Venture capital investments in U.S. video game efforts dropped by more than $60 million from 2008 to 2009, of particular concern to developers in strong but outlying areas such as Boston.
The Boston Globe reported today on the beatdown dealt to game development reliant on venture capital. In 2008, 35 projects were funded at a total investment of $214 million nationwide. In 2009, just 25 companies, to the tune of $153.7 million.
Naturally the worsening economy is a factor, as VC firms shift to a more conservative posture. One partner at an investment firm told the Globe that thereās probably ātoo muchā capital available for game developers.
Boston, home to Irrational Games, Harmonix, and startups like Curt Schillingās 38 Studios and Quick Hit Inc., is more inclined to feel the pinch because culturally, investors there arenāt as familiar with the value in video game development as they might be on the U.S. West Coast, said Quick Hitās Jeff Anderson, formerly the CEO of Turbine, which also is Boston-based.
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The Globe says the slowdown has shifted investorsā attention toward those providing casual games over Facebook, and to companies that provide components and services of value to established players in the games industry.
Investors Bet Less On Video Games [The Boston Globe]
