Investors in mobile games have a hangover,” venture capitalist Rick Thompson, who earned about $5 billion from subsidizing and selling gaming startups, said at the GamesBeat 2014 conference.


Zynga’s business model has been ordered to live for a long time, it does not work, and people and the entire market are distrustful of it today,” Thompson said. 

He meant that Pinkus’s company, as well as King, are based on the success of one or two hits. Both teams failed to repeat the success. Therefore, more and more venture funds are starting to be wary of gaming IPOs, which ultimately leads to fewer investments. 

But, according to Thomson, this applies only to the Western gaming market. They say the Chinese have already figured out how to “get money all the time.”  According to him, their investors will never lose faith. And the thing is that, unlike Western companies that are too focused on analytics today, Asian companies “focused on what is really important.” Namely: engagement and fan.  

Interestingly, Kixeye CEO Will Harbin said about the same thing. 

Source: http://venturebeat.comPhoto: