According to Drake Star’s Global Gaming Report for Q1 2024, the gaming industry experienced a robust start to the year, with a notable increase in mergers, acquisitions, and financing deals. In the first quarter alone, there were 47 M&As in the gaming sector, marking the highest number since 2022. Additionally, 188 funding rounds raised a total of $2.4 billion, with Disney’s $1.5 billion investment in Epic Games playing a significant role. While not all deals were specific to mobile, the surge in activity indicates a return to investment growth after a period of decline.

Mobile-specific M&As accounted for 10 of the total, matching the combined number of PC and console M&As. The platforms and tools segment witnessed the most activity, with 12 mergers and acquisitions taking place at the beginning of the year. Drake Star anticipates that M&A activity will continue to increase throughout 2024, highlighting companies like Tencent, Scopely, Take-Two, and Playtika for their purchasing power.

In terms of investments, venture capitalists such as Bitkraft, Andreessen Horowitz, and Griffin Gaming Partners were the most active, making 19, 11, and 9 investments respectively in Q1 2024. On the stock exchanges, companies like Wemade, Take-Two, NetEase, Roblox, and Krafton saw success, with Wemade experiencing a significant spike of 79.4% in the first quarter. However, some gaming giants experienced declines, including Netmarble, Unity, Tencent, and Sega. Square Enix suffered a notable 16% decline, attributed to "extraordinary losses" to be disclosed later in the month.

Despite these setbacks, Drake Star's report characterizes Q1 2024 as a strong start for the gaming industry, with investment growth expected to remain robust. The report anticipates a modest increase in mid/late-stage deals, with segments like AI, mixed reality, platforms, and tools continuing to attract interest. Additionally, there may be a resurgence of IPOs in the near future.

While some companies faced challenges on the stock market, others thrived, such as Capcom, which saw a 15.3% increase fueled by the monumental 20th-anniversary celebration of its Monster Hunter series.

Source: adapted from an article by Aaron Astle, News Editor for PocketGamer.biz.