Game investment and mergers and acquisitions transactions reach $10.38 billion for the first three quarters of 2023
The gaming industry is experiencing a rebound in its investment sector, with accumulated deal values for this year slightly surpassing those of 2023.
According to the DDM Games Investment Review, gaming industry investments and mergers & acquisitions (M&A) reached $10.38 billion during the first three quarters of 2024, outpacing the $10.36 billion seen over the same timeframe in the previous year.
Focusing on investments, the first three quarters of 2024 already exceed the entire 2023 total; $6.7 billion was infused during these months, up from last year's $4.5 billion.
The period from January to September saw 726 transactions, marking a 16% increase over the 632 recorded from the same period in 2023.
Investments accounted for the majority with 593 deals, an increase of 13% compared to 523 from the previous year.
M&A activities rose by 22% from 109 last year to 133, though their overall monetary value dipped by 46% year-on-year, lacking a significant transaction such as Savvy Games Group's $4.9 billion acquisition of Scopely.
Even with 2024 tracking ahead in total, the third quarter was the lowest so far, with deal values at $2.2 billion through 234 transactions, a decline of 44% in value and 11% in volume compared to Q2.
Investment activities fell sharply quarter-to-quarter, down 54% to $1.4 billion across 186 deals, showing a 15% reduction. Notably, artificial intelligence-related deals surged by 138% to $195.5 million despite a slight decrease in number from 25 to 20.
M&A activity continued a downward trend in value for the third straight quarter, diminishing by 12% to $751 million, although the number of deals improved by 12% to 48.
Despite the downturns, Q3 still saw a greater number of deals than any quarter from the previous year, according to DDM.
"The past couple of years have presented significant challenges for the gaming sector as many peers have shut down, downsized, or adapted to 'survive til 25'," remarked Mitchell Reavis, manager of the DDM Games Investment Review.
"Last quarter, I expressed optimism about forthcoming developments, and that outlook holds as we observe through our clients, network, trade events, and the findings in this report, it is clear that recovery is in motion."
