Startup funding for games down 36%

2009 saw a considerable decrease in venture funding for small videogame companies. Gaming startups raised a total of $600 million for the year, down 36% from last year. While this decrease does not necessarily spell long-term trouble for gaming startups, the industry has clearly been affected by the global financial contraction that has occurred over the last year. Moreover, it seems that a specific subset of game companies have been more successful than most in garnering funding this year – namely, those developers focused on games for social networking websites like Facebook and MySpace. Zynga and Playdom, the companies behind Mafia Wars and Sorority Life, garnered over $220 million in funding for the year. Thus, these two companies received more than a third of the funding allocated to gaming startups for the entire year.