FinancialAream & Co
Video Game Market Update: Q2 2025
31 Mar 202534 pages~18 min full read
The video game market is shifting toward a differentiated growth model where mobile spending has stabilized at $20 billion per quarter, while PC and console segments show renewed vigor.
See it on page 6Steam revenue grew 20% year-on-year, and console performance remains strong with the record-breaking launch of the Nintendo Switch 2 and PlayStation reaching 120 million monthly active users.
See it on page 11M&A activity totaled $6.2 billion in Q2 2025, while private equity and late-stage venture capital inflows dropped to a five-year low of $0.4 billion.
See it on page 7Valuation spreads have diverged significantly, with PC and console firms trading at over 15 times EBITDA, while mobile-focused companies are currently at historic valuation lows.
See it on page 6User-generated content platforms remain dominant, with Fortnite and Roblox sustaining 16 million and 14 million concurrent users respectively, and creator payouts rising 25% year-on-year.
See it on page 13Financing trends show a shift toward non-dilutive capital, with debt providers now funding approximately 80% of user-acquisition costs.
See it on page 32AI-infrastructure startups dominated the investment landscape, accounting for 65% of all deals related to gaming technology.
See it on page 32The update delivers a comprehensive snapshot of the global video‑game ecosystem in the second quarter of 2025, emphasizing financial flows, consumer behavior and platform performance. It argues that the market is transitioning from pandemic‑driven expansion to a more differentiated growth pattern, with mobile spending stabilising at roughly $20 billion per quarter, while PC and console segments experience renewed vigor.
Quarterly consumer spend on mobile games remains flat, yet download volumes have slipped, contrasting with a 20 % year‑on‑year rise in Steam revenue powered by several high‑profile indie releases. Console dynamics are buoyant: Nintendo’s Switch 2 set a record launch pace, and PlayStation reported over 120 million monthly active users, marking its most profitable hardware cycle. M&A activity reached $6.2 billion, led by the Niantic sale and a private‑equity round in Dream Games, whereas private‑equity and late‑stage venture capital inflows fell to a five‑year low of $0.4 billion. Public offerings generated $4.2 billion, with equities trading near 52‑week highs; valuation spreads have widened, as PC/console firms trade above 15 times EBITDA while mobile peers sit at historic lows.
User engagement metrics show Fortnite sustaining 16 million concurrent users and Roblox 14 million, with Twitch delivering 2.2 billion hours watched. Creator payouts rose 25 % year‑on‑year, driven by major acquisitions in the UGC space. Financing trends reveal AI‑infrastructure startups accounting for 65 % of related deals, and debt providers now fund roughly 80 % of user‑acquisition capital, reflecting a shift toward non‑dilutive growth financing. The analysis draws on data from InvestGame, Sensor Tower, Alinea Analytics and company earnings, covering the period from 2020 through Q2 2025 across North America, Europe and Asia‑Pacific.
