Let the Games Begin!

THE BOTTOM LINE

Tyton Partners analysis indicates that this year’s game-based learning investments will grow by more than 20% over last year. What is game-based learning, and what investment potential does it offer?

INVESTORS ARE PLAYING GAMES

Since 2013, more than 300 investment deals with an estimated value of $3.5 billion involved companies that rely on either gaming or game-making techniques to engage young learners.

Standouts like Microsoft’s $2.5 billion acquisition of Mojang (creator of Minecraft), Chinese gaming company NetDragon’s $52 million capital raise, and Spin Master’s recent purchase of children’s mobile app maker Toca Boca are strong indicators that investors are taking notice of the potential for this market at a time when educators are increasingly experimenting with game-based learning.

WHAT IS GAME-BASED LEARNING?

In any great game, players are naturally motivated to achieve a goal by making choices and experiencing their consequences. A growing group of educators and researchers believe that games and other forms of playful digital media are poised to play a transformational role in how we learn, both at home and at school.

Game-based learning models offer several important benefits:

•    High levels of engagement
•    Built-in assessment activities
•    Ability to be played alone or with / among a group of participants
•    Opportunities to be personalized and customized
•    Experiences that bridge home and school

Companies that operate in this market may rely exclusively on games to drive learning, use gaming techniques – such as interactive characters or badges – to improve engagement in more traditional applications, or develop software that allows young people to build their own interactive media.

WHAT IS THE POTENTIAL?

More teachers are using games in the classroom, and more adults who grew up playing games are becoming parents.  Combined with increasing global sales of mobile games and a growing body of supporting research, game-based learning companies represent a promising market for investors and innovative models for traditional educational content and assessment providers.

Set up a meeting with a member of our team to learn more about the potential for game-based learning in both formal and informal education environments.