Q1 $ 7.8 billion in gaming investments and M&A is the largest quarter since 2023 | DDM

The game manufacturing slogan over the past year was “staying alive until 2025.” In some respects, this was not just a wishful thinking.

The industry was also going through until 2024, a market researcher DDM He saw positive signs. And with the quarter -in -2025 in the books, it seems that things are going in the right direction when it comes to game deals – investments or integration and purchases.

Q1 2025 does not represent the second quarter in a row of growth, but rather the largest quarter since Q4 2023, with joint games investments and M&S by $ 7.8 billion through 245 transactions ( +29 % in value and +1 % in size compared to $ 6.0 billion from Q4 via 243 common investments and mess as).

Q1 2025 Overview

Q1 2025 investments have witnessed a significant increase in value, with a total of $ 4.4 billion in 190 investments (+370 % in value and -8 % in size compared to Q4 $ 945.9 million via 207 investments) recorded 4.7 times in QOQ value and the largest quarter since Q2 2022.

Q1 2025 M & AS has seen a significant decrease in value, with a total of $ 3.3 billion in 55 transactions (-34 % in value and +53 % in size compared to $ 5.1 billion of Q4 via 36 transactions), although there is the largest quarter of a year since 67 % of the farmers.

The quarter witnessed a significant increase in new money ads, with a total of $ 21.8 billion in 43 boxes (+122 % in value and +13 % in size compared to $ 9.8 billion in Q4 via 38 boxes), on the occasion of the largest quarter since Q2 2022; This was QOQ 2.2 -time growth in five collective money that raised more than $ 14.3 (65 % of the raised capital).

“There is no doubt that” staying alive until 2025 “has become a distinctive logo for the game industry during the recent troubled years. While DDM expects the continuous demobilization, investment and investment in guidance,” Mitchell Reefis, Director of DDM Investment Review, said in a statement.

Investment Summary

The total Q1 2025 investments reached $ 4.4 billion in 190 investments (+370 % in value and -8 % in size compared to Q4 $ 945.9 million in 207 investments) that has achieved 4.7 times in value growth in QOQ and the highest value since Q2 2022 at a value of $ 6.1 billion; This achievement can be attributed to unlimited investments of 3.0 billion dollars/late from the pound sterling (67 % of the quarter value).

The company said that the investments of the Q1 2025 games developer amounted to $ 4.0 billion in 103 investments (+457 % in value and -27 % in size compared to $ 720.0 million from Q4 via 141 investments).

Artificial intelligence and Blockchain are still in obtaining an ongoing investor enthusiasm, as the total of artificial intelligence investments in the game industry amounted to $ 3.1 billion in 32 investments (+2,288 % of the value and +14 % in size compared to $ 130.8 million from Q3 via 28 million investments in the industry). 56 investments).

It led the higher value of the value by Tech/Other (86 %), followed by the console/computer (8 %), mobile phone (5 %), MCG* (1 %), Esports (<1 %), AR/VR (<1 %) and browser (<1 %).

The total investment other than the disclosure of Q1 2025 is 93 investments (49 % of the quarter); Using the historical averages to estimate the undeclared investment values, Q1 2025 was $ 4.9 billion (+/– 179.1 million dollars).

M & as

The total M & AS in the quarter reached $ 3.3 billion through 55 transactions (-34 % in value and +53 % in size compared to $ 5.1 billion of Q4 via 36 transactions) to achieve the highest quarterly size since Q4 2022 of 63 transactions; The significant decrease in value is the result of unannounced integration and purchases, as a total of 44 transactions (80 % total size or +13 % higher than the 67 % separation average).

The total Q1 2025 MOMENT MOMENT M & AS was $ 2.1 billion through 26 transactions (+7 % in value and +53 % in size compared to $ 2.0 billion in Q4 via 17 transactions).

It led the highest M&A section by value by Mobile (63 %), followed by the console/computer (36 %), MCG* (1 %), and electronic sports (<1 %).

Asia, Europe and North America led the activity of integration and purchase in terms of value and size, as the total of 1.3 billion dollars reached seven transactions (38 % of the value and 13 % of the size) and Europe reached a total of $ 1.2 billion through 22 transactions (37 % of the value and 40 % of the size); North America contributed 38 % of the total volume of transactions, however, the values ​​of the deal were not revealed.

Exits (M & A + Writings of the Initiation)

Q1 2025 EXITS (M & AS +IPO) reached a total of $ 5.6 billion in 56 transactions (+10 % in value and +44 % in size compared to $ 5.1 billion of its value and 39 in size), which represents a quarter of $ 5.2 million.

The reverse integration of Grand Centrex is the first such a deal since SEMper Fortis Esports $ 15.9 million in the fourth quarter of 2023.

The value of the only public subscription for the first quarter was $ 2.2 billion (+14,038 % of the value and -67 % in size compared to the Q4 $ 15.9 million in the common market markets via 3 of the initial subscriptions).

The highest exit (M & A + subscriptions) led the value of the sector by Tech/Other (40 %), followed by the mobile phone (37 %), the control unit/computer (22 %), MCG* (1 %), and electronic sports (<1 %).

Fund ads

(Note: DDM tracks advertisements from investment capital companies and money on the new capital they raise, which is ultimately published in investments in their reports).

The total funds of the new fund in the first quarter amounted to $ 21.8 billion in 43 boxes (+122 % of the value and +13 % in size compared to Q4 $ 9.8 billion through 38 boxes), which represents the largest quarter of money ads since Q2 2022 at a value of $ 25.1 billion in 40 financing; This growth of 2.2 times in QOQ was driven by five collective funds exceeding 14.3 billion dollars (65 % of the capital raised): Bank of China (6.9 billion dollars), Khosla Ventures ($ 3.5 billion), Thoma Bravo ($ 1.9 billion), Haun Ventures ($ 1.0 billion), and the government from India (1.0 dollar).

It should be noted: All this capital will not be invested in games. Artificial intelligence and Blockchain still arouses great attention from investment capital companies, as the total money targeting artificial intelligence reached $ 5.2 billion in 15 boxes (+128 % of value and +15 % in size compared to $ 2.3 billion of Q4 across 13 boxes) and the total Blockchain 2.1 billion dollars through 8 money (+22 % in value and 43 % in Size compared to Q4 $ 1.7.

Money that focused only on early companies dominating the value and its size, which collects $ 10.9 billion, dominates 28 boxes (50 % of the value and 65 % of the size) with undesirable boxes that are close to collecting 8.8 billion dollars across 13 boxes (40 % of the value and 30 % of the size); Money that focuses only on medium/later companies raised the crowd of $ 2.1 billion through two financing (10 % of the value and 5 % of the size)

*McG Games (MCG) are games that play online. It includes MMOS, Mobas, Battle Royale and Metavers.

methodology

In reporting values, DDM only includes deals when closing investment or acquisition, not simply advertising. This methodology has been constantly used with 17 -year DDM data and ensures that the company measures actual activity instead of potential activity.

In addition, with Spacs, DDM considers that the investment value is what has been raised in the transaction, not the company’s evaluation after that. This is consistent with how DDM tracks investment data, as it tracks the money collected in the transaction, separately, its effect on the total value of the company.

The exclusion of the declared deals may lead to a great difference between the total DDM and other companies, but DDM said that its methodology gives a clearer picture about the money that was published in the last quarter, which provides a valuable consistency of data for companies that evaluate the investment in the game industry and acquire them.