Securing Investment in the Gaming Industry Amidst Economic Uncertainty

The gaming industry, once considered recession-proof, is facing a turbulent year. At GI Live London's investment and publishing panel, experts discussed how funding for game companies is changing in uncertain economic times. Harry Hamer, principal analyst at London Venture Partners, noted that the industry has evolved with the rise of free-to-play and premium gaming models, and investors must consider the long-term potential of a game. Curve Games' vice president of partnerships, Bobby Wertheim, emphasized the importance of investing in games that offer experiences that can grow over time, describing this approach as a marathon. However, Curran Games Agency founder Cassia Curran cautioned studios to be prepared for the possibility of a publisher going under, highlighting the need for careful planning and consideration of multiple scenarios. Square Enix Collective producer Lauren Hunter questioned the funding viability of studios established during the COVID-19 pandemic, suggesting that they may face difficulties in attracting investors due to the looming recession. The panelists also discussed the role of publishers in the industry, with Wertheim noting that publishers can provide valuable support, including marketing and resources, to help developers polish and release their games. Hunter emphasized that publishers can offer guidance on game development and help studios achieve their goals. The experts agreed that developers need to demonstrate a clear understanding of their game's potential and a well-thought-out plan to convince investors to support them. A prototype or demo is crucial in showcasing a game's potential, but the level of polish and complexity required can vary depending on the studio's experience. Ultimately, investors are looking for a compelling reason to invest, and developers must be able to articulate their vision and demonstrate their ability to execute it.