmed that the entire project will launch exclusively on Disney+ during this year’s American Thanksgiving holiday. Each third of the documentary will launch on the streaming service on November 25, 26, and 27. As of press time, Disney hasn’t said how the film will reach audiences outside of Disney+’s supported territories. Neither Jackson nor Disney clarified how the original theatrical run might have worked or whether the global pandemic forced anyone’s hand.

Today’s news confirms that Jackson had an abundance of footage to work with. Roughly three years ago, the remaining Beatles handed him access to a musical holy grail: over 60 hours of previously unseen video recordings, mostly capturing the Beatles working on the album Let It Be and rehearsing for, and then performing, the band’s legendary 1969 rooftop concert in London.

Jackson stitched the footage together with access to what Disney calls “over 150 hours of unheard, restored audio”—meaning yes, somehow Apple Corps. still has some tapes in hiding after this many Beatles special edition albums, anthologies, video games, and Cirque du Soleil collaborations. For further context on the Let It Be recording sessions, the film will be paired with a physical book full of photos and original interviews, now delayed to an October launch.

Jackson’s comments in today’s news, as provided by Disney to members of the press, imply that he indeed sought to release a long documentary: “I’m very grateful to the Beatles, Apple Corps., and Disney for allowing me to present this story in exactly the way it should be told.” He also commented on the original documentary footage, filmed by Michael Lindsay-Hogg, as something that is “not nostalgia—it’s raw, honest, and human.”

The Beatles: Get Back will launch on a Thursday, thus breaking Disney+’s latest initiative of launching new series episodes on Wednesdays instead of Fridays. If anyone can break a newly sacrosanct Disney+ rule, it has to be the Beatles.

Listing image by The Walt Disney Company / Apple Corps / Wingnut Films

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