PE Hub: VCs Game Shy

"Venture firms pulled back on gaming investments in 2006 despite lucrative exits early in the year. Investment dollars dropped nearly 38% in 2006 to $137 million, down from the $219 million invested during 2005, according to data from Thomson Financial (publisher of PEHub.com).
It seems odd there would be a dip in 2006. Especially after VCs scored with the sale of Massive and XFire.
Massive allows advertisers to tap directly into the game play, posting ads within the video games. It raised nearly $18 million in three rounds from DFJ Gotham, Tobat Capital, Newlight Capital, RRE Ventures and NeoCarta Ventures. The purchase price was undisclosed, though an investor in XFire pegged the acquisition at about $150 million. (The Wall Street Journal reported Microsoft paid between $250 million and $400 million.)"