Tim Merel's Blog
Tim Merel is Managing Director of AR/VR and games adviser (reports/tools, company network, strategy consulting, investment banking) Digi-Capital
America delivered more AR/VR/XR revenue than China last year, but Chinese growth in the next five years could see it dominate AR/VR long-term — and not by a small margin. China could take more than $1 of every $5 spent on AR/VR/XR globally by 2022.
In games deal making there’s Tencent and there’s everyone else. Tencent participated in >$4 of every $10 invested and >3/4 of all M&A value for games globally in the last 12 months. Plus Q1 saw total games market record >$2.1B investment and >$14.4B M&A.
Games software/hardware combined could deliver $165B to $170B in 2018, and $230B to $235B by 2022. Games software alone could take 3/4 of market revenue in 5 years, with hardware taking the rest (as detailed in Digi-Capital's new Games Report Q1 2018).
AR/VR investment records were broken last year as startups raised over $3 billion across 28 AR/VR categories (over $1.5 billion in Q4 2017). Plus Magic Leap revealed its product and took less than a fifth of all investment. Who knew that could happen?
Games software/hardware combined could drive >$150B for the first time in 2017, with software taking around 3/4 and hardware around 1/4 (Note: this is games software/hardware combined – non-hardware revenues could deliver >$110B globally this year)
The mobile AR platform war kicked off with Mark Zuckerberg’s “We’re making the camera the first augmented reality platform.” Now Apple’s launch of its ARkit for iOS as “the largest AR platform in the world” has taken the mobile AR war to the next level.
Tim Merel's Comments
[Blog - 08/18/2016 - 04:20]
@Brian Tsukerman Thanks for your ...
@Brian Tsukerman Thanks for your comment. As the hundreds of millions soon billions of dollars of revenue have made Pokemon Go 1 in the top grossing charts, the hundreds of millions of players who have taken it there seem to like it. With the greatest of respect, that success might ...
[Blog - 03/01/2016 - 03:36]
Thanks for the kind references, ...
Thanks for the kind references, but you are using old, out-of-date forecasts. So your quotes and charts from us and any copies of them are all out of date and do not reflect our current thinking. You can see our current forecasts at http://www.digi-capital.com/news/2016/01/augmentedvirtual-reality-revenue-forecast-revised-to-hit-120-billion-by-2020/ r n r nOur investment analysis ...
[Blog - 01/14/2016 - 07:44]
@Tadhg Kelly It 's all ...
@Tadhg Kelly It 's all about installed bases, use cases and unit economics. If you don 't think there will be a combined installed base for AR and VR everything from Cardboard up to Magic Leap in the low single digit hundreds of millions in 5 years time, then the ...
[Blog - 11/04/2015 - 08:58]
@Krzysztof Lewicki Thank you for ...
@Krzysztof Lewicki Thank you for your comment. Maybe you 're right theoretically, but we couldn 't see the pixels : r n r nYou can also see discussion about that sort of thing here http://www.theverge.com/2015/6/17/8794907/oculus-rift-touch-virtual-reality-hands-on-e3-2015
[Blog - 10/19/2015 - 05:58]
@Ramin Shokrizade Thank you for ...
@Ramin Shokrizade Thank you for your question. r n r nYou can see the fundamentals driving what is happening here: r n r nhttp://www.digi-capital.com/news/2015/05/games-leaders-to-dominate-45-billion-mobile-games-revenue-forecast-by-2018/ .ViaOlX6rQgt r n r nand here: r n r nhttp://www.digi-capital.com/news/2015/05/games-leaders-to-dominate-45-billion-mobile-games-revenue-forecast-by-2018/ .ViaOlX6rQgt r n r nHope that helps
[Blog - 06/26/2015 - 08:17]
@Jesse Schell It 's rare ...
@Jesse Schell It 's rare to see such a clearly thought through approach to the practical realities of VR design. This should be required reading for all VR designers, from novice to expert. Great