豪利漢洛基：2024年電子游戲市場動態研究報告（英文版）（32頁）.pdf

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1、Video Games Market UpdateGame On!Video Games Market UpdateSPRING 2024Executive Summary2Houlihan Lokeys Video Games Coverage TeamDaniel GosselsManaging DirectorCo-Head of Digital MediaDGosselsHL.comJohn LambrosManaging DirectorCo-Head of U.S.TechnologyJohn.LambrosHL.comMatt ShoreFinancial AnalystMatt

2、.ShoreHL.comJared ShaberVice PresidentJShaberHL.comKevin LangAssociateKevin.LangHL.comRahul AminFinancial AnalystRahul.AminHL.comDurgesh PanchaniVice PresidentDurgesh.PanchaniHL.comBrian MarlerDirectorBMarlerHL.comThe video game industry stabilized and returned to growth in 2023.-The industry return

3、ed to growth in 2023,driven by better console supply,a stronger new release lineup,growth in the subscription model,and live game services.-2023 saw many video game companies look inward,rationalize operations,reduce costs,and position themselves for profitable growth in 2024 onward.-Industry valuat

4、ions have moderated versus the frothy levels seen in 2021,creating an opportunity for investors and buyers to enter the market.We are bullish as the video game industry is resilient and will continue to evolve and reinvent itself,and gamers are still gaming(at record levels!).-Total video game playe

5、rs are on track to hit nearly four billion by 2026,as video games continue to show strength as the No.1 form of entertainment for younger generations.-A powerful shift in media consumption to video games across all age groups is expected to drive long-term sustainable growth globally.-New innovative

6、 revenue models are expected to drive user engagement and revenue over the coming years(i.e.,free-to-play(F2P),in-game advertising,and transmedia).We have seen a noticeable pick-up in M&A activity in recent months,following a slowdown in 2023.-Notable M&A includes Activision Blizzard(acquired by Mic

7、rosoft after clearing lengthy regulatory proceedings),Rovio(acquired by Sega Sammy),Scopely(acquired by Savvy Games),Jagex(acquired by CVC and Haveli),and Saber Interactive(acquired by private investor group).-While certain strategic buyers pulled back from M&A in 2023,there have been several notabl

8、e new market entrants,such as Savvy Games,Netflix,and Disney.-In 2024,we expect to see a growing number of financial sponsors investing in the video game space as well,as they take notice of compelling(private and public)market opportunities.-We believe there is a significant investment opportunity

9、in the Indie game market,a market that is highly fragmented and ripe for growth and consolidation.We are optimistic about the long-term outlook for the video game industry.-While the industry is facing some near-term challenges,we expect it will overcome these challenges by super-servicing gamers ar

10、ound the world with exceptional and highly engaging content across multiple platforms via innovative business models.-We believe that strong pent-up demand on both the sellside and buyside will provide a catalyst for greater investment and M&A activity in 2024.Houlihan Lokey Is the No.1 M&A Advisor3

11、LEADING M&A ADVISOR,DRIVEN BY INDUSTRY EXPERTISEFULLY INTEGRATED FINANCIAL SPONSOR COVERAGEFULLY INTEGRATED CAPITAL MARKETS COVERAGELargest dedicated alternative investor coverage team in the industry,with real-time insights to market-clearing terms and investor appetite.GLOBAL M&A CAPABILITIES BOLS

12、TERED BY LOCAL PRESENCE36 Offices in the Americas,Europe,and Asia89 Technology Deals in CY 2023180+Technology Bankers$25B+Capital Raised in the Past Two Years90+ProfessionalsSenior-LevelContact With All Major Credit Investors No.1M&A Advisor for All Global Transactions No.1M&A Advisor to Privately H

13、eld Mid-Cap Companies1,000+M&A Transactions Under$1 Billion in the Past Five Years29Senior officers dedicated to the sponsor community in North America and Europe.1,000+Sponsors covered,providing proprietary data and knowledge of buyer behavior.730+Companies sold to Financial Sponsors over the past

14、five years.11023643862278120192020202120222023Cumulative Volume of Transactions Sold to Financial Sponsors Since 20192023 M&A Advisory RankingsAll Global Technology TransactionsAdvisorDeals1Houlihan Lokey892Rothschild&Co763JP Morgan684Goldman Sachs&Co635Morgan Stanley59Source:Refinitiv.Excludes acco

15、unting firms and brokers.2023 M&A Advisory RankingsAll Global TransactionsAdvisorDeals1Houlihan Lokey3522Rothschild&Co3493Goldman Sachs&Co3004JP Morgan3005Morgan Stanley253Source:Refinitiv.Excludes accounting firms and brokers.Extensive History Advising Video Game Companies4Tombstones included herei

16、n represent transactions closed from 2008 forward.*Selected transactions were executed by Houlihan Lokey professionals while at other firms acquired by Houlihan Lokey or by professionals from a Houlihan Lokey joint venture company.(1)Viacoms digital gaming assets included Addicting Games,GameTrailer

17、s,and Shockwave.(1)has been acquired bya portfolio company ofFinancial Advisorhas merged its gaming assets and made an investment intoFinancial Advisor*has been acquired bySellside Advisor*has been acquired bySellside Advisor*majority shareholders has sold a controlling interest toSellside Advisor*h

18、as received investment fromFinancial Advisor*Preferred StockFinancial Advisor*has acquiredand video game business from AJIOKADue Diligence*has been acquired bySellside Advisorhas merged with Financial Advisor*has been acquired bySellside Advisor*has been acquired bySellside Advisor*has been acquired

19、 byStrategic Advisor*has been acquired bySellside Advisor*has been acquired bySellside Advisor*has been acquired bySellside Advisor*has been acquired bySellside Advisor*has acquiredfromFinancial Advisor*has been acquired bySellside Advisor*has received an investment fromSellside Advisor*has been acq

20、uired bySellside Advisor*$29m Series BFinancial Advisor*Preferred Stock OfferingFinancial Advisor*has acquiredBuyside Advisor*has completed a financing consisting of$24,000,000Series D Convertible Preferred StockPlacement Agenthas been acquired bySellside Advisorcomprised of operating businesses inc

21、luding has been acquired by an affiliate ofFounder,Chairman&CEO Robert D.GlaserSellside Advisora portfolio company of217m IPO on AIMFinancial Advisor*has been acquired bySellside Advisor*has been acquired byFairness OpinionAcquisition Financing has made an investment inFinancing Advisor*partnership

22、investment fromFinancial Advisor*has received a growth investment fromFinancial Advisor5Sharing valuable and unique perspectives on navigating market conditions globally and positioning our clients for continued success.Highlights From Our 2023 Global Tech Conference in New York CityMark Your Calend

23、ar for Our 2024 Global Tech Conference in London!Our next Global Tech Conference will be held on March 14,2024,at the London Hilton on Park Lane.Please save this date in your calendar.We hope to see you there!600+Conference Attendees70+Participating CompaniesTargetedOne-on-One Meetings With High-Pro

24、file Capital Providers2023 Video Games Panel:How to Play It From Here2024 London Global Tech ConferencePanelists:Hosted By:Daniel Gossels,Managing Director,Houlihan LokeyJosh Yguado,CEOChristina Seelye,CEOKevin Segalla,CEO$144.4$179.1$192.7$182.9$184.0$191.0$198.2$205.7201920202021202220232024202520

25、26The Video Game Industry Stabilized and Returned to Growth in 2023Video Game Market to Exceed$200 Billion in 2026(1)($B)CommentaryThe industry stabilized as it returned to modest growth in 2023;video game revenues are on track to surpass$200 billion by 2026.Growth in 2023 was driven by better conso

26、le supply,a stronger new release lineup,growth in the subscription model,and live game services.The mobile market,the biggest segment by device,is facing headwinds due to the elimination of IDFA and a squeeze on disposable incomes,declining by 2.0%in 2023 from the prior year.2023 saw many video game

27、 companies look inward,rationalize operations,reduce costs(80+gaming companies announced layoffs in 2023),and position themselves for profitable growth in 2024 onward.The long-term outlook for the market remains strong,supported by continued growth in the number of gamers,a trend propelled by increa

28、sing penetration across multiple generations.6(1)Newzoo,Global Games Market Report(October 2023).(2)Percentages are 2022A/2023E YoY growth.(3)Includes mobile and tablet revenue.The video game market has grown from pre-COVID-19 levels of$144 billion in 2019 to post-COVID-19 levels of$184 billion in 2

29、023.Revenues by Segment(1)($B)Video Game Market Returned to Growth in 2023(1)Mobile accounts for 50%of total gaming revenues.Asia-Pacific and North America combine to account for 73%of the gaming market.PC$40.3(-0.5%)(2)Mobile$90.4(-2.0%)(2)Console$53.2(+2.7%)(2)(3)2023 Total$184.0B(+0.6%)YoY Growth

30、Asia-Pacific$84.1(-0.8%)(2)North America$50.6(+1.7%)(2)Latin America$8.7(+3.8%)(2)Europe$33.6(+0.8%)(2)Middle East and Africa$7.1(+4.7%)(2)24.0%7.6%-5.1%0.6%3.8%20202021202220232026The video game market has returned to growth in 2023 and is forecasting stronger growth through 2026.(60%)(40%)(20%)0%2

31、0%40%60%80%100%Jan-20Jul-20Jan-21Jul-21Jan-22Jul-22Jan-23Jul-23Jan-24NasdaqS&P 500Video GamesNotable Industry HeadwindsPost-Pandemic Normalization:Slower growth,as the industry has not been able to sustain pandemic-driven growth seen during 2020 and 2021.Privacy:Privacy changes like IDFAs removal ha

32、ve made user acquisition more challenging for mobile games across the board,and in response,mobile developers have been acquiring advertising technology platforms.China:Challenging regulatory environment,as video game companies need regulatory approval to monetize new games.However,the Chinese gamin

33、g regulator recently softened its rhetoric and approved the release of a batch of games;investors rallied behind this signal in 2024,leading to Chinese gaming stocks regaining some ground.Inflation:Inflation has weighed on consumers and ultimately impacted discretionary spending,driving a reduction

34、in gaming sales.Supply Chain Disruption:Supply constraints of new-generation consoles have led large gaming publishers to delay the releases of major titles,creating a drag on 2022 revenues;2023 saw a large slate of high-profile game releases,and 2024 is showing similar signs of improvement.Ukraine

35、and Labor Shortages:The war in Ukraine has been challenging to many video game companies with talent in the region;this is exacerbating what is already a very tight market for video game developer talent,alongside wider public markets and the tech sell-off in particular.Recessionary Fears:While rece

36、ssionary fears have subsided in the U.S.,China,the largest market for video games,could be facing an economic decline stemming from recent fears surrounding its debt crisis.1234567While the Industry Has Faced a Number of Headwinds Over the Past Two Years,Recent Market Performance Signals Market Stab

37、ilizationRelative Stock PerformanceSelected Companies in Video Game Index123456Since Peak on February 17,2021:(53.6%)77Source:S&P Capital IQ as of 2/12/2024.Feb-24 Performance Since31.3%53.5%(0.1%)54.2%75.3%(10.9%)Jan.2020Jan.202335.7%25.6%(41.6%)Jan.20210.0 x5.0 x10.0 x15.0 x20.0 xJan-21Jul-21Jan-2

38、2Jul-22Jan-23Jul-23Jan-24Large Integrated PublishersPC/ConsoleOnline,Social,MobileMicrocapModerate Valuations Should Provide Catalyst for Greater M&A/Take-PrivatesWe see a unique opportunity with microcaps,which many believe have been oversold.EV/NTM EBITDA Multiples8Source:S&P Capital IQ as of 1/1/

39、2024.(1)Large Integrated Publishers Index found on page 29.(2)PC/Console Index found on page 29.(3)Online,Social,Mobile Index found on page 30.(4)Microcap Index found on page 30.(1)(2)(3)EV/NTM EBITDA MultiplesJan.2021Jan.2022Jan.2023Jan.2024Large Integrated Publishers15.9x10.9x9.7x11.3xPC/Console18

40、.4x14.69.4x10.8xOnline,Social,Mobile12.9x11.57.5x6.8xMicrocap17.7x10.6x5.3x2.5x(4)In 2023,mobile gaming revenue saw its second consecutive annual decline,largely driven by a pullback in consumer spending(due to inflationary pressures),as well as a reduction in the active player base.The shift away f

41、rom pandemic restrictions provided players with more entertainment options,leading to decreased game-playing time.Popular mobile game companies are struggling with monetizing users as well as expanding their engaged user base.Rovio Entertainment has seen average revenue per user drop from$0.17 to$0.

42、12 from Q1 21 to Q3 23.Over that same period,the user base has remained flat,going from 3.1 million to 3.0 million daily active users,respectively.A combination of reduced revenue per DAU(less engaged player base)and a more inefficient marketing model post-IDFA led to a lower number of installs,caus

43、ing a significant rise in CPIs across both IOS and Android since 2018.Mobile:Following a Prolonged Period of Extraordinary Growth,the Industry Saw its Second Consecutive Decline.Is the Worst Behind Us?CommentaryMobile Game Revenue Pulls Back Year Over Year(1)Mobile Game Spending($B)Notes:DAU:daily a

44、ctive user,IDFA:identifier for advertisers,and CPI:cost per install.(1)Newzoo,Global Games Market Report(October 2023).(2)HSBC Video Games Report.Average CPI by Platform$0.28$0.16$0.29$0.14$0.42$0.20iOSAndroid201820202022Declining Revenue per DAU(2)IDFA Changes Leads to Higher CPIs(2)Average Daily A

45、ctive Users(M);Average Revenue per Daily User$30.0$36.9$50.4$63.2$68.2$86.3$93.2$92.2$90.420152016201720182019202020212022202320222023 YoY:(2.0%)93.13.13.23.23.63.33.13.23.23.13.0$0.17$0.17$0.15$0.12$0.10$0.12$0.12$0.13$0.13$0.13$0.12 Q121Q221Q321Q421Q122Q222Q322Q422Q123Q223Q323Rovio Daily Active Us

46、ersRovio Average Revenue per Daily UserPC/Console:Returned to Growth 2023;the Outlook Is PositiveConsole Sales Have Proven Resilient(3)CommentaryPC/Console Gaming Revenue Still Growing in 2023(1)Game Releases Have Skyrocketed(2)10(1)Newzoo,PC&Console Gaming Report(May 2023).(2)SteamDB.(3)Statista.Th

47、e video game industry saw heightened levels of growth during the pandemic;however,recently,the growth in the PC and console markets slowed,mostly attributed to the lack of hardware supply,decreased playtime,and delay to popular game releases.Despite the PC and console market having modest growth in

48、2023,equating to$93.5 billion in global revenues,the outlook remains positive in 2024 and beyond due to a strong lineup of new releases and increasing ways to monetize users with paid downloadable content(DLC)and microtransactions.Game releases have been impressive in 2023,with an average of 1200 ga

49、mes being released per month on Steam,which represents a 15%increase over 2022 figures.Console sales have remained strong due to the strength of current generation consoles(Xbox Series X,PS5);the forecasted period is returning to growth supported by the next generation of consoles(Nintendo Switch 2)

50、.31.631.932.434.233.837.140.240.540.330.732.633.942.742.754.554.151.853.2$62.3$64.5$66.3$76.9$76.5$91.6$94.3$92.3$93.5201520162017201820192020202120222023PCConsoleNumber of Monthly Game Releases on Steam5006007008009001,0001,1001,2001,3001,40020192020202120222023PC/Console Spending($B)2.73.78.14.02.

51、52.32.72.62.52.52.427.226.532.934.338.341.542.643.744.645.446.114.016.415.318.919.516.315.315.415.215.114.9$43.9$46.7$56.3$57.2$60.3$60.1$60.6$61.7$62.3$62.9$63.520182019202020212022202320242025202620272028Handheld ConsolesHome ConsolesHybrid ConsolesGlobal Console Sales($B)Delayed Franchise Release

52、s in 2022 Contributed to the Success for 2023AwarenessPurchase IntentHighlightsAwarenessPurchase IntentHighlightsResident Evil 4(Capcom)50%20%3 Million UnitsSold in Its First Two DaysHogwarts Legacy(Avalanche Software)40%15%12 Million Copies Sold in Its First Two WeeksSonys Spider-Man 2(Insomniac Ga

53、mes)47%17%5 Million CopiesSold in Its First 11 DaysStar Wars Jedi:Survivor(Respawn Entertainment)39%14%800,000 UnitsSold in Its First MonthLegend of Zelda(Nintendo)43%17%10 Million CopiesSold in Its First Three DaysDiablo IV(Blizzard Entertainment)37%13%$670 Millionof Sales in Its First Five DaysStr

54、eet Fighter 6(Capcom)42%15%2 Million UnitsSold in Its First MonthDead Island 2(Dambuster Studios)33%12%2 Million Copies Sold in Its First MonthFinal Fantasy XVI(Square Enix)41%14%3 Million CopiesSold in a Week as a PS5 Exclusive GameStarfield(Bethesda Game Studios)26%9%10 Million PlayersAcross All P

55、latforms as of September 20Tears of the Kingdom,Hogwarts Legacy,and Starfield were among the delayed high-profile games that had successful releases in 2023.11Sources:Press releases;Newzoo,PC&Console Gaming Report(May 2023).(1)Awareness and purchase intent percentages based on a survey of PC and/or

56、console gamers ages 1050 in the U.S.2023 Had Highly Successful Video Game Releases(1)Jan-24Feb-24Apr-24Mar-24The Outlook for the H1 2024 Pipeline Is Equally Encouraging12Sources:Company press releases,GameSpot.High Profile 2024 Game ReleasesPersona 3 Reload(P-Studio)Tekken 8(Bandai Namco and Arika)C

57、o-developed by Bandai Namco and Arika,the 10th installment in the franchise was released on January 26.Final Fantasy VII Rebirth(Square Enix)Released on February 29,Rebirth represents the second installment in the planned trilogy of the remake of the 1997 PlayStation game.Released on February 2,Pers

58、ona 3 Reload is a remake of the 2006 Persona 3 game.Destiny 2:The Final Shape(Bungie)Following delays,the game is now set to release on June 4 and represents the conclusion of Destinys primary storyline.With 2023 game releases performing well,the first half of 2024 is poised to be strong,leveraging

59、remakes of classic games.Prince of Persia:The Lost Crown(Ubisoft)Ubisoft released the first major installment of the Prince of Persia franchise in more than 10 years on January 18.Suicide Squad:Kill the Justice League(Rocksteady Studio)Released on February 2,Warner Bros has created a genre-bending a

60、ction-adventure shooter game.The Nintendo Switch remake of the 2004 Gameboy title released on February 16.Princess Peach:Showtime(Nintendo)Releasing on March 22,Showtime represents the first time Princess Peach is featured as the main protagonist since Super Princess Peach.Mario vs.Donkey Kong(Ninte

61、ndo)A powerful shift in media consumption to video gaming(across all generations)is expected to drive long-term sustainable growth globally.We Are Bullish as the Video Game Industry Is Resilient,and Gamers Are Still Gaming(at Record Numbers!)The Video Game Market TAM in 2023 in Context(3)($B)13Note:

62、Game enthusiasts are consumers who engage with gaming through playing,viewing,owning,and/or social behavior.(1)Newzoo,Global Games Market Report(October 2023).(2)Newzoo,How different generations engage with video games today.(3)Precedence Research,Grand View Research,Steamcharts,Statista.(4)PayTV co

63、nsists of cable,satellite,and IPTV.(5)Video streaming consists of SVoD.Cross Generational Appeal of Video Games(2)Total Players Forecast to Reach 4 Billion by 2026(1)CommentaryTotal video game players are on track to hit nearly four billion by 2026.Although Gen Alpha and Gen Z are more engaged than

64、older generations,video games hold a universal appeal across generations;their participation and engagement with gaming have increased:approximately 22%of Gen Alpha,19%of Gen Z,and 18%of Millennials favorite form of entertainment is video games.Younger generations are also more willing to spend mone

65、y on video games;approximately 60%of Gen Alpha,Gen Z,and Millennials have all spent money on video games in the past six months;as Gen Alpha grows and gains access to their own sources of disposable income,we expect this percentage to increase.The video game market is approaching the size of the Pay

66、TV market and is significantly larger than video streaming,movie box office,and music streaming.2.62.83.13.23.43.8201920202021202220232026Player Count Has Grown Steadily Since 2019206184954626PayTVVideo Games Video StreamingBox OfficeMusic Streaming2x7x4x(5)(4)The video game industry is 2x the size

67、of the video streaming industry and 4x the size of the movie box office market in 2023.94%90%82%64%43%58%60%61%45%31%Gen AlphaGen ZMillenialsGen XBoomers%of Each Generation That Are Video Gaming Enthusiasts%of Players Who Spent Money on Video Games in Past Six MonthsRecent Earnings Announcements Ref

68、lect Long-Term Optimism14Sources:Refinitiv,company earnings reports,company earnings call transcript,press releases,equity research.Share Price12/31/20222/13/2024$28.22$25.48“We have been actively rolling out transformation initiatives across the group in order to respond to the market evolution and

69、 accelerate the execution of our strategy while reducing our cost structure.In Q3,we made further progress in streamlining our operations and,at the same time,saw overall talent retention continue to improve.”Share Price12/31/20222/13/2024$4.54$2.04“Although Embracer is progressing well against the

70、early goals of its restructuring program,the financial impact of its plan is expected to become more evident in the second half of the fiscal year.In addition,the composition and size of the Embracer that emerges from the program is difficult to envision at present,with management seemingly becoming

71、 more interested in the eventual divestiture of assets.”Share Price12/31/20222/13/2024$104.13$155.27“Weve always managed Take-Two for the long term,and we have great confidence in our groundbreaking pipeline for fiscal 2025 and beyond,which we believe will enable us to grow our net bookings,increase

72、 our scale,and enhance our profitability Were currently working on a significant cost reduction program across our entire business to maximize our margins while still investing for growth.”“Near term,we expect Q4 growth to be slower due to uncertain timing of domestic game launch(Dream Stars likely

73、end of Q4)and high base of international game(Goddess of Victory:NIKKE launched in Q4 22).Mini game is a bright spot,which Tencent leverages its strength in the mini-program ecosystem;management stressed that they will continue to focus on its platform strategy.”Share Price12/31/20222/13/2024$42.84$

74、36.73Share Price12/31/20222/13/2024$41.95$58.23“Nintendo Switch entered its seventh year since launch it was unprecedented to expect sales of 15 million units of hardware and 180 million units of software in the seventh year of the life of a system during the holiday season,we noted a particular ris

75、e in first-time buyers of our hardware,and we see this as a positive sign for the Nintendo Switch business going forward.”Share Price12/31/20222/13/2024$122.18$137.55“In Q3,our new modes drove improved engagement,and the early impact of our new content in the current quarter is promising.To generate

76、 future growth,we are focused on entertaining core players and engaging new players by investing in geographic expansion,innovating in the game economy,and making it easier than ever for players to jump into our gameplay.”“Q4 results came in below expectations with revenue of JPY 84.6 billion and op

77、erating income of JPY 4.5 billion.While Q4 included unanticipated challenges,we are particularly proud of our launch of THE FINALS in December,a brand-new IP which surpassed even our expectations in both bookings and breadth of popularity.”Share Price12/31/20222/13/2024$22.46$17.08Share Price12/31/2

78、0222/13/2024$28.46$43.74“Our growth continues to be the result of innovation and investment in the platform as well as our amazing creator community.On the international side,DAUs in the U.S.and Canada grew 17%.DAUs outside of the U.S.and Canada grew 23%.This growth,we believe,is supported by our in

79、ternational expansion playbook,including a foundation of safety and stability,automatic AI-powered translation.”Q4 Earnings as of 2/8/2024Q2 Earnings as of 11/16/2023Q3 Earnings as of 11/15/2023Q3 Earnings as of 2/8/2024Q3 Earnings as of 2/9/2024Q3 Earnings as of 1/30/2024Q3 Earnings as of 2/8/2024Q

80、4 Earnings as of 2/7/2024F2P and DLC Continue to Drive Growth Across TitlesGrowth of Micro Pay Transactions in AAA Games(2)CommentaryThe F2P model,in combination with“live services,”in which a constant stream of new levels keeps audiences engaged,has emerged over the past decade as a powerful,more a

81、ccessible model,utilizing in-game purchases and advertising to monetize audiences across a significantly larger base of gamers.In-game spend is transforming game economics,now representing 58.5%of game revenues for Sony in 2022,with popular games now having a much longer monetizable tail through in-

82、game purchases.The“pay to win”model,as well as in-game customization,has the potential to create a more profitable game compared to the existing premium games model.The driver of live services game revenues is time spent on the platform;game companies do not just compete with each other for this tim

83、e but rather compete with all entertainment platforms.For live service games to be successful,video games must dethrone users engagement from another media form.Large gaming companies are set to pivot their leading AAA and AA franchises into more of a live service model.This will take place in exist

84、ing games such as Grand Theft Auto and Call of Duty,as well as new initiatives such as Sonys plan to launch 10 live service games by 2026.Significant Percentage of Revenues Are Derived From Paid DLC(2)15(1)Statista.(2)HSBC Video Games Report.$58.8$67.0$73.8$75.6$78.7$83.6$21.6$21.5$22.7$23.1$23.7$24

85、.5$80.4$88.5$96.5$98.7$102.4$108.2 201820192020202120222023 MobilePC/ConsoleNew,more accessible business models,such as F2P,have reduced barriers to entry and driven user engagement and growth.$0$1,000$2,000$3,00020122013201420152016201720182019202020212022Unit SalesIn-Game MonetizationEA Sports FC(

86、Formerly EA FIFA)Franchise Revenues($M)$0$500$1,000$1,500Jan-14Jan-15Jan-16Jan-17Jan-18Jan-19Jan-20Jan-21Jan-22Grand Theft Auto 5 Revenues Split($M)F2P Global Video Game Revenue(1)($B)Sony Gaming Software Revenues Breakdown40%45%45%48%39%22%56%49%46%52%60%55%55%52%61%78%44%51%54%48%Q121Q221Q321Q421Q

87、122Q222Q322Q422Q123Q223Full Game SalesAdd-On ContentConsumer Brands Are Looking to Leverage Video Games and the Communities to Reach Their Target AudiencesCollaborations Expanding Into New Categories(2)16(1)Statista.(2)Newzoo,How IP&brand collaborations level up games.Fortnite Has Successfully Colla

88、borated With Major IPs(2)CommentaryBrands are viewing video games as an avenue in which they can reach a significant number of viewers.The in-game advertising market in the U.S.is more than$36 billion and is growing at an 18.7%CAGR from 2017 to 2027.Battle Royale is the genre that has been most bene

89、fited by collaborations.With Fortnite leading the way,Battle Royale games have amassed more than 130 brand collaborations from 2021 through the first half of 2023.Brand collaborations are also taking shape in less traditional manners,as video game companies are partnering with non-gaming brands insi

90、de and outside the game.For example,Nintendo partnered with Oreos to create Pokmon-themed Oreos ahead of new game releases,Barbie partnered with Microsoft to release a Barbie-themed Xbox,and League of Legends partnered with Louis Vuitton to integrate unique skins into the game.June 2023November 2023

91、September 2021December 2019XXXNovember 2022January 2021XXXFortnite has consistently introduced brand partnerships as premium add-ons and skins,helping provide further monetization.Video game companies have been introducing non-traditional partnerships that are woven into game play.In-Game Advertisin

92、g Represents a Huge Market(1)($B)U.S.In-Game Advertising Market Size$10.6$12.9$15.6$17.9$25.4$30.1$36.1$42.6$49.4$54.0$58.520172018201920202021202220232024202520262027$1,363$955$433The Super Mario BrosOppenheimerJohn Wick:Chapter 410,8849,98911,59710,41143,29753,194May-22Jun-22Jul-22Aug-22Sep-22Oct-

93、22316%Increase in Players Following the Release of Anime Series Cyberpunk:Edgerunners316%Video Game IP in Transmedia Is Succeeding on All FrontsThe Mouse Is Leaning Into Games!17(1)The-Numbers.(2)Newzoo,Global Games Market Report(October 2023).Driving Video Game/Console Sales(2)Popularity of Video G

94、ame IP(1)($M)Box Office Takings From Blockbuster Movie ReleasesCyberpunk 2077 Average Players on SteamCommentaryPopularity of video game IP in movies is succeeding regular box office hits,with The Super Mario Bros.Movie outperforming Oppenheimer and John Wick:Chapter 4.These adaptions leverage famil

95、iar video game IP while also taking advantage of the benefits inherent to the box office medium,including lengthy dialogue and action sequences.This,in turn,drives game and console sales in a feedback loop,where the movies create demand for the games and their platforms,which creates more demand for

96、 cinematic adaptions.Growth in transmedia is expected to continue given Disneys recent$1.5 billion investment into Epic Gamesthe collaboration will bring together Disneys brands and franchises with the hugely popular Fortnite in a transformational new games and entertainment universe.Video Game IPNo

97、n-Video Game IPInvestment HighlightsAnnounced:February 2024Completed:PendingDisney is leaning into the video game arena with Epic Games to create an all-new games and entertainment universe.The new persistent universe will offer gamers interactions with notable Disney IP like Marvel,Star Wars,Pixar,

98、and more.“When I saw Gen Z and Gen Alpha and even millennials,and I saw the amount of time they were spending in terms of their total media screen time on video games,it was stunning to me,equal to what they spend on TV and movies.And the conclusion I reached was,we have to be there,and we have to b

99、e there as soon as we possibly can,in a very compelling way.”Bob Iger,CEO of DisneyDisney invests$1.5 billion in Epic GamesDisplays the larger TAM opportunity for video gamesM&A Slowed in 2023 Due to a Variety of Factors,Including Lower Public Market Valuations,Tighter Credit Markets,and Fewer Activ

100、e Strategics18Sources:PitchBook,S&P Capital IQ as of 12/31/2023.(1)Allocation of transaction values and deal counts based on completion date of the acquisition.(2)Activision Blizzard deal is included in 2022.(3)Includes acquisitions under Miniclip.Strategic M&A Has Slowed Since Early 2022($M)Transac

101、tion Value of Video Gaming M&A Deals(1)($B)(2)Number of Video Game Transactions by Buyer(2)514840679767232017201820192020202120222023$8.5$5.9$3.1$11.6$32.2$7.368.7$91.02017201820192020202120222023Number of Video Gaming M&A Deals Announced(1)(3)$16,080$5,620$5,313$4,002$11,641$5,800$171$65$148$1,512$

102、623124191720181574763Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423Deal ValueDeal Count$71,887127540212LTM 12/31/2022LTM 12/31/2023However,Several Notable Transactions Closed Over the Past Year19Sources:PitchBook,S&P Capital IQ as of 12/31/2023.Summary of Blockbuster TransactionsTransac

103、tion HighlightsAnnounced:January 2022Completed:October 2023Enterprise Value:$68.7 BillionFor Microsoft,gaming is a relatively small part of the business(9%of total revenue),but as Microsoft says,gaming is the fastest-growing sector in entertainment,and Activision brings PC,mobile,and console games,c

104、overing all bases.Notable IP in Activisions portfolio includes Call of Duty,World of Warcraft,Diablo,Hearthstone,Overwatch,and Candy Crush Saga.“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platf

105、orms.”Satya Nadella,Chairman and CEO of MicrosoftTransaction HighlightsAnnounced:April 2023Completed:August 2023Enterprise Value:$603 MillionSega Sammy,best known for its Sonic the Hedgehog franchise expands its mobile game offering with the acquisition of,Angry Birds developer,Rovio.Other Rovio pro

106、perties include games such as Moomin Puzzle&Design and Small Town Murders.“Among the rapidly growing global gaming market,the mobile gaming market has especially high potential,and it has been Segas long-term goal to accelerate its expansion in this field.”Haruki Satomi,President and CEO of Sega Sam

107、my HoldingsTransaction HighlightsAnnounced:April 2023Completed:July 2023Enterprise Value:$4.9 BillionThe Saudi Public Investment Fund through Savvy Games Group continues to build out its video game presence with the acquisition of a leading mobile game developer,Scopely.Key Scopely IP includes The W

108、alking Dead Road to Survival,Marvel Strike Force,Star Trek Fleet Command,YAHTZEE With Buddies,and Monopoly Go.“Scopely is one of the fastest-growing games companies today,and we have long admired its ability to build loyal,engaged player communities.”Brian Ward,Chief Executive Officer of Savvy Games

109、 GroupSega Sammy acquires RovioDemonstrates the importance of increasing exposure to the mobile segment.Savvy Games acquires ScopelyIllustrates Saudis commitment to expand into the video game market.Microsoft acquires Activision BlizzardExemplifies how content and IP are key to building critical mas

110、s in the video game industry.Transaction HighlightsAnnounced:February 2024Completed:PendingEnterprise Value:$1.1 BillionCVC Capital Partners and Haveli Investment Management collaborate on acquiring Jagex,developer of the classic game RuneScape from Carlyle.Other Jagex IP includes Old School RuneSca

111、pe,Scum,Melvor Idle,and This Means Warp.“The video gaming sector has huge potential,and with CVC and Havelis support,I am confident that we can continue to enhance our platform for the good of both our existing valued gamers and potential new gamers yet to experience our products.”Phil Mansell,CEO o

112、f JagexCVC and Haveli acquire JagexPortrays the increasing interest of financial sponsors in the video games market.DateTargetAcquirerDeal Size($M)LTM RevenueMultipleLTM EBITDAMultipleFeb-24Private Investor Group$500-Feb-24$1,148-Dec-23$96-Nov-23$405.7x10.5xSep-23-Sep-23$300-Sep-23-Aug-23$89-Jul-23-

113、Jul-23$1,590-Jul-23$1,64410.8xNMJun-23-May-23$4223.5x13.2xApr-23-Apr-23-Apr-23-Apr-23$6362.6x19.4xApr-23$4,9002.8x20.0 xFeb-23-Jan-23-Top Quartile5.7x19.6xMean5.1x15.8xMedian3.5x16.3xBottom Quartile2.8x12.5x20Sources:PitchBook,S&P Capital IQ as of 2/16/2023.And There Are Signs That the Pace of M&A I

114、s Starting to Pick Up(cont.)Several Notable New Market Entrants Leaning Into Video Games21Sources:PitchBook,company press releases.(1)As of February 9,2024.TargetCategoryDetailsMobileMobile game development studio,acquired by Scopely in June 2023.MobileLeading mobile game provider,acquired by Savvy

115、Games for$4.9 billion in April 2023.PC/MobileVideo game developer,receives$1 billion investment from Savvy Games in July 2022.eSportsAcquired by Savvy Games for a combined value of$1.5 billion in January 2022.PC/ConsolePIF increased its stake in gaming conglomerate Nintendo to 8.3%.PC/ConsolePIF inc

116、reased its stake in gaming conglomerate EA to 9%.Notable InvestmentsYear Founded:2021Headquarters:Riyadh,Saudi ArabiaWebsite:AUM:$37.9 BillionDescription:Saudi Public Investment Fund is making a push into the video game industry,pouring billions of dollars into the space.Savvy Games Group is a subsi

117、diary of PIF,operating as an esports platform and acquirer.Spotlight on New EntrantsTargetCategoryDetailsMobileMobile game studio acquired by Netflix in November 2022.PC/MobileVideo game developer acquired by Netflix in March 2022.MobileMobile game studio acquired by Netflix in March 2022 for$69.4 m

118、illion.PC/ConsoleVideo game developer acquired by Netflix in September 2021.Notable AcquisitionsYear Founded:1997Headquarters:California,U.S.Website:Market Cap:$207.5 Billion(1)Description:Netflixs traditional model focused solely on streaming services,but it has been making a push into the video ga

119、me industry in recent years.We expect to see a growing number of financial sponsors investing in the video games space as private equity firms lean into compelling market opportunities and rational valuations.Growing Number of Financial Sponsors Are Investing in Video Games22Sources:PitchBook,S&P Ca

120、pital IQ as of 2/9/2024.Sponsor/Sponsor-Backed Video Game TransactionsMar-19EV n.d.Mar-19EV n.d.Oct-19EV$112MJan-24Investment Amt$110MFeb-24EV$1.1BMay-20EV n.d.Apr-20EV$530MJan-21EV n.d.Nov-21EV$75MJul-21Investment Amt$235MSep-21Investment Amt$150MAug-21EV n.d.Jul-21EV n.d.Nov-21EV$5.0BSep-21EV n.d.

121、Jan-22EV n.d.Jul-22EV n.d.Sep-22EV n.d.Apr-22EV$1.1BSep-22Investment Amt$50MDec-22EV$83M201920202024202120222023Feb-23EV n.d.Jul-23EV$4.9BApr-23EV n.d.Jun-23EV n.d.Aug-23Investment Amt$100MSpotlight Market Opportunity:The Indie Games Market23AAA GamesIndie GamesHighRevenueLowRevenueWhite Space Oppor

122、tunity The indie market is uniquely profitable,and yet few large-scale publishers are focused on the category,creating a significant white space opportunity.Medium-sized budgets($0.5$5 million)have the potential for outweighed success as lower budget zeitgeists consistently outperform mega-budget AA

123、/AAA(i.e.,budget is not correlated to commercial success).Only a handful of publishers today have the resources or capabilities,with a number of publishers leaving(Foundry by Frontier and Secret Mode by Sumo Digital)the market.We believe there is a significant opportunity to consolidate what is now

124、a highly fragmented indie market.Note:Not an exhaustive list of companies.After Historical Investment Levels in 2021 And 2022,Video Game Investments in 2023 Slowed SignificantlySources:PitchBook,S&P Capital IQ as of 2/15/2024.(1)Represents transactions since inception.24InvestorVideo Game Deals(1)Ke

125、y Investments86735753503332272311Global Gaming Investment Drops Off in 2023($B)Investments in Video Gaming by Financial Investors$1.1$1.4$1.6$2.1$1.7$1.7$2.0$3.9$3.5$1.1$4.1$4.2$6.9$4.4$8.0$4.7$9.7$9.2$9.9$1.1$5.2$5.6$8.5$6.5$9.7$6.4$11.8$13.1$13.4$2.2214265274292289295354515388207201420152016201720

126、1820192020202120222023Early StageLate StageNumber of DealsDateTargetInvestorSegmentDeal Size($M)Raised to DatePre-Money ValuationFeb-24PC/Console$1,500$7,580-Jan-24PC/Console$110$300-Jan-24Mobile$100$130$390Nov-23PC/Console$17$17$63 Oct-23Web3 Gaming$25$29$275 Sep-23PC/Console$13$16$30 Sep-23Web3 Ga

127、ming$33$133$100 Sep-23Web3 Gaming$54$84-Sep-23Mobile$90$120$400 Aug-23Mobile$100$123-Aug-23VR/AR$50$120$460 Jul-23Web3 Gaming$54$54-Jul-23PC/Console$31$36-Jul-23eSports$50-Jul-23PC/Console-Apr-23eSports$20$39-Mar-23Mobile$31-Mar-23PC/Console$40-Mar-23PC/Console$55$55-Feb-23eSports$265-We Are Seeing

128、a Step-Up in the Pace of Video Games Investments,With Several Notable Financings Having Been Announced in Q125Sources:PitchBook,S&P Capital IQ as of 2/16/2023.Survey of 243 Studios on AI Usage(1)Other Notable Trends in the Video Game SectorSubscription Models Are Expected to Gain MomentumGenerative

129、AI today can be used to help video game developers with writing code,art designers and creative directors with formulating in-game designs and even creative ideas,and it can help with language translation within the game subtitles as well as voice dubbing.AI can be used to create intelligent and rea

130、listic behaviors for non-playable characters(NPCs)so that they can exhibit more complex decision-making,“develop a personality,”adapt to player actions,and provide a more immersive gaming experience.Machine-learning techniques can analyze gameplay data to identify bugs,balance issues,and improve gam

131、e mechanics.AI-driven testing can help speed up the development cycle and ensure a more polished final product.AI has the potential to revolutionize video game development by enabling more immersive worlds,intelligent NPCs,personalized experiences,and streamlined development processes.Generative AI

132、Is Met With Controversy,Yet Has the Potential to Change Video Game Creation$17.2$18.6$21.0$23.7$26.8$30.2$34.2$38.6$43.5$49.1$55.5 20212022202320242025202620272028202920302031Global subscription-based gaming revenue is projected to reach more than$55 billion by 2031 and grow at a CAGR of 12.9%betwee

133、n 2022 and 2031.Video game companies are attempting to increase the predictability of revenues by introducing subscription models,leading to acquisitions in an attempt to expand IP,which they can put on their subscription services,i.e.,Microsoft acquiring Activision Blizzard.Subscription-based model

134、s have seen a steady uptick,where in 2022,PlayStation Plus had 47 million users,Nintendo Switch Online had 36 million users,Xbox Game Pass had 29 million users,and Nvidia Geoforce had 25 million users.Global Subscription-Based Gaming Revenue($B)(2)(1)A16Z.(2)Allied Market Research.2664%99%87%Plan on

135、 Creating In-HouseModelsPlanning to Use AIUsing AI27Video Game Market($B)Total Player Forecast(B)Cross Generational Appeal(1)The video game industry stabilized and returned to growth in 2023.The industry returned to growth in 2023,driven by better console supply,a stronger new release lineup,growth

136、in the subscription model,and live game services.Industry valuations have moderated versus frothy levels seen in 2021,creating compelling opportunities for investors and buyers to enter the market.We are bullish as the video game industry is resilient and will continue to evolve and reinvent itself,

137、and gamers are still gaming(at record levels!).Total video game players are on track to hit nearly four billion by 2026,as video games remain the No.1 form of entertainment for younger generations.New innovative content and revenue models are expected to drive user engagement and revenue over the co

138、ming years(F2P,DLC,Transmedia).We have seen a noticeable pick-up in M&A activity in recent months following a slowdown in 2023.We are seeing a new wave of strategic(i.e.,Savvy Games,Netflix,and Disney)and financial investors leaning into the video games space as parties take notice of compelling mar

139、ket opportunities and rational valuations.We remain optimistic about the long-term outlook for the video game industry.We believe that strong pent-up demand on both the sellside and buyside will provide a catalyst for greater investment and M&A across the video game space in 2024.We would welcome th

140、e opportunity to share our thoughts and perspectives on the video games industry with you.Conclusion$183$184$191$198$206202220232024202520262.83.13.23.43.82020202120222023202694%90%82%64%43%58%60%61%45%31%Gen AlphaGen ZMillenialsGen XBoomersAAA GamesIndie GamesHighRev.LowRev.WhiteSpaceIndie Market O

141、pportunity(1)Percentage of Each Generation That Are Gaming Enthusiasts.Percentage of Players Who Spent Money on Video Games in Past Six Months.AppendixPublic CompanyTrading Multiples29Source:S&P Capital IQ as of 2/12/2024.Large Integrated PublishersPC/Console($in millions,except stock price)EV/Reven

142、ueEV/EBITDACompanyExchangeStock Price%of 52-wk HighCash&ST InvEquity ValueEnterprise ValueCY 2022ACY 2023ECY 2024ECY 2022ACY 2023ECY 2024ENetEaseNasdaqGS$108.05 91%$17,871$70,812$54,528 3.9x3.7x3.4x16.7x12.4x11.1xRobloxNYSE43.74 92%2,193 26,956 27,060 12.2x7.9x6.4xNM NM 48.2xNEXON Co.TSE17.08 78%4,5

143、28 14,723 10,445 3.9x3.4x3.4x12.5x9.7x12.2xKraftonKOSE161.12 93%2,504 7,560 4,918 3.3x3.5x3.0 x7.2x7.9x7.4xEmbracer GroupOM2.04 36%366 2,561 4,440 1.4x1.1x1.0 x4.9x4.1x3.8xCD ProjektWSE28.29 64%176 2,850 2,643 12.2x8.9x13.5x23.4x15.1x26.7xNcsoft Corp.KOSE153.97 44%1,633 3,129 2,018 1.0 x1.5x1.5x3.8x

144、10.1x10.3xParadox InteractiveOM19.49 65%129 2,069 1,944 10.3x7.8x7.2x14.9x12.2x10.5xWemade Co.KOSDAQ36.40 62%142 1,218 1,176 3.2x2.5x1.6xNM NM 14.9xPlayWayWSE80.87 68%50 551 500 7.8x6.7x5.9x12.6x9.7x9.5xTeam17 GroupAIM3.03 50%57 442 385 2.3x2.1x2.0 x6.6x10.5x7.2xRemedy EntertainmentHLSE18.98 57%32 2

145、55 230 4.9x6.5x3.3xNM NM 14.2xFocus Home InteractiveENXTPA14.84 26%11 99 223 1.5x1.0 x0.9x3.7x3.6x2.6xDigital BrosBIT10.71 43%5 157 209 1.4x1.5x1.4x4.0 x4.3x3.8xGungHo OnlineTSE16.29 81%993 1,138 196 0.2x0.2x0.2x0.9x0.9x1.1xFrontier DevelopmentsAIM1.84 22%22 72 74 0.5x0.6x0.7x1.7x2.4x2.5xMaximum Ent

146、ertainmentOM0.48 31%7 23 60 0.5x0.5x0.5x6.5x3.6x3.7xDevolver DigitalAIM0.23 51%65 104 39 0.3x0.4x0.4x1.7xNM 4.9xtinyBuildAIM0.08 10%14 16 17 NMNMNMNM NM NM Top Quartile73%$1,313$2,990$3,542 4.7x5.8x3.4x12.5x10.4x11.9xMean56%1,621 7,091 5,848 3.9x3.3x3.1x8.1x7.6x10.8xMedian57%129 1,138 500 2.8x2.3x1.

147、8x6.5x8.8x8.4xFirst Quartile40%27 130 202 1.1x1.0 x1.0 x3.8x3.7x3.8x($in millions,except stock price)EV/RevenueEV/EBITDACompanyExchangeStock Price%of 52-wk HighCash&ST InvEquity ValueEnterprise ValueCY 2022ACY 2023ECY 2024ECY 2022ACY 2023ECY 2024ETencentSEHK$36.73 72%$49,680$362,517$351,531 4.6x4.1x

148、3.7x14.8x11.0 x9.7xNintendo Co.TSE58.23 100%14,261 67,808 54,351 4.3x4.6x5.5x13.2x14.2x16.9xElectronic ArtsNasdaqGS137.55 96%3,104 37,517 35,887 4.9x4.6x4.6x13.5x12.9x13.0 xTake-TwoNasdaqGS155.27 90%922 26,307 29,091 6.0 x5.4x5.0 x32.9x35.5x29.7xKonami HoldingsTSE61.96 98%1,690 8,402 7,343 3.1x3.1x3

149、.0 x12.8x12.1x10.6xCapcom Co.TSE37.77 86%766 7,899 7,226 9.4x6.7x6.6x18.2x16.7x14.8xUbisoft EntertainmentENXTPA25.48 75%1,381 3,126 4,525 2.2x2.3x1.8x9.9x4.4x3.9xSquare EnixTSE43.25 85%1,403 5,189 3,865 1.5x1.6x1.6x9.2x10.3x9.2xSega SammyTSE12.88 60%1,374 2,860 2,512 0.9x0.8x0.7x6.1x6.7x5.6xTop Quar

150、tile96%$3,104$37,517$35,887 4.9x4.6x5.0 x14.8x14.2x14.8xMean85%8,287 57,958 55,148 4.1x3.7x3.6x14.5x13.7x12.6xMedian86%1,403 8,402 7,343 4.3x4.1x3.7x13.2x12.1x10.6xFirst Quartile75%1,374 5,189 4,525 2.2x2.3x1.8x9.9x10.3x9.2xPublic CompanyTrading Multiples30Source:S&P Capital IQ as of 2/12/2024.Onlin

151、e,Social,MobileMicrocap($in millions,except stock price)EV/RevenueEV/EBITDACompanyExchangeStock Price%of 52-wk HighCash&ST InvEquity ValueEnterprise ValueCY 2022ACY 2023ECY 2024ECY 2022ACY 2023ECY 2024EAppLovinNasdaqGS$47.06 96%$502$17,063$18,657 6.6x5.7x4.9x17.5x12.7x10.3xAristocrat ASX28.70 98%2,0

152、56 18,851 17,978 4.6x4.1x4.0 x15.3x12.5x12.0 xNetmarble Corp.KOSE47.36 86%445 3,972 5,291 2.5x2.7x2.5xNM NM 24.8xPlaytikaNasdaqGS7.55 59%1,055 2,769 4,390 1.7x1.7x1.7x4.8x5.3x5.1xStillfront GroupOM1.08 47%80 553 950 1.3x1.4x1.4x3.8x3.7x3.8xDeNA Co.TSE9.26 67%544 1,112 890 0.9x0.9x0.9x10.2x41.9x13.9x

153、Modern Times GroupOM7.41 83%294 917 686 1.3x1.2x1.1x5.2x4.7x4.5xCom2uSKOSDAQ35.76 60%308 565 545 1.0 x0.9x0.8x40.4xNM 15.0 xNHN Corp.KOSE19.12 85%681 917 483 0.3x0.3x0.3x5.1x3.8x3.4xGREE,Inc.TSE3.61 71%349 626 401 0.7x0.8x0.9x4.2x5.9x10.3xHUUUGEWSE6.84 92%128 518 303 1.0 x1.1x1.1x6.1x3.0 x3.5xDouble

154、Down InteractiveNasdaqGS10.64 93%275 527 295 0.9x1.0 x0.9x2.9x2.6x2.6xNeowiz GamesKOSDAQ19.39 49%156 429 270 1.2x0.9x0.9x8.8x5.3x5.7xJOYCITY Corp.KOSDAQ2.24 60%21 158 215 1.6x2.0 x1.7x26.5x14.3x11.3xPLAYSTUDIOSNasdaqGM2.32 46%130 307 192 0.7x0.6x0.6x5.0 x3.2x3.0 xQingci GamesSEHK0.56 49%219 383 169

155、1.9x0.6x0.5x12.9x2.9x1.8xTen Square GamesWSE26.53 79%31 193 161 1.3x1.5x1.5x5.0 x6.5x5.6xEG7OM1.48 43%48 131 91 0.5x0.4x0.5x2.0 x1.4x2.0 xG5 EntertainmentOM12.82 58%18 103 86 0.6x0.6x0.7x3.9x2.8x3.2xEast Side GamesTSX0.41 61%3 34 31 0.4x0.5x0.4x9.5x3.4x2.0 xStarbreezeOM0.04 16%35 41 26 2.1x0.4x1.3x4

156、.1x0.6x3.1xSkillzNYSE7.41 43%335 156(41)NMNMNMNM NM NM Top Quartile85%$421$917$839 1.7x1.5x1.5x10.9x6.2x10.3xMean65%350 2,288 2,367 1.6x1.4x1.4x9.7x7.2x7.0 xMedian60%247 522 299 1.2x0.9x0.9x5.1x3.8x4.5xFirst Quartile49%56 166 163 0.7x0.6x0.7x4.2x3.0 x3.1x($in millions,except stock price)EV/RevenueEV

157、/EBITDACompanyExchangeStock Price%of 52-wk HighCash&ST InvEquity ValueEnterprise ValueCY 2022ACY 2023ECY 2024ECY 2022ACY 2023ECY 2024EDoubleDown InteractiveNasdaqGS$10.64 93%$275$527$295 0.9x1.0 x0.9x2.9x2.6x2.6xGungHo OnlineTSE16.29 81%993 1,138 196 0.2x0.2x0.2x0.9x0.9x1.1xTen Square GamesWSE26.53

158、79%31 193 161 1.3x1.5x1.5x5.0 x6.5x5.6xEG7OM1.48 43%48 131 91 0.5x0.4x0.5x2.0 x1.4x2.0 xG5 EntertainmentOM12.82 58%18 103 86 0.6x0.6x0.7x3.9x2.8x3.2xFrontier DevelopmentsAIM1.84 22%22 72 74 0.5x0.6x0.7x1.7x2.4x2.5xMaximum EntertainmentOM0.48 31%7 23 60 0.5x0.5x0.5x6.5x3.6x3.7xDevolver DigitalAIM0.23

159、 51%65 104 39 0.3x0.4x0.4x1.7xNM 4.9xEast Side GamesTSX0.41 61%3 34 31 0.4x0.5x0.4x9.5x3.4x2.0 xStarbreezeOM0.04 16%35 41 26 2.1x0.4x1.3x4.1x0.6x3.1xtinyBuildAIM0.08 10%14 16 17 0.3x0.4x0.3x0.7x3.4x2.9xSkillzNYSE7.41 43%335 156(41)NMNMNMNM NM NM Top Quartile66%$117$165$108 0.8x0.6x0.8x4.6x3.4x3.5xMe

160、an49%154 211 86 0.7x0.6x0.7x3.5x2.8x3.1xMedian47%33 103 67 0.5x0.5x0.5x2.9x2.7x2.9xFirst Quartile29%17 39 30 0.3x0.4x0.4x1.7x1.6x2.3xDisclaimer31 2024 Houlihan Lokey.All rights reserved.This material may not be reproduced in any format by any means or redistributed without the prior written consent

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170、wever,it does not guarantee the accuracy or completeness of the information provided within this presentation.The material presented reflects information known to the authors at the time this presentation was written,and this information is subject to change.Any forward-looking information and state

171、ments contained herein are subject to various risks and uncertainties,many of which are difficult to predict,that could cause actual results and developments to differ materially from those expressed in,or implied or projected by,the forward-looking information and statements.In addition,past perfor

172、mance should not be taken as an indication or guarantee of future performance,and information contained herein may be subject to variation as a result of currency fluctuations.Houlihan Lokey makes no representations or warranties,expressed or implied,regarding the accuracy of this material.The views

173、 expressed in this material accurately reflect the personal views of the authors regarding the subject securities and issuers and do not necessarily coincide with those of Houlihan Lokey.Officers,directors,and partners in the Houlihan Lokey group of companies may have positions in the securities of

174、the companies discussed.This presentation does not constitute advice or a recommendation,offer,or solicitation with respect to the securities of any company discussed herein,is not intended to provide information upon which to base an investment decision,and should not be construed as such.Houlihan

175、Lokey or its affiliates may from time to time provide financial or related services to these companies.Like all Houlihan Lokey employees,the authors of this presentation receive compensation that is affected by overall firm profitability.CORPORATE FINANCE FINANCIAL RESTRUCTURING FINANCIAL AND VALUATION ADVISORYHL.com