The videogame publishing industry continues to attract venture capital. Virtual World Management recently reported that nearly $500 million has been paid by venture funds to videogame publishers through the end of the 3rd quarter in 2008. Here's where some of the money has been invested:
- Trion — for development of an MMOG (massively multiplayer online game)
- Multiple firms received funding for development of virtual worlds that will target younger consumers, especially teens
- Multiple firm received funding for development of alternative payment systems (non-credit card) for online game players
Virtual World Management also noted that companies with virtual world platforms have begun selling out to social networking companies.
Keep in mind that videogame publishers, operating in the software development sector, spend an average of 5.5% of revenues on marketing. These data points: high marketing rates, new venture capital investment, and mergers and acquisition activity all point to increased opportunity for agencies to secure new clients.[Source: Virtual World Management release, 10.15.2008]