News: Social gaming is "absolutely not" in a bubble
Mind Candy CEO Michael Acton Smith has said that social gaming is “absolutely not” in a bubble, pointing out key differences between companies like Playfish and ones that experienced rapid growth during the dot.com era.
“The reason Club Penguin and Playfish went for such multiples is because they are profitable businesses generating substantial revenue,” said Acton Smith. “I was involved in the first dot.com boom back in the 1990s and companies were valued at crazy amounts on multiples of users. This time it’s multiples of revenue and that is not bubble – that is solid hard fact. So I think we’ve got a long way to go.”
Speaking to Industry.biz at a party held by Mind Candy to celebrate reaching 15 million registered users in its rapidly-growing online kids game Moshi Monsters, Acton Smith added that the virtual goods business in the Far East is turning over more than $5 billion annually, with the biggest online gaming company there valued at several billion dollars.
<a href="http://www.industry.biz/articles/mind-candy-social-gaming-is-absolutely-not-in-a-bubble”>
Read more…
Recent Comments