ReportDrake Star Partners
Drake Star Global Gaming Report Q3 2022
1 Sept 202222 pages~40 min full read
The global gaming industry recorded $123 billion in deal value across 976 transactions during the first nine months of 2022.
See it on page 5Blockchain and Web3 gaming dominated private investment in Q3 2022, accounting for 40% of all deal rounds and nearly half of total private financing value.
See it on page 3Public market volatility has significantly impacted valuations, with major entities like Ubisoft and Roblox experiencing stock declines exceeding 45% since early 2021.
See it on page 3Strategic consolidation is accelerating as major players like Microsoft, Tencent, and Savvy Games Group leverage lower public valuations to acquire mid-sized companies and pursue take-private events.
See it on page 19Venture capital remains concentrated among top-tier firms such as Andreessen Horowitz and Animoca Brands, highlighted by a $2 billion funding round for Epic Games and $4.5 billion raised for crypto gaming funds in May 2022.
See it on page 13Industry growth in regions like Southeast Asia and India is currently tempered by negative EBITDA margins, driving a strategic shift toward profitability and structural realignment.
See it on page 16The global gaming industry experienced a year of unprecedented transaction volume through the first nine months of 2022, reaching a total disclosed deal value of $123 billion across 976 transactions. While a record-breaking first quarter gave way to a macroeconomic slowdown, the third quarter demonstrated resilience through a resurgence in activity, including 81 announced mergers and acquisitions and 216 private financings. This period was defined by a stark contrast between robust private investment and significant public market volatility, where major entities like Ubisoft and Roblox saw stock valuations decline by more than 45% since early 2021.
Blockchain and Web3 gaming emerged as the primary catalysts for private capital, accounting for nearly half of all private financing value and 40% of total deal rounds in the third quarter. Significant capital infusions, such as Epic Games’ $2 billion round and the $4.5 billion raised for dedicated crypto gaming funds in May 2022, underscore the sector's shift toward decentralized models and "free-to-own" mechanics. Venture capital activity remained concentrated among top-tier firms like Andreessen Horowitz and Animoca Brands, even as the broader public market faced contraction and a quiet IPO landscape.
Strategic consolidation remains a dominant trend as major players like Microsoft, Tencent, and Savvy Games Group leverage lower public valuations to pursue mid-sized acquisitions and take-private events. This shift toward consolidation is increasingly driven by a necessity for profitability and margin maintenance, particularly in high-growth regions like Southeast Asia and India, where strong revenue growth has been offset by negative EBITDA margins. Moving forward, the industry appears positioned for continued structural realignment as strategic buyers capitalize on market corrections to secure long-term intellectual property and technological infrastructure.
