Global Gaming Report Q2 2023

The second quarter of 2023 marked a significant recovery in gaming merger and acquisition (M&A) activity, characterized by a substantial increase in deal value compared to the previous quarter. Total disclosed M&A value exceeded $6 billion, driven largely by high-profile transactions such as Savvy Gaming Group’s $4.9 billion acquisition of Scopely and Sega’s $775 million purchase of Rovio. Other prominent strategic buyers included Sony, Keywords Studios, and Focus Entertainment. While M&A activity surged, private financing experienced a slight decline with 196 announced deals totaling approximately $700 million. Notably, over 80% of these financings targeted early-stage companies, with blockchain-related investments seeing a quarter-over-quarter uptick to 52 deals.

Public markets demonstrated continued resilience as the Drake Star Gaming Index rose 15% during the first half of the year. This recovery has prompted several IPO-ready companies to re-evaluate going public, while simultaneously attracting interest from private equity firms looking for take-private opportunities. Despite a large pool of available capital raised in the previous year, venture capitalists remained cautious, focusing primarily on early-stage rounds. BITKRAFT Ventures, Andreessen Horowitz, and Griffin Gaming led the venture capital league tables for the first half of the year.

The analysis covers global markets across North America, Europe, and Asia, segmenting the industry into mobile, PC/console, esports, and blockchain gaming. Data was compiled using sources such as CapIQ, Pitchbook, and proprietary research. Looking ahead to the remainder of 2023, the outlook remains positive following the U.S. court ruling in favor of the Microsoft/Activision deal and continued aggressive acquisition strategies from major players like Savvy Gaming Group. Artificial intelligence and development tools are expected to remain high-interest segments for investors through the second half of the year.