Gaming IPOs Through the Years: Platform Shifts and Regional Growth Explored
Feature sponsored by $GDEV
The gaming industry has undergone a seismic shift, evolving from a niche hobby into the global entertainment giant it is today, with a total current market cap exceeding $365B and $535B at its peak in 2020 among pure gaming companies that we have covered in this analysis. This growth is evident not only in the investment and M&A sectors but also in the surge of public offerings. Though the market is quiet in 2024, the number of publicly traded gaming companies has multiplied almost five times since 2000. But what is the current state, and how public listings have changed over the years?
In this analysis, we’ll break down the key questions driving the future of gaming IPOs:
— How has the IPO landscape evolved?
— How quickly are gaming startups advancing from inception to IPO?
— Which regions are emerging as global leaders and are falling behind?
— How do different sub-segments, like mobile, PC & сonsole gaming, and diversified platforms perform against one another?
Our analysis covers every gaming company that has gone public since 1960. The focus is exclusively on video game developers and publishers, excluding those in related ecosystem businesses such as AdTech, Esports, Hardware, Outsourcing, or any companies that have significant operations outside of gaming, like Apple, Tencent, or Microsoft.
For a quick overview, check out the PDF with all the essential analysis from the research:
GDEV x InvestGame – Feature #4
This analysis focuses on 87 publicly traded gaming companies — both developers and publishers — that have ever achieved a market capitalization exceeding $100m since their initial public offerings (IPOs). These companies represent various industry players, from established giants like Take-Two Interactive, Electronic Arts, and Nintendo to emerging public peers like Krafton and Roblox.
We’ve published a comprehensive list of all 87 public gaming companies we studied on our Patreon page. This exclusive table includes the data behind all the graphs, making it easier for you to use in presentations and research. Support us and gain access through the link.
IPOs in gaming industries through the years:
Over the past two decades, the video game industry has grown significantly due to technological advancements, global market growth, and mainstream acceptance. Improved graphics and hardware have enhanced game quality, making the new medium more appealing to a broader audience. The rise of smartphones and mobile gaming has made games accessible and brought them to the masses. Plus, high-speed internet and online multiplayer options have turned gaming into a social experience, enabling global interaction. As a result, supported by favorable macroeconomic trends, we saw a rapidly growing number of publicly traded gaming companies.
Between 1991 and 2000, the industry saw 12 gaming companies go public, driven by the rise of home entertainment. The number of IPOs dipped to 6 in 2001 and 2005, likely due to the post-dot-com slowdown.
IPO activity rebounded from 2006-2010 with 12 companies, fueled by technological advances. The 2011-2015 period saw a further jump to 16 IPOs, coinciding with a favorable average FED rate of 0.1% and the growth of mobile gaming.
The highest surge occurred between 2016 and 2020, with 25 IPOs. This growth was fueled by the continuous rise in mobile gaming revenues and increased interest in interactive entertainment, further boosted by the effects of COVID-19 lockdowns. This was followed by a very strong 2021 year which saw 10 new IPOs alone. However, with a bearish market, rising interest rates, and weaker multiples in recent years, IPOs have notably dropped, and we’ve seen only 1 new IPO (Shift Up in Jul-2024) since 2022.
Regional distribution:
The gaming market has grown exponentially since 2000, with publicly traded gaming companies increasing nearly 5x over the past two decades. A notable surge occurred between 2010 and 2020, with public gaming companies growing 2.1x.
Asia dominates the global video game landscape, commanding 46% of all public gaming companies. The region has seen steady growth, starting from just seven companies before 2000 to 36 companies by 2021-2024 YTD. This expansion underscores Asia’s leadership in gaming, driven by its large player base.
Although North America’s growth in public companies has been slower, the region has maintained a substantial share, now accounting for 18% of the total in 2024. The rise in companies from 4 in the early 2000s to 14 more recently.
Europe has also seen significant progress, with a 4.5x increase in public gaming firms, contributing to 35% of the total market by 2024. MENA (Middle East and North Africa) is a relatively new entrant in the public gaming space. Playtika is the first to go public in 2021, signifying emerging interest from this region.
Platform distribution:
The distribution of gaming companies by platform has shifted significantly. Before 2000, PC & Console gaming dominated the market. However, since the introduction of in-app purchases in AppStore in 2009, mobile gaming has claimed a larger share, fueled by the widespread adoption of smartphones and the rise of advanced free-to-play monetization models, which have expanded the industry’s reach to a broader audience. From 2006 onward, the mobile gaming market saw a massive 9.3x expansion, reaching 47% of the total market by 2021-2024 YTD.
Meanwhile, “diversified” companies operating across multiple platforms surged after large PC & Console players expanded into mobile space through acquisitions: Electronic Arts’ acquisition of JAMDAT Mobile in 2006 and Glu Mobile in 2021, Activision Blizzard’s acquisition of King Digital in 2016, and Take-Two Interactive’s acquisition of Zynga in 2022. By 2021-2024, diversified firms accounted for 46% of all public gaming companies, signaling a shift toward multi-platform strategies that drive broader audience engagement.
Market cap distribution:
The gaming industry’s market cap grew steadily, reaching $145B just before the Global Financial Crisis 2007. Despite adding 15 new listings, the market took a substantial hit, bottoming out at $75B post-crisis. From there, it gradually recovered, hitting $122B in 2014, marking a 2x growth since the previous low.
The most notable surge occurred between 2014 and 2020, when the market cap tripled, reaching an all-time high of $535B. This peak was fueled by favorable macro dynamics, stronger financial performance, and a record number of new listings (25) during those five years. However, the market has faced challenges recently, with the total market cap declining by over 30%, settling at $353B by 2023 due to challenging market conditions and public takeovers.
Despite this decline, the global gaming industry remains robust. Asia continues to dominate, contributing significantly to the overall market cap, with the region leading growth trends. North America and Europe have also expanded but at a slower pace.
The average age of gaming companies:
The gaming market is slowly maturing, as the majority of publicly listed companies are older than twenty years. Industry titans like Nintendo, Activision Blizzard, and Electronic Arts are all above 40 years old. These established giants dominate the highest market cap tiers, showcasing their adaptability and continued resilience over decades.
Asian players are generally older (28 years) than their global peers (23 years), with most well-known Asian players, like NetEase and Bandai Namco, being founded around 20-30 years ago. In contrast, western peers are mainly 10-20 years old (e.g. Embracer Group, Stillfront, Zynga, Roblox).
Regarding IPOs, most gaming companies go public between 5 to 12 years after being founded, comprising the largest group of 42 out of 87 companies (~48%). This suggests many firms target public listings after securing significant market traction and validation. However, there is also a longer path to IPO: a notable portion of companies take 9 to 16 years to go public, often influenced by market conditions and the company’s sustainability at the time.
On the other hand, younger companies like Starbreeze or Motorsport have taken a fast-tracked route, going public in under four years. An interesting example is Take-Two Interactive: founded in 1993, the company went public in 1997 raising $6.5m in proceeds.
Conclusions:
Over the past two decades, the gaming industry has experienced exceptional growth, reflected in both the rising number of publicly traded companies and the substantial increase in market capitalization (reaching its peak of $535B in 2020). The industry’s evolution has extended well beyond traditional PC & Console gaming, with mobile platforms and free-to-play models emerging as dominant forces.
A notable trend has been the strategic diversification of business models among public gaming companies, aiming to tap into new market segments and broaden their consumer base.
The number of public gaming companies, including numerous unicorns, remains robust. Asia, in particular, has become a powerhouse in this domain, accounting for 46% of all publicly traded gaming firms. The region has seen its number of public gaming companies rise from 7 in 2000 to 36 by 2024, underscoring its sustained growth trajectory.
While we anticipate a resurgence in public markets with upcoming Western IPOs in the near future, the pace of new listings is expected to be slower than in previous decades, as the industry gradually enters a more mature phase with the foundational groundwork already in place.
