VCs Obsessing Over Mobile Games

Apparently many VCs believe that mobile gaming is a hot sector for investments. The absolute numbers really aren’t that high compared to some other sectors, but it does show that VCs are clearly interested in the space. Of course, it’s not clear that they’ll really find the returns they’re expecting, but with VC cash you tend to see two things happen: (1) lots of money means lots of competition and lots of failed companies, but (2) out of that, some innovative business models will emerge. In other words, the VC cash will eventually be good for end users getting more innovative mobile games — but expect many of these companies receiving funding today to end up flaming out.

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