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Financial
Gametech Report: Global & MENAP Outlook Q1 2023
The analysis quantifies the scale and momentum of the worldwide gaming ecosystem while spotlighting the rapid evolution of the MENAP (Middle East, North Africa, and Pakistan) mobile‑gaming sector. Globally, the market is valued at roughly $201 billion, expanding 9 percent year‑over‑year, with PC and console platforms together contributing about 40 percent of total revenue. Mobile gaming dominates the growth narrative, as 2021 recorded 232 billion downloads and $168 billion in consumer spending, underscoring its central role in the industry’s expansion. Within MENAP, mobile adoption has entered a maturation phase. In‑app‑purchase revenue reached $374 million in 2023, and advertising expenditures surged, climbing 33 percent to a level that now represents 247 percent of a prior benchmark, indicating a pronounced shift toward ad‑supported monetisation. These figures illustrate both heightened consumer engagement and an increasingly sophisticated revenue mix in the region. The report also introduces SHFT, Shorooq’s advanced gametech platform, which operationalises a partnership‑investment model designed to accelerate studio growth across MENAP. Since launch, SHFT has assembled a network of 27 partner studios that have delivered approximately 150 titles, while its dedicated gametech fund has allocated about $15 million in financing. The platform delivers comprehensive services—including data‑analytics dashboards, reporting tools, capital provision, and market‑entry assistance—aimed at enhancing commercial outcomes for developers in the region. Collectively, these insights affirm the global market’s robust health, the MENAP region’s accelerating mobile‑gaming trajectory, and the strategic value of integrated gametech solutions in fostering sustainable industry development.
Shorooq PartnersMar 2023
Report
Gaming Industry Report: Q1 2023
The gaming industry experienced a resilient start to 2023, with a projected global market size of $201 billion, representing a 9% year-over-year increase. Public markets showed strength, with gaming-focused exchange-traded funds (ETFs) recording gains between 10% and 23% year-to-date. While private market venture funding saw a total of $761 million across 109 deals in the first quarter, activity remains concentrated in early-stage investments, as late-stage funding has slowed significantly compared to the peak levels of 2021. Geographically, Asia led global venture funding in the first quarter, followed by North America and Europe. Emerging markets such as Africa and South America saw sporadic but notable deal activity, highlighting a broader global interest in gaming infrastructure and content. Major industry players currently hold approximately $48 billion in cash and equivalents, suggesting a stable environment for potential future mergers and acquisitions despite ongoing regulatory scrutiny regarding large-scale consolidation. Key industry trends in early 2023 include the integration of artificial intelligence for asset generation and conversational tools, alongside a strategic shift by major tech firms toward cloud-based gaming infrastructure. Competitive dynamics are evolving as Epic Games introduces self-publishing tools to challenge Steam’s market dominance and integrates user-generated content into its Fortnite ecosystem. Furthermore, platforms like Roblox are successfully expanding their reach by aging up their user demographic. These developments, supported by a robust schedule of global industry conferences, indicate a focus on platform scalability, content diversification, and the optimization of developer tools to sustain long-term growth.
KonvoyApr 2023
Report
Gaming Industry Report: Q4 2023
The global gaming industry reached a market valuation of $184 billion in 2023, representing a modest year-over-year growth of 0.6%. Despite this stability, the sector experienced a significant contraction in investment activity, with venture funding falling 33% quarter-over-quarter in Q4 to $308 million. This decline reflects a broader normalization of capital flows to pre-pandemic levels, as the industry shifts away from the high-growth, speculative environment of 2021 and 2022. Key industry trends in late 2023 were defined by regulatory and operational restructuring. A landmark legal verdict against Google established that its app store practices constituted an illegal monopoly, forcing potential shifts in how developers distribute content and process payments. Simultaneously, major players like ByteDance began retreating from gaming divisions, while the industry at large grappled with approximately 10,500 layoffs. These workforce reductions were driven by a heightened focus on operational efficiency, the prioritization of high-retention projects, and the consolidation of assets following major mergers and acquisitions. Geographically, North America remains the primary hub for venture capital, though the industry maintains a global footprint with significant activity in Asia and Europe. While venture funding and M&A deal volumes have stabilized, public gaming stocks demonstrated resilience, with leading exchange-traded funds outperforming broader market indices by year-end. Looking forward, the industry is projected to maintain a compound annual growth rate of 3.5% through 2029, supported by the continued integration of user-generated content platforms and advancements in developer tools that emphasize productivity and cost-effective scaling.
KonvoyJan 2024
Financial
Gaming Industry Report Q2 2023
The analysis presents a comprehensive snapshot of the global gaming industry in the second quarter of 2023, emphasizing the sector’s continued expansion and shifting investment dynamics. The market is projected to reach $201 billion in 2023, reflecting a 9 % year‑over‑year increase, while public gaming ETFs have risen between 10 % and 30 % since the start of the year, underscoring strong investor confidence. Cash reserves across leading public gaming firms total roughly $45 billion, supporting a robust merger‑and‑acquisition environment. Venture capital activity shows a pronounced contraction, with total gaming VC funding falling to $1.23 billion in Q2 2023—a 38 % decline quarter‑on‑quarter—driven primarily by a 60 % drop in growth‑stage investments. The number of deals fell 22 % to 194, with early‑stage financing in North America down about 60 % and Europe remaining essentially flat. Asia remains the most active region, accounting for the majority of growth‑stage capital, while South America’s activity is concentrated in Brazil and Africa recorded no deals during the period. Data are drawn from CB Insights, Newzoo, public market filings and company disclosures, covering all VC rounds from pre‑seed through late‑stage across 2019‑2023. Strategic developments highlighted include Apple’s launch of the Vision Pro spatial computer, Embracer Group’s restructuring toward first‑party IP, and the near‑completion of Microsoft’s acquisition of Activision Blizzard pending regulatory clearance in the UK, EU and US. Emerging trends point to a new era for user‑generated content, where popular IP will drive platform growth, and the expanding role of generative AI in asset creation, map design and NPC behavior. The report also outlines the 2023 conference calendar and provides a brief profile of Konvoy’s investment focus, assets under management and recent activity in frontier gaming technologies.
KonvoyMar 2023