European video games

The re-emergence of a listed small- and mid-cap games sector across Europe owes much to the disruption from digital distribution, GaaS and the implementation of more capital light, recurring monetisation models. Over the next few years, increasing investment in next-generation consoles, streaming, subscription, eSports and VR/AR will lead to a proliferation of routes to market for IP, and these drivers look set to support industry growth for the next 10 years. The dynamic nature of the market will continue to create disruption, rewarding agile development but challenging legacy business models. This offers opportunities (particularly to IP owners) as well as risks, but we believe that the small- and mid-cap European sector now offers exposure to well-run, innovative businesses that will benefit from the continuing growth of the digital model.

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