Market analysis companies say that as the gaming industry develops from “survival to 25”, the 2024 game investment and mergers and acquisitions data reveal recovery and improvement. Digital Development Management (DDM).
To correctly compare 2024 to 2023, it is important to remember that in the 4th quarter, Microsoft acquired Activision Blizzard for $68.7 billion, more than 5.4 times the largest gaming acquisition in history , its closest Take-Take-Two Interactive acquired Zynga for $12.7 billion.
Microsoft’s acquisition as outliers was canceled in 2024, with a total of $17.5 billion in total investments and M&As in 985, value +39%, quantity +16%, while $202.3 billion in 848 investments and M&As $12.6 billion. This is particularly evident through a total of 2024.
DDM is the latest party to report game deals in 2024. Other data have come from Konvoy Ventures,,,,, Drake Star Partnerand Quantum Technology Partners. One thing that is unique about DDM is that it has a 2025 forecast.
“Although the gaming industry has already achieved with ‘Survive til’25’, the outlook for DDM is still cautiously optimistic. However, there is certainly no expectation for the gaming industry to suffer more layoffs, from internal game development to external pivots and Split of non-core business products,” said Mitchell Reavis, manager of DDM Games. Investment review, in a statement.
The gaming industry’s 2024 investment totaled $7.7 billion in 812 investments (value +68%, in 2023 investments, quantity +18%), indicating that the volume recovered from a record high of 1,001 investments in 2022 point.
and 2024 merger deals totaled $9.9 billion, with a value of +22% and a quantity of +10%, compared to $8.1 billion in 2023 of 157 deals (excluding Microsoft’s acquisition of Activision Blizzard $687.7 billion USD, as a transcendent).
and 2024’s new fund announcement totaled $58.9 billion, new capital raised in 132 funds (value +25%, quantity +7%, compared to 2023’s $47.2 billion and $47.2 billion in 123 funds)
Although $6 billion of 236 investments and mergers in the fourth quarter was the same as the biggest quarter of 2024, the high-priced mergers and acquisitions in the fourth quarter obscured the return of investment value:
DDM says investment value drops sharply in 2024 in the fourth quarter – $906.2 million (value-35% and batch-+4% in 201 investments, while $1.4 billion and 193 investments in the third quarter marked the lowest value since the third quarter of 2018 ($650.6 million). ). The number is still strong as the fourth quarter is +7% compared to the 2-year average of 187 investments. The value of the investment is weakened from early-stage investments that represent the majority (66%)
Meanwhile, the value of 2024 M&As increased significantly in the fourth quarter – $5 billion in 35 transactions (value +572%, quantity +572%, compared to $751.1 million in the third quarter, 7.511 in 50 transactions $1 billion) allows Q4 to exceed $4.8 billion in combined value acquisitions in Q1-Q3; this is through EQT Group and others’ $2.7 billion acquisition of Keyword Studios and Playtika’s $2 billion acquisition of SuperPlay (accounting for total M&A 94% of the value) to achieve.
Although gaming investment slows down as the years develop, it is hoped to develop more stably in 2025.
DDM said that despite investors being more cautious, top gaming giants and publishers include Hasbro, Crafton, my..games, nazara Technologies, and said Games all announced that cash reserves will be invested in games.
In the second half of 2024, M&A total of $5.8 billion as 85 transactions (value +43% and quantity -3%), compared with $4.1 billion in H1 2024 in 88 transactions). In 2025, Miniclip’s $1.2 billion Easy Brain, MTG’s $820 million acquisition of Plarium, and the giant company with huge attention this year.
In 2024, private equity firms snapped up some of the big game studios, including Keyword Studios, Jagex and Kahoot. DDM said private equity firms will continue to generate interest on large game M&A transactions if interest rates are lowered.
“DDM forecast studio and gaming financing will gradually grow in 2025 as many companies ended their fiscal year in March and relaxed their wallets for gaming and strategic investments in 2026/2027,” Reavis said. “In addition, the DDM forecast is based on the , with the increase in artificial intelligence and blockchain, activity will increase slightly throughout 2025.”
invest
The total investment in 2024 in the fourth quarter was US$906.2 million (value-35%, quantity +4%, while the investment in the third quarter of US$1.4 billion and US$193 were recorded since 2018. The lowest value of the quarter since the third quarter of 2018 was $650.6 million; although the investment value was suppressed from early-stage investments representing the majority of early-stage investments (66%), the number remains strong as the fourth quarter was more than 187 investments the two-year quarterly average is +7%.
Game developer investments totaled $679.5 million in 134 investments in Q4 (valued at -39% and quantity at -4%, compared to $1.1B in Q3’s $1.1B in 140 investments) .
The game industry blockchain investment in the fourth quarter in 2024 totaled 54 investments (value -70%, quantity -70%, quantity -17%, compared with US$607.7 million and 65 investments in the third quarter), while the game industry AI investments totaled $120.7 million ($120.7 million in 26 investments) and 30% of the amount, compared to $17.2 million in the third quarter of $200,000 investment).
The highest segment led by mobile devices (43%), followed by console/PC (26%), MCG* (14%), Tech/Others (10%), AR/VR (3%), Esports (3 %) and browser (2%).
Using historical averages to estimate undisclosed investment value, it reached $1.3 billion in 2024 in the fourth quarter [+/- $120.0 million].
Merger and Acquisition Transactions
The fourth quarter was 2024 M&, with a total of 35 transactions (value +566%, quantity +566%, value of -30% in 50 transactions compared to the third quarter’s $751.1 million deals), surpassing the Q1 – Q3’s $4.8 billion combined value is $4.8 billion; EQT Groups and others’ $2.7 billion acquisition of Keyword Studios and Playtika’s $2 billion acquisition of Super Games (94% of the total M&A value) US dollar acquisitions (94% of the total M&A value).
Game developer M&S& in 2024 totaled $2 billion in 27 transactions (value +41% and volume -47% compared to 32 of $1.4 billion in the third quarter).
According to Tech/Others (60%), the highest M&A sector is led by Mobile (40%), Esports (<1%) and Console/PC (<1%).
Europe and Asia are the most active regions in M&A value and quantity, with Europe totaling US$2.7 billion in 13 transactions (57% of the value and 37% of the volume), and Asia totaling 4 transactions (40% of the value and 11 ), totaling $2 billion in volume).
Exit (M&A and IPO)
Q4 2024 Q4 (M&AS + IPO) totaled 38 transactions (value + 33%, volume + 33% and -30% valued at $3.8 billion, valued at $54); although Q4 records from The lowest export volume since 2023’s 36 exports in the second quarter, but exports in the fourth quarter still reached the highest export value in 2024.
The total market capitalization of the IPO in the fourth quarter of 2024 totaled $15.9 million in three IPOs (valued at -99% and quantity at -25%, while $3 billion in four IPOs was -3 billion).
Poland continues to provide the gaming industry with a stable rate of quarterly IPOs, with the third quarter being 42024 (100% of the number); all of which are PC game developers, including DarkPoint Games ($9.2 million in market capitalization), G- DEVS ($1.8 million in market cap) and Madnetic Games ($4.9 million in market cap).
The highest exports by segment value (M&A + IPO) are led by Tech/Others (60%), followed by mobile devices (40%), console/PC (<1%) and esports (<1%).
Fund Announcement
DDM tracks announcements from venture capital firms, as well as funds about the new capital they raise, eventually deployed in the investments in their reports.
The fourth quarter 2024 new fund announcements totaled 36 funds (value -21%, quantity -21%, quantity +33%), while the 32024 quarter $12.4 billion was US$12.4 billion out of 27 funds); The funding was jointly raised by three funds (51% of capital raised): Founders’ Fund ($3 billion), Jacket Management ($1 billion) and General CATALYST ($1 billion).
Artificial intelligence and blockchain continue to earn interest from venture capital firms as funds targeting AI totaled $1.2 billion (valued -77% and quantity of -77% and quantity of 72% compared to 2024’s 7.8 billion USD, totaling USD 7.7 billion), total blockchain amount is USD 17.7 billion, totaling USD 13 funds (value +13%, sales +44%, compared to USD 1.5 billion in the third quarter) .
New fund announcements are focused only on 75% of early-stage companies in the 4th quarter 2024 fund announcements; however, the allocation of funds by value is more balanced, with early-stage funds raising $3.4 billion in 27 funds (divided into 35%) , the mid-/late fund raised $3.1B, more than 3 funds (divided into 31%) and stages – The out-of-time fund raised $3.3 billion (worth 34%) in six funds.
*Mass Community Games (MCG) is a game powered by online community games. Including MMO, MOBAS, BATTY ROYALE and METAVERSE games.
In the reported value, DDM includes only the transaction in the event of an acquisition or acquisition ends, rather than simply announcing. The method has been used in line with the data for 17 years and ensures that DDM measures actual activity rather than potential activity.
Additionally, DDM said it believes that the investment value is the investment value proposed in the transaction, not the company’s valuation. This is consistent with how it tracks investment data, where DDM tracks funds raised in transactions and individually tracks its impact on the company’s overall corporate value.
DDM said excluding the announced deal could cause a big difference between DDM’s quarterly total and other companies, but the approach has a clearer understanding of the companies evaluating investments and acquisitions in the gaming industry, DDM said. valuable data consistency. .
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