ReportDDM
Console/PC Games Investment Report September 2024
1 Sept 202417 pages~19 min full read
The 2023 fiscal year saw total deal value reach $69.5 billion, a 612% increase driven almost entirely by Microsoft’s $68.7 billion acquisition of Activision Blizzard.
See it on page 6While total deal value surged, the actual number of transactions fell by 25% compared to 2022, and investment volume dropped to $627.8 million across 161 deals.
See it on page 6M&A activity dominated the market with $68.8 billion across 39 deals, accounting for more than 99% of North American M&A value.
See it on page 9IPO activity contracted significantly in 2023, with only six offerings generating $46 million in market capitalization, an 85% decline from the previous year.
See it on page 6Private investment was concentrated in Europe and North America, which contributed 57% ($358.8 million) and 29% ($184.7 million) of investment volume, respectively.
See it on page 9Investors showed a preference for micro-studios with a median of six employees, while strategic acquirers targeted larger teams with a median of 39 employees.
See it on page 9Blockchain-related deals represented 15% of total investment value and 13% of transaction count, exemplified by Mythic Protocol’s $6.5 million seed round.
See it on page 6The analysis presents a comprehensive review of investment and merger‑and‑acquisition activity within the console and PC video‑game sector for the 2023 fiscal year, positioning 2023 as an outlier driven primarily by Microsoft’s $68.7 billion acquisition of Activision Blizzard. Total deal value reached $69.5 billion across 200 transactions, a 612 % increase in value yet a 25 % decline in transaction count compared with 2022, and twice the combined value of the preceding five‑year period (2018‑2022). Investment volume fell to $627.8 million across 161 deals, while M&A volume surged to $68.8 billion in 39 deals, accounting for more than 99 % of North American M&A value. IPO activity contracted sharply, with six offerings generating $46 million in market capitalisation, down 85 % from the prior year.
Geographically, North America and Europe dominated private investment, contributing $184.7 million (29 % of volume) and $358.8 million (57 % of volume) respectively, while Australia and New Zealand saw limited activity aside from a government grant program. Investors favored micro‑studios (median six employees), whereas acquirers targeted slightly larger teams (median 39 employees). Blockchain‑related deals comprised 15 % of investment value but only 13 % of transaction count, highlighted by Mythic Protocol’s $6.5 million seed round.
Methodologically, the review counts only closed transactions, excluding announced deals, and treats SPAC proceeds as the investment amount rather than post‑transaction valuation. Data are drawn from a proprietary, sixteen‑year‑old database that tracks Western‑focused game‑industry deals across development, publishing, and technology, ensuring consistency and comparability across quarters. The findings underscore a market concentrated around a few mega‑deals, with modest activity elsewhere and a clear shift toward larger, strategic acquisitions.
