Video Games and Digital Media : Business Models and Valuation Approaches

Video games are an electronic game that involves interaction with a user interface to generate visual feedback for a player. The typologies range from action games to adventure, role-playing, strategy, or sport games. Digitalization and web channels of fruition are embedded in most business models, making the whole industry intrinsically scalable. Video gaming may bring addiction or compulsive gambling, with ESG consequences that may impact valuation.The analysis of the innovative business model of video game firms is a pre-requisite for its appraisal and embeds scalability options. The evaluation depends on the prioritizing identification of the crucial value drivers. The evaluation metrics are mainly based on expected cash flow and market comparisons