The InvestGame team is pleased to present the Q2’24 Global Gaming Deals Report, providing a comprehensive analysis of the current market dynamics within the gaming industry.
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The games industry remains resilient amidst evolving challenges. Ongoing layoffs, studio closures, volatile gaming stock prices, and project cancellations dominate current gaming news headlines.
In Q2 ’24, the industry saw 166 closed deals totaling $4.1B, marking an increase in both deal value and volume. This uptick suggests a gradual recovery from recent lows, reflecting renewed investor confidence and stability returning to the market.
The key contributor to Q2 ’24 was Private Investments, which attracted $1B across 116 rounds, indicating a stabilization phase following post-pandemic growth. M&A activity showed a slight growth in terms of the number of deals, with 37 announcements, while the total amount remained relatively stable at around $0.5B across all deals.
Public Offerings remained calm compared to the COVID-19 period, with few IPO/PIPE and fixed-income announcements. This was due to macroeconomic instability and turbulence in gaming stocks, leading to limited exit options for late-stage investments.
Notable trends include the continued impact of COVID-19, which saw an initial acceleration in deal activity followed by growth, a “hangover” period, and now stabilization. Early-stage VC investments are adapting to new fundraising norms, with stable Seed funding but volatility in Series A rounds. Late-stage VC and PE deals show sluggish activity due to ongoing market headwinds. Corporate VCs have become more strategic and adaptive, reflecting a keen awareness of the evolving market landscape and a commitment to fostering sustainable growth.
The market shows signs of stabilization, highlighted by several successful public offerings, including Shift Up and GameStop. Private equity firms are increasing activity in the M&A field, while Strategic Investors are adapting and optimizing their business models. We anticipate this dynamic to continue with a moderated potential growth compared to 2023.
We would love to thank our dear friends at MY.GAMES for supporting this Report.
