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Last year presented a challenging chapter for deal-making in the gaming sector, as revealed in our Global Gaming Deals Activity Report for FY '23 report. The pace of closed deals significantly waned, with a striking decline exceeding 50% in both deal count and investment volume, diverging from the surging activity of 2020-2022.
Although M&A activities decreased in 2023, with the total value of deals settling at approximately $9.5B, excluding the Microsoft-Activision deal, positive signs are pointing towards a more vibrant M&A environment for the future, contingent on macroeconomic stabilization. Please check our Global Gaming Deals Activity Report for FY '23 to find more.
Public offerings saw a moderate recovery in 2023, according to our Global Gaming Deals Activity Report for FY'23, indicating a possible resurgence if market conditions improve, with a growth in value of about 16% year-on-year and deal count increased by 87%.
— Jagex, a UK-based games publisher and developer, has been acquired by private equity and investment advisory firms CVC Capital Partners and Haveli Investments for a rumored sum of $1.1B;
— Kadokawa Corporation, a Japan-based media conglomerate, has acquired ACQUIRE, the developer behind the Octopath Traveler series, for an undisclosed sum;
— Epic Games, a US-based gaming company, has raised a $1.5B investment from The Walt Disney Company.

Those three, along with seven more deals, were covered in our latest Weekly News Digest.
Our Global Gaming Deals Activity Report for FY '23 shows that over 30 new Early-stage gaming funds have appeared since 2020. Despite challenges such as inflated rounds, the gaming market remains attractive to investors, with competition leading to size increases of average funding rounds from $16m in 2020 to $21m in 2021 before stabilizing around $13m in 2023.
Our colleagues from GameDev Reports picked the most exciting gaming reports from the previous week, covering the gaming audiences on Steam and PlayStation in 2024, the IP landscape in mobile games, and PC & console game sales in Europe in Jan'24:

— GameDiscoverCo: Where Steam and PlayStation audiences are in 2024;
— Sensor Tower: IP in Games Landscape Report;
— GSD & GfK: PC & console game sales in Europe in Jan'24 decreased by 7%.

A weekly recap with a brief overview of the mentioned reports is available here.
Late-stage gaming companies faced challenges due to macroeconomic factors, leading to a downturn in activities. The total deal value in late-stage gaming decreased significantly, from $6.7B in the 2020-21 period to just $1.2B in the following years. You can find more details regarding Private Investment activity in our Global Gaming Deals Activity Report for FY '23.
There's been a shift from solo investments towards co-investments in early-stage deals, aiming to mitigate risks and potentially open opportunities for M&A activities. Despite a notable decline in deal value in 2023, the deal count remains close to that of 2022, according to our Global Gaming Deals Activity Report for FY '23.
There was a decline in Platform & Tech deal volumes as investors focused on profitability and short-term outcomes. AI startups grew as per our Global Gaming Deals Activity Report for FY '23. However, the number of AI-related tech startups increased, with 29 out of 82 Platform & Tech deals related to AI. Blockchain in gaming has become a more niche market after the investment boom, but it remains alive, with deal values in 2023 still 19.5 times higher than in 2020.
— Infinite Reality, a US-based web3 metaverse experience company, has acquired Ethereal Engine, a US-based tech company, for $75m, paid entirely in shares;
— Overworld, a US-based web3 game developer, has raised $10m in a Seed funding round;
— Aghanim, a US-based tech company, has attracted an undisclosed sum for entering the direct-to-consumer market.

These deals were covered in our latest Weekly News Digest.
Our colleagues from GameDev Reports picked the most exciting gaming reports from the previous week, covering the current state of the mobile gaming market and the results of Steam and Epic Games Store in 2023:

— Apptica: The State of the Mobile Gaming Market and Advertising;
— Steam: 2023 Results;
— Epic Games Store: Results of 2023.

A weekly recap with a brief overview of the mentioned reports is available here.
— Monumental, a US-based multiplatform games developer and publisher, has acquired Game Circus, a US-based mobile games developer primarily known for its social casino game Coin Dozer series;
— GameCentric, an India-based gaming platform, has raised $1.5m in an angel round led by Bilal Merchant;
— Crystal Fun, a UAE-based web3 gaming ecosystem and games developer, has raised an undisclosed sum from KuCoin Ventures.

These three deals and one more were covered in our latest Weekly News Digest.
Our colleagues from GameDev Reports picked the most exciting gaming reports from the previous week, covering the growth of the US gaming market in Jan'24, the state of the mobile gaming market in the year 2024, and the gaming market's status in MENAP regions, along with global insights for Q4'23:

— Circana: The US gaming market in January 2024 grew by 15%;
data.ai: Mobile Gaming Market in 2024;
— Shorooq Partners: State of the Gaming Market in MENAP and globally in Q4 2023.

A weekly recap with a brief overview of the mentioned reports is available here.
— Embracer Group, a Sweden-based gaming conglomerate, is reportedly selling its subsidiary Saber Interactive, a US-incorporated PC & Console games developer, for $500m;
— The Collective Ace Group, a Germany-based gaming company, has acquired By Aliens, a UAE-based mobile games developer and publisher, for an undisclosed amount;
Scuti.AI, a US-based game tech platform, has attracted $10m in a Series A funding round from an undisclosed investor.

These three deals, along with six others, were covered in our latest Weekly News Digest.
Our colleagues from GameDev Reports picked the most exciting gaming reports from the previous week, covering total spending on physical gaming products in Japan in 2023, the possible growth of the Middle East and North Africa gaming market, and the top mobile games of Feb'24 based on revenue and downloads:

— Famitsu: $2.7 billion was spent on physical gaming products in Japan in 2023;
— Niko Partners: MENA-3 is expected to reach revenue of $2.65B by 2027;
— AppMagic: Top Mobile games of Feb'24 by Revenue and Downloads.

A weekly recap with a brief overview of the mentioned reports is available here.
The InvestGame team is extremely excited to congratulate GameDev Reports channel on hitting 5,000 subscribers! 🎉 Dima, your dedication to sharing and analyzing gamedev reports has truly paid off — it's awesome to see such a passionate and engaged community grow around your content. Here's to many more milestones and continued success. Keep rocking the gamedev world!

Cheers,
Your fans from the InvestGame crew.
Our colleagues from GameDev Reports picked the most exciting gaming reports from the previous week, covering salary statistics in game development, the state of mobile casual gaming, and global mobile gaming marketing trends in 2023:

— 80 Level: 45.6% of the game industry workers are living from a paycheck to a paycheck;
— AppMagic: Lessons from 2023 for casual games;
— SocialPeta: Trends in Mobile Gaming Marketing in 2023.

A weekly recap with a brief overview of the mentioned reports is available here.
— Embracer Group, a Sweden-based gaming holding company, has sold Saber Interactive, a developer of PC and console games, for $247m to Beacon Interactive;
— Turtle Beach, a US-based gaming peripherals company, is set to acquire PDP, a US-based creator of console controllers, for $118m;
— Kaedim, a US-based game tech company, has raised $15m in a Series A funding round led by a16z, with participation from Pioneer Fund and other investors.

These three deals, along with 18 others, were covered in our latest Weekly News Digest.
The InvestGame team is thrilled to unveil our exclusive Global M&A Sell-Side Financial Advisory League Table for 2020-2024 YTD. This comprehensive data showcases premier financial advisory firms that have played pivotal roles in orchestrating transformative deals within the gaming industry during these fluctuating times. Tailored for founders and investors, our League Table serves as a definitive compass in the ever-evolving realm of M&A, delivering unparalleled insights drawn from InvestGame’s proprietary database and spotlighting over 60 significant acquisitions.
Our colleagues from GameDev Reports picked the most exciting gaming reports from the previous week, covering critical insights into the European gaming market in Feb'24, mobile gaming market trends for 2023, and revenue from location-based games in Japan and globally:

— GSD & GfK: The European Gaming Market Grew in Feb'24;
— Adjust & AppLovin: Mobile Game Market Trends in 2024;
— Sensor Tower: Japan accounted for nearly 50% of the revenue from geolocation Mobile games in 2023.

A weekly recap with a brief overview of the mentioned reports is available here.
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