Why disruption, innovation, and creativity still lead the way in gaming

Lately, the dominant narrative in the gaming industry has been one of uncertainty and stagnation. Top-line growth has stalled, layoffs in the sector continue to rise, and a comprehensive recent report from games analyst Matt Ball suggests a time of great economic difficulty. Yet as investors in early-stage game companies, we see this moment as one with immense potential for gaming startups. Here’s why. 

Slowing secular trends primarily affect incumbents, which open up massive opportunities for the disruptors and creators that we fund. Larger companies facing growth challenges tend to either consolidate or turn to successful venture-backed companies for new ideas. In other words, they seek to buy growth. Our focus on early-stage investments means that the size of the opportunity, on the one hand, and disruptive forces, on the other, are far more relevant than the overall growth rate.