Konvoy this week launched its Gaming Business Report for the primary quarter of 2025, the place it revealed extra details about traits within the business, together with enterprise capital offers and mergers and acquisitions throughout the globe. Based on the report, Konvoy predicts that the video games business can be price $186 billion in 2026, a 4.7% improve year-over-year. It additionally reveals data on the foremost offers within the business, in addition to the results of the escalating detente between the U.S. and China.
The corporate stories that the video games business noticed 43 mergers and acquisition transactions in Q1, with the 2 largest being Scopely’s $3.5 billion acquisition of Niantic’s gaming division, and Fashionable Occasions Group’s $620 million acquisition of Plarium. It additionally notes that there have been 77 VC offers on this quarter — which was a 6% lower from the earlier quarter. Nonetheless, the whole quantity of VC funding was $373 million, which was a 35% improve quarter-over-quarter.
Josh Chapman, Konvoy managing associate, informed GamesBeat in an interview, “In the first quarter of 2025, North America saw 53% of the gaming investment vs Asia which saw only 33% of the total investment capital in the sector. The third runner up is Europe, yet we see almost zero investment or deal activity out of Africa, South America, or Australia. The reason for that is largely due to there not being local investment groups, because there are game companies in those regions but no local capital groups to build up the local deal market. Looking ahead, we are very confident that NA, Asia, and EU will remain the core locations for gaming investment and deal activity.”
One of many different main takeaways from the report issues the U.S.’s ban on Chinese language entities, together with the impact it had on video games similar to Marvel Snap and Conflict of Clans. Konvoy provides that it expects the U.S.’s scrutiny over entities in nations similar to China to extend, and that this has the potential to have a big influence on the business given how China is concerned in gaming. It additionally famous that Ubisoft is the newest gaming entity to just accept cash from a Tencent, a Chinese language conglomerate.
GamesBeat requested Chapman in regards to the tensions between the 2 entities, and he responded, “The tension for US/China revolves around US games requiring a gate-keeper in China and the games out of China having open-entry to the US market. This imbalance, alongside the TikTok tensions, is the source of the trade tensions and how it relates to the gaming industry.”
Konvoy’s full Gaming Business Report contains regional insights and is now out there on the corporate’s web site.
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