Games Industry Venture Capital Plummets

Thanks to ElectricNews.net for a synopsis discussing the difficulty of raising venture capital for the games industry. They reference a Wall Street Journal article mentioning that only USD37 million was invested in games-related firms in the US in 2002, down from USD66.9 million the year before and a peak of USD295.3 million in 1999. According to the article, apart from the wider downturn in VC activity since the late 1990s: "'Historically, in the games business, a lot of companies really succeeded by hitting it big with one blockbuster,' says Jon Callaghan, managing director at Globespan Capital Partners. 'As a VC, it's very hard to invest in that.'"

Re:Some connections need to be made here

[Anonymous Coward]

LOL. you tell him!

stupid kids...

When I go pass the apartment on my bottom floor and the drunken jocks invite me in for a game of Madden on their X-box or PS2, I find it hard to believe the number of gamers is shrinking.