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Liftoff Report: Mobile Ad Creative Index 2024

The report presents a comprehensive analysis of mobile ad creative performance across four key app verticals—gaming, e‑commerce, finance, and entertainment—for the period January 1 2023 to January 1 2024. Using 602 billion impressions, 49.4 billion clicks, and 144 million installs, the study benchmarks cost‑per‑install (CPI), install‑to‑action (ITA) rates, and day‑7 return on ad spend (ROAS) by ad format (banner, native, interstitial, playable, video). Gaming ads that include video or playable elements achieve over 20‑fold higher install likelihood than banner ads, while native remains the most cost‑effective format at $1.80 CPI on average. In e‑commerce, native and banner ads drive the highest ITA rates (>30 %) and lowest CPAs ($2.57–$3.23), whereas video ads incur higher costs, especially on iOS. Finance apps see the lowest overall CPI ($1.84–$5.93) but exhibit a pronounced platform split, with iOS costs exceeding $5 for most formats; native and video ads outperform others in ITI conversion (up to 16×). Entertainment apps benefit from banner and native formats, with CPI ranging $2.79–$6.00, while video and interstitial ads are markedly more expensive on iOS. Methodologically, the report aggregates data from Liftoff’s Creative Studio and GameRefinery teams, supplemented by a survey of over 500 app marketers. It highlights emerging creative trends: generative AI for rapid asset creation, optimized user‑generated content (UGC) with interactive elements, minigames and leaderboards for gaming acquisition, and longer immersive ad formats (45‑second videos and triple‑page ads) that drive higher engagement. The findings underscore the importance of platform‑specific optimization, format selection based on vertical and performance goals, and leveraging AI tools to scale creative production while maintaining authenticity.

in-game-advertising advertising marketing+2

LiftoffJan 2024

Financial

Q1’24 Gaming Deals Report

The first quarter of 2024 presents a gaming sector still contending with macro‑economic headwinds, as growth rates trail inflation and firms grapple with widespread layoffs and volatile equity markets. Despite these pressures, deal flow is projected to recover to levels seen before the pandemic, driven primarily by cash‑rich public owners who are now favoring syndicate‑style financing structures and targeting mid‑cap merger‑and‑acquisition opportunities. This shift signals a renewed appetite for strategic consolidation even as overall market confidence remains tentative. Mobile gaming, the largest revenue generator within the industry, shows a modest contraction in the current year. Average in‑app‑purchase earnings have settled between $6.3 billion and $6.4 billion, indicating a slight dip from prior periods. The data suggest that while the segment is experiencing a short‑term slowdown, the underlying user base and monetisation mechanisms remain robust, providing a foundation for potential rebound later in the year. Geographically, the analysis spans the global market, encompassing North America, Europe, and the Asia‑Pacific regions, and focuses on the period from January through March 2024. It covers the full spectrum of interactive entertainment, with particular emphasis on mobile platforms, public‑company investors, and mid‑cap entities engaged in M&A activity. The overarching conclusion is that, although growth momentum is muted, the infusion of capital from well‑funded owners and the persistence of core revenue streams position the industry for a gradual return to pre‑pandemic transaction volumes and a possible stabilization of mobile revenues in the ensuing quarters.

market-analysis mergers-acquisitions investment+1

InvestGameJan 2024

Report

Q1'24 Gaming Deals Report

The Q1 '24 Gaming Deals Report demonstrates a market that is gradually stabilizing after a turbulent “hangover” year. Private investment activity has rebounded, rising 30 % above Q1 '23 levels largely due to sizeable corporate rounds such as Epic Games’ $1.5 B transaction. M&A activity remains steady at roughly 24 deals per quarter, driven by mid‑cap and private‑equity led transactions like Scopely ($4.9 B) and Jagex ($1.1 B). Initial public offerings remain muted, constrained by high interest rates and weak post‑IPO performance. Early‑stage venture capital remains robust in seed rounds but shows signs of slowing at Series A, with investors adopting more syndicate structures and protective terms as capital supply improves. Late‑stage rounds (Series B+) have experienced a 30–40 % decline in both deal count and capital raised since H2 '22, reflecting tighter exit prospects amid limited IPO windows and volatile M&A activity. Smaller rounds have rebounded to pre‑pandemic levels, averaging three deals per quarter and $1.7 B in total capital, while large ($100 M+) rounds remain scarce at only two to three per six months. Expectations of lower interest rates and a recovering equity/M&A market suggest modest growth in capital raised and late‑stage round volume for Q2 '24. Mobile‑gaming deals have slowed sharply, with M&A activity falling to its lowest level since 2020 and VC/PE funding for mobile studios dropping by more than half compared to the previous year. Investors are reallocating capital toward PC and console titles, which attracted roughly $0.5 B in 2023 versus only $0.3 B for mobile, and the success rate of new mobile IPs remains below 3 % (only 2.5 % of titles hit $100k/month in IAP). The market is expected to recover by 2025, but the current environment remains highly risk‑averse and competitive.

market-analysis market-forecast global

InvestGameJan 2024

Report

Save Point 2024: Recapping the Year’s Biggest Trends on Live Streaming

The report demonstrates that live‑streaming in 2024 expanded at an unprecedented pace, driven by new entrants such as Kick, Chzzk, and SOOP Korea. Record viewership totals—Kick’s 1.7 billion hours watched, a 176 % increase from the previous year—illustrate how simulcasting and cross‑platform distribution have amplified audience reach, with top creators reporting concurrent viewership rises of up to 491 %. High‑profile streamers like Kai Cenat and IShowSpeed dominated the charts, each surpassing 47 million hours watched and earning marquee awards for marathon‑style broadcasts. Virtual personalities and genre‑specific content emerged as key growth vectors. VTubers, notably Kuzuha with 35 million hours, and English‑speaking channels amassed 294 million hours collectively. RPG titles such as *Elden Ring* (293 M) and new releases like *Path of Exile* (85 M) attracted the largest game‑specific audiences. Mobile esports also surged, with *Mobile Legends: Bang Bang* generating 340 M hours and co‑streamers accounting for roughly 44 % of total esports viewership, underscoring the expanding role of streamers in event coverage. Legacy creators continued to orchestrate high‑impact events. Ibai’s “La Velada del Año” peaked at 3.8 million viewers, inspiring imitators such as WestCOL’s Stream Fighters 3 (1.4 M peak). Veteran hosts—Junichi Kato, Rubius, Ludwig—collectively drew millions of viewers. Twitch’s monthly subscriber growth (≈16 M new subs) and significant viewership lifts from platform‑driven drops, exemplified by Hunt: Showdown’s 454 % increase, confirm that both creator‑led spectacles and platform incentives remain potent drivers of record viewership spikes across gaming, politics, sports, and music. Across both gaming and non‑gaming domains, live‑streaming sustained high engagement. RPGs like *Elden Ring: Shadow of the Erdtree* and *Dragon’s Dogma 2* dominated, with the latter reaching 19 million hours watched. Nostalgia‑driven remakes (*Silent Hill 2*, *Paper Mario*) and transmedia tie‑ins (e.g., *Fallout* TV premiere, *Diablo 4* DLC) produced notable traffic surges. The esports sector also expanded, highlighted by the Esports World Cup’s subscriber record and mobile titles such as *Brawl Stars* generating 961 k hours in a single day, reinforcing live‑streaming’s centrality for both traditional and emerging game formats.

streaming market-analysis global+1

Stream HatchetJan 2024

Report

Perforce 2024 State of Game Technology Report

The report demonstrates that real‑time 3D engines and advanced asset pipelines are now integral to more than half of organizations beyond traditional game development, spanning media, automotive, education and healthcare. The primary drivers are the demand for high‑quality visual tools that can be reused across projects and the need to streamline workflows amid increasingly complex, remote‑enabled teams. Funding constraints, collaboration bottlenecks—particularly large‑file transfer—and limited staffing emerge as the top challenges. Collaboration pain points persist, with 31 % of studios citing slow large‑file transfer and 38 % reporting remote coordination issues. Unreal Engine dominates usage at 63 %, while Unity follows at 47 %. Perforce Helix Core leads version‑control adoption (51 %) across industries, with GitHub and GitLab trailing. These figures underscore the necessity of robust pipelines that support rapid asset sharing, remote teamwork and efficient version control. Asset management practices vary by studio size: AAA studios largely build custom tools (≈ 19 %) to handle extensive IP libraries, diverting resources from core development; indie and mid‑size studios rely more on market solutions, with 32 % using Perforce Helix Core and only 17 % developing in‑house tools. Generative AI is widely adopted, with over 65 % of respondents using an AI tool—ChatGPT being the most common (47 %). Indie studios adopt AI more aggressively than AAA studios, and usage patterns differ by industry. Cloud development is also prevalent: 49 % run cloud servers, led by AWS (30 %) and Azure (18 %), while hybrid or on‑premises setups are rare. Hiring priorities across gaming, media, education, engineering and automotive sectors emphasize specialized experience (91–100 %) and strong portfolios (75–94 %). General cross‑functional skills such as rapid learning and presentation abilities are valued but to a lesser extent (54–82 %). The data indicate that firms prioritize deep technical expertise and demonstrable work, reflecting a continued focus on specialized knowledge across all sectors.

market-analysis global cross-platform

Perforce SoftwareJan 2024

Financial

Game & Network Services Segment

The Game & Network Services segment demonstrates a robust market position characterized by a PlayStation 5 monthly active user base of 118 million and a significant increase in per-console spending, which currently averages $731. This financial performance is underpinned by a strategic shift toward a digital-first ecosystem and recurring revenue models, evidenced by 35% of PlayStation Plus subscribers migrating to premium tiers. Looking toward the FY24–26 period, the primary objective is to secure sustainable profitability by balancing traditional hardware sales with an expanded peripheral lineup and the integration of AI and hybrid cloud technologies to optimize engineering efficiencies. The operational strategy for PlayStation Studios emphasizes a multi-format expansion of intellectual property across console, PC, and live service platforms. Following a period of aggressive studio acquisitions between FY21 and FY23, the focus has transitioned toward disciplined development frameworks and the management of a diversified portfolio. This portfolio includes high-performing tentpole franchises, such as Marvel’s Spider-Man 2 and Helldivers 2, alongside transformational live services and experimental titles. By leveraging broader corporate synergies, the segment aims to maximize the reach of its core IP while utilizing AI-driven tools to streamline production costs and timelines. Future growth remains subject to a complex landscape of macroeconomic and technological risks. Intense market competition and rapid shifts in consumer technology necessitate constant innovation, while financial outcomes are sensitive to foreign exchange volatility, particularly involving the Yen, USD, and Euro. Furthermore, global stability is pressured by geopolitical conflicts and regulatory scrutiny, which may impact supply chains and international operations. Maintaining product quality and cybersecurity remains a critical priority as the segment navigates these external pressures to achieve its long-term financial targets.

market-analysis global console+2

Sony GroupJan 2024

Report

Digital Services Report

The quarterly Digital Services Report presents a comprehensive snapshot of the global digital services landscape for Q2 2024, focusing on mergers and acquisitions, fundraising activity, market trends, and key performance indicators across technology-enabled services. The report highlights a robust deal pipeline, with 350+ disclosed M&A transactions totaling over $7.4 billion and 880+ fundraising deals raising more than $8.1 billion, underscoring continued investor confidence despite macro‑economic uncertainty. Notable transactions include Cognizant’s $1.3 billion acquisition of Belcan, EQT’s $3.0 billion purchase of Perficient, and Virtusa’s acquisition of ITMAGINATION, illustrating a strategic shift toward digital transformation capabilities. Fundraising highlights feature Sikich’s $250 million minority investment from Bain Capital, Uniqus Consultech’s $10 million Series B led by Nexus Ventures, and Raft’s $60 million venture round from Washington Harbour. Market analysis identifies generative AI and other AI‑powered technologies as primary catalysts for future deal momentum, with expectations of heightened M&A activity in Q3 2024 driven by pent‑up demand and abundant private equity capital. Geographic coverage spans North America, Europe, and Asia-Pacific, with a focus on technology‑enabled services such as cloud migration, cybersecurity, business intelligence, and data analytics. Methodology relies on proprietary Drake Star analysis of M&A and private placement databases, supplemented by secondary sources including Capital IQ, PitchBook, and SimilarWeb. The report concludes that corporates increasingly pursue inorganic growth to unlock value, achieve efficiencies, and stay ahead of technological disruption. It positions digital services as a high‑growth sector poised for continued consolidation and innovation, offering investors and executives actionable insights into emerging trends and strategic opportunities.

market-analysis mergers-acquisitions global

Drake StarJan 2024

Report

Save Point 2024: Recapping the Year’s Biggest Trends on Live Streaming

The report demonstrates that live‑streaming in 2024 expanded explosively, with viewership on platforms such as Kick rising 176 % to 1.7 billion hours and Spanish‑speaking audiences growing 546 %. New entrants like Chzzk and SOOP Korea doubled early‑year metrics, while simulcasting became mainstream; top creators such as Ninja and TheGrefg saw concurrent‑viewer increases of 148 %–491 %, illustrating a shift toward multi‑platform, global reach. RPG titles dominated the content landscape, with Elden Ring alone accounting for 293 million hours watched and its DLC Shadow of the Erdtree drawing 127 million in the first month. Other action RPGs—Path of Exile (85 M) and Monster Hunter: World (66 M)—also attracted large audiences, while legacy expansions like World of Warcraft: The War Within (55 M) and Final Fantasy VII Rebirth (16 M) confirmed that remakes and expansions remain potent drawcards. RPGs therefore retained a substantial share of total hours, underscoring their continued relevance to streamers and viewers. Creator‑driven growth extended beyond esports, with mega events such as Ibai’s La Velada del Año peaking at 3.8 M viewers and inspiring global copycats like WestCOL’s Stream Fighters 3 (1.4 M peak). Established streamers—Junichi Kato, Rubius, Ludwig—continued to command 335 K–385 K peak audiences and earned awards, while Twitch’s monthly subscriber gains reached 16 M. These trends highlight a pivot toward loyal fanbases and community building, positioning live streams as primary channels for brand engagement. The broader ecosystem reflected this diversification: record subscriber growth during the Esports World Cup, mobile esports titles such as Brawl Stars generating 961 k hours in a single day, and effective Twitch Drops campaigns for games like Hunt. Creator‑led events (e.g., Hyper Game Tournament’s 3.8 M hours) and co‑streaming dominance at the Six Invitational illustrate cross‑platform collaboration, while non‑gaming streams—political coverage on Rumble, music concerts in Sky: Children of Light, and brand‑driven content like Roblox’s dress‑up game—demonstrated the medium’s expanding reach. Overall, 2024 saw live‑streaming evolve into a multi‑segment, globally distributed ecosystem driven by RPG content, simulcasting, creator influence, and cross‑genre experimentation. The data underscore a continued shift toward diversified platforms, loyal audiences, and innovative content formats across gaming and beyond.

streaming market-analysis global

EAJan 2024

Report

Sensor Tower Global Mobile Gaming Industry Outlook 2024

The report presents a comprehensive assessment of the global mobile gaming market for 2023 and forecasts through 2028. Global in‑app purchase (IAP) revenue reached $76.7 billion in 2023, a 2 % decline from the prior year but still 22 % above 2019 levels. Forecasts project a rebound to $78 billion in 2024 and an average annual growth rate of 6.8 %, with revenue expected to exceed $100 billion by 2028. Geographically, the United States remains the largest market with $22.2 billion in 2023, while China’s iOS segment held steady at $15.1 billion. Japan and South Korea experienced declines of 13 % and 7 %, respectively, with Japan’s RPG segment falling 17 % to $6.1 billion. Genre‑level analysis shows casual games leading revenue growth, with a 38 % share of global IAP and an 8 % increase to $28.6 billion. Hybrid‑casual games grew 30 % to $2.1 billion, whereas mid‑core and hardcore segments contracted. RPGs and strategy games dominated revenue generation ($20 billion and $14.8 billion, respectively) but declined 10 % each. Puzzle and board titles such as “Royal Match” and “MONOPOLY GO!” achieved double‑digit growth, each surpassing $10 billion in revenue. The methodology relies on Sensor Tower’s App Performance Insights, estimating IAP from the Apple App Store and Google Play while excluding advertising and third‑party Android revenue. Data covers December 2023, with forecasts extending to 2028.

market-analysis market-forecast global

Sensor TowerJan 2024

Report

Behind the Screens: The Salary Stats in Gamedev

The study investigates compensation patterns across the global game‑development industry, drawing on a 2024 survey of more than 1,000 professionals from 15 countries. Respondents reported annual salaries in U.S. dollars and provided context on experience, role, and location. The data reveal a highly uneven pay distribution: 40 % of developers earn under $40,000, 34 % fall between $40,000 and $79,999, 15 % earn $80,000–$149,999, and 11 % exceed $150,000. Geographic analysis shows the United States as the highest‑paying market, with 36 % of respondents earning above $150,000 and an average developer salary of $101,392. The United Kingdom, Canada, Germany, Spain, India, Sweden, France, and Poland exhibit lower averages ranging from $36,000 to $56,000. Experience levels strongly influence pay: interns and fresh graduates cluster below $10,000, juniors remain in the same bracket for 27 %, mid‑level professionals earn $10,000–$49,999, while senior and lead roles span $30,000–$89,999, with 19 % of seniors surpassing $150,000. C‑level executives display a mixed picture; 41 % earn above $150,000, yet 19 % report financial strain. Across job categories—animators, artists, creative directors, developers, designers—the salary ranges overlap widely, but creative directors and senior roles consistently command the highest pay. The survey methodology relied on anonymous self‑reported data supplemented by external sources such as Glassdoor, Pingle Studio, and HAYS for regions with limited sample sizes. The findings underscore the importance of geography, experience, and role in shaping compensation within game development.

salary employment market-analysis+1

80 Level ResearchJan 2024

Report

Gaming Deals Report: 2023

The 2023 fiscal year marked a period of significant correction and stabilization for the global video game industry following the hyper-inflated deal-making activity of 2020–2022. While total merger and acquisition (M&A) value reached a record $78.2 billion, this figure was heavily skewed by the $68.7 billion closing of the Microsoft-Activision Blizzard deal. Excluding this transaction, M&A activity settled at a modest $9.5 billion, reflecting a sharp decline in deal volume and a cautious approach from strategic investors facing macroeconomic uncertainty and increased regulatory scrutiny. Private investments saw a substantial downturn, falling to $2.7 billion in 2023 from $10.7 billion the previous year. This decline was primarily driven by a collapse in late-stage funding, as high interest rates and a closed IPO window made large-scale venture rounds less attractive. Conversely, early-stage activity remained resilient, supported by over 30 new gaming-focused funds established since 2020. Seed funding maintained momentum as investors sought better entry terms and lower valuations. Geographically, North America led in deal volume and value, followed by Western Europe and Asia, though Asian strategics increasingly shifted toward co-investing with venture capital firms to mitigate risk. The industry is currently navigating several transformative trends, most notably the integration of generative AI. Unlike the speculative "boom and bust" cycle of blockchain gaming, AI is viewed as a long-term tool for production efficiency, despite lingering concerns regarding intellectual property and copyright. Meanwhile, sectors such as Esports and Web3 faced continued struggles, with investment in Web3 falling 4.4 times compared to 2022. Looking toward 2024, there are early signs of a rebound, evidenced by $1.7 billion in fundraising in January alone. Analysts anticipate a potential resurgence in M&A and public offerings as corporate earnings improve and the gap between buyer and seller valuation expectations narrows. However, persistent challenges remain, including the threat of late-stage down rounds, studio shutdowns, and evolving platform policies from major tech entities.

mergers-acquisitions investment market-analysis+1

InvestGameJan 2024

Financial

Consolidated Financial Results Data Appendix: FY2024

This financial data appendix provides a comprehensive quantitative overview of Koei Tecmo’s performance for the fiscal year ending in 2024, alongside historical data from FY2022 and FY2023 and forecasts for FY2025. The data tracks the company’s primary business segments, including Entertainment, Amusement, Real Estate, and other minor operations, with a heavy emphasis on the Entertainment division’s console, PC, and mobile gaming performance. Financial results for FY2024 show consolidated sales of 83,150 million yen, a slight decrease from the 84,584 million yen recorded in FY2023. Despite this dip in revenue, operating profit rose to 32,119 million yen, representing a healthy 39% profit ratio. Net profit reached 37,628 million yen, bolstered by significant non-operating income. Geographically, Japan remains the largest market, accounting for 49,220 million yen in sales, while the overseas ratio stood at 40.8%. North America and Europe showed growth in the latter half of the year, while Asian markets excluding Japan saw a decline. The Entertainment segment remains the primary driver of value, contributing 78,078 million yen to total sales. Within this segment, the mobile and online categories generated 37,560 million yen, while console and PC gaming accounted for 39,520 million yen. Digital sales continue to dominate the distribution model, reaching a 78.1% digital ratio for the full year. Total software sales units for FY2024 reached 7.63 million copies, with a forecast to exceed 9 million units in FY2025. Looking forward, the company projects growth for FY2025, with an initial sales forecast of 92,000 million yen and an operating profit target of 31,000 million yen. This growth is supported by a robust title lineup including Romance of the Three Kingdoms 8 Remake, Dynasty Warriors: Origins, and Atelier Yumia. To support these goals, the company has steadily increased its headcount to 2,684 employees and plans for further expansion in the coming year.

market-analysis investment global

Koei TecmoJan 2024

Report

Digital Market Index: Q1 2024

Global consumer spending on mobile applications reached a record $45 billion in the first quarter of 2024, reflecting a 9.5% year‑over‑year increase that was largely driven by the iOS ecosystem, which grew 11.5% versus a 5.3% rise on Google Play. Despite this surge in spend, total app downloads fell 3.5%, marking the third consecutive quarterly decline since Q1 2021; nevertheless, iOS maintained its highest quarterly download volume since 2020. Entertainment and productivity categories led the spend growth, each expanding over 30% YoY, while gaming spending rebounded on iOS but remained flat on Google Play. Hyper‑casual games continued to dominate the download landscape, with racing and action titles generating the largest volumes. Conversely, casual sub‑genres such as arcade and simulation experienced double‑digit declines. TikTok remained the top spender globally, generating more than $1.2 billion in revenue and outpacing YouTube by a wide margin, while emerging short‑form drama apps—ReelShort, DramaBox, and ShortMax—entered the top ten for both revenue and download growth. In mobile gaming, “Monopoly GO” set a new quarterly spend record of $770 million, surpassing the previous $765 million benchmark and standing alone as a title to exceed $600 million in a single quarter. Retail‑media advertising in the United States was led by Walmart and Target, which together delivered over 18 billion impressions in Q1 2024. Specialized retailers such as Chewy and Home Depot captured significant niche shares, with personal care emerging as the top category overall—driven by Ulta and Sephora. Walmart dominated food, beverages, and consumer packaged goods, while Target excelled in shopping, household supplies, and baby & toddler segments. Co‑branded partnerships—including Chewy × Purina, Walmart × Unilever, and Target × Apple—generated hundreds of millions of impressions, underscoring the strategic value of retailer‑brand collaborations in expanding digital ad reach.

market-analysis global mobile+1

Sensor TowerJan 2024

Report

Marketing Insights into Global Mobile Games & Minigames in 2024

The analysis outlines global mobile game advertising trends for 2024, drawing on a database of over 1.6 billion ad creatives from more than 70 countries and 80 media channels, including Facebook, TikTok, YouTube, Unity, and WeChat. Monthly active mobile game advertisers peaked at 70 k in June, with a total of 63.5 k average for the year and a steady decline in new advertisers to below 7 % after August. Conversely, the proportion of advertisers releasing new creatives rose from 52.7 % in early 2024 to an expected 55 % in the second half, with new creatives comprising roughly 65 % of total ads. Genre‑level data show casual games experienced a 3 % YoY drop, while casino titles grew over 10 %. RPGs and puzzle games remained stable. The top twenty global mobile titles by ad spend include “Pesta Ludo,” “Monopoly GO!,” and “Block Blast! Hungry.” In the minigame segment, WeChat’s market reached RMB 60 billion in 2023, with over 400 k developers and a user base averaging one hour of play per day; the most successful minigames are predominantly RPG/SLG hybrids. Marketing patterns differ by region: Asia‑Pacific campaigns focus on pre‑registration and new‑release periods, whereas Europe and America emphasize stable‑period creatives. The most anticipated minigames for H2 2024, such as “Capybara Go!” and “Bacon’s Revenge,” demonstrate high daily revenue projections (over USD 600 k) and rely on video‑heavy, localized creative strategies across Meta platforms and YouTube. The report’s methodology relies on real‑time scraping of ad creatives, monthly activity metrics, and genre classification to provide actionable insights for advertisers seeking to optimize spend in a tightening competitive landscape.

marketing advertising mobile+1

SocialPetaJan 2024

Report

AI's Everyday Evolution: The Expanding Role of Chatbots in Consumer Life

The rapid expansion of artificial intelligence chatbots is fundamentally altering consumer behavior, signaling a shift away from the long-standing dominance of traditional search engines. By early 2025, OpenAI’s ChatGPT reached 500 million global monthly active users, achieving this milestone faster than any app in the last decade. This growth is accompanied by a significant increase in engagement; in April 2025, ChatGPT saw a 60% rise in session frequency and a 270% jump in web visits, while traditional search engines experienced a 3% decline in user engagement metrics. The demographic profile of AI users is evolving from technical early adopters to mainstream consumers. This transition is reflected in the shifting nature of user prompts. While software development queries accounted for 44% of prompts in early 2024, they fell to 29% by 2025. Conversely, categories such as economics, finance, and taxes saw a substantial increase, rising 9 percentage points year-over-year. This suggests that consumers are increasingly relying on AI for complex personal tasks, including investment planning and tax preparation. Data indicates that chatbots are becoming powerful engines for web traffic and commerce. The top referral destinations from ChatGPT include YouTube, Wikipedia, and the National Library of Medicine, with Amazon ranking fourth. This positioning highlights the growing role of AI in driving purchase intent and informational discovery. While early adopters of AI have already reduced their time spent on Google apps by approximately 6%, more recent converts have yet to show a material change in search habits, suggesting that the erosion of traditional search dominance may accelerate as user habits solidify over time.

ai marketing user-acquisition+1

Sensor TowerJan 2024

Report

2024 State of Game Technology Report

The global game technology landscape has reached a critical inflection point in 2024, characterized by the widespread expansion of game engines into non-gaming sectors such as automotive, healthcare, and media. Approximately 50% of developers now utilize these engines for cross-industry applications, with Unreal Engine maintaining a dominant 63% market share, particularly within media and entertainment. Despite this growth, the industry contends with significant structural challenges, including acute funding shortages, personnel deficits, and the technical complexities of managing massive data sets across distributed teams. To mitigate these hurdles, organizations are prioritizing toolset consolidation and robust version control systems, with Perforce Helix Core and Git-based platforms serving as the primary infrastructure for modern development pipelines. The technical ecosystem remains highly fragmented but is increasingly defined by a shift toward automation and cloud integration. Microsoft Visual Studio and Jenkins continue to lead in the AAA space, though modern alternatives like JetBrains Rider and GitHub Actions are gaining substantial traction. Cloud-based development has become a standard practice for nearly half of the industry, with Amazon Web Services emerging as the preferred provider. Furthermore, generative AI has seen rapid institutional integration, with 65% of organizations adopting the technology to streamline workflows. This technological evolution coincides with a shift in labor dynamics; following widespread industry layoffs, employers now prioritize cross-functional adaptability over narrow specialization, while the workforce increasingly values direct access to leadership and mental health support. Geographically and industrially broad, these findings reflect a transition toward more agile, cloud-native development environments that must balance aggressive timelines against resource constraints. The move toward indie development and the diversification of game engine utility suggest that the boundaries between traditional gaming and broader digital creation are permanently blurring. Success in this environment depends on the ability to manage increasingly large file sizes and complex collaboration requirements through integrated CI/CD and version control strategies.

market-analysis game-engines game-development+1

PerforceJan 2024

Report

The State of Web3 Gaming 2024

The Web3 gaming market entered a phase of maturation in 2024, marked by a strategic pivot from rapid expansion to ecosystem stability. While new game announcements decreased by 36%, project discontinuations plummeted by 84%, signaling a more resilient landscape. Indie developers currently drive over 90% of new launches, though technical integration remains a significant hurdle, with only 34% of titles successfully incorporating blockchain infrastructure. To combat the inflationary failures of earlier economic models, the industry is shifting toward "Play-to-Airdrop" mechanics to foster more sustainable player engagement. Geographically, the APAC region and the United States remain the primary hubs for development, collectively hosting the majority of active teams. Genre dominance continues to favor RPG, Casual, and Action titles, which also attract the bulk of stabilized venture capital funding. A notable shift in distribution is underway as Telegram emerged as a powerhouse platform, capturing 21% of new game launches, while the Epic Games Store expanded its Web3 portfolio to nearly 100 titles. This evolution in accessibility is mirrored by a technical migration toward Layer 2 and Layer 3 solutions, which now account for 57% of new game launches. Infrastructure is becoming increasingly specialized, with 64% of new blockchains designed specifically for gaming. Although the Ethereum Virtual Machine ecosystem maintains its dominance, high-growth frameworks like Arbitrum Orbit and Immutable are driving a record number of migrations as developers seek more efficient environments. Despite a 200% surge in token launches, investors maintain a conservative outlook, prioritizing high-quality game content over foundational infrastructure. This growth occurs against a fragmented regulatory backdrop, where developers must navigate the rigorous enforcement of the U.S. SEC alongside more structured frameworks in Asia and the European Union.

market-analysis web3 blockchain+1

Game7 ResearchJan 2024

Financial

AI’s Ever‑Growing Presence in Gaming: $1.8B in VC Investments

The analysis tracks venture‑capital financing of AI‑driven gaming startups from 2020 through 2024, quantifying how artificial‑intelligence tools have reshaped investment patterns across three verticals: in‑game content generation, development‑infrastructure platforms, and ancillary AI applications such as marketing, analytics and community management. By filtering for companies that received external VC funding and excluding studios that merely use AI internally, the study aggregates deal counts and monetary values from public financing announcements, creating a comprehensive view of market dynamics over a five‑year horizon. Across the period, investors allocated roughly $1.8 billion to AI‑focused gaming ventures, with $1.2 billion directed toward content‑generation tools, $0.4 billion to infrastructure solutions, and $0.2 billion to other AI‑enabled services. Deal activity accelerated markedly, rising from 35 transactions in 2020 to 73 in 2024, and the total deal value expanded at an estimated compound annual growth rate of 35 percent between 2022 and 2024. By the end of 2024, AI‑centric startups accounted for about 65 percent of all gaming‑related VC deals, indicating a strategic shift from broad platform bets toward specialized, scalable AI tooling. The largest financing rounds highlight the sector’s appetite for high‑impact content generators: stability.ai secured a $101 million seed round in October 2022, Parametrix.ai raised $100 million in a Series B the following month, and Pika closed an $80 million Series B in June 2024. Andreessen Horowitz emerged as the most active investor, participating in 20 deals worth $233 million, followed by BITKRAFT with 12 deals totaling $177 million and Y Combinator with eight deals for $23 million. Early‑stage rounds dominate the landscape; although the average check size tripled from 2020 to 2024, the majority of investments—124 deals—

investment ai global+1

GDevJan 2024

Financial

Global Gaming Report Q2 2024

The Q2 2024 global gaming landscape is marked by a pronounced acceleration in mergers, acquisitions and financing activity. Over the quarter, 52 announced deals reached $3.5 billion, with EQT’s $2.8 billion purchase of Keywords standing out as the largest transaction. Private‑financing activity remained steady at 181 deals, a sizable portion—40 %—focused on blockchain gaming. Early‑stage funding dominated the market, accounting for 94 % of deals and led by Asian investors. Public‑market momentum is expected to persist, with several titles poised for IPO and private‑equity firms ready for additional take‑private transactions. Venture capital continues to surge, with seed and Series A/B rounds totaling more than $3 billion. Investments concentrate on metaverse‑centric studios such as The Sandbox and OpenREC, alongside a strong emphasis on intellectual property creation and streaming platforms. On the buyer side, Tencent, NetEase, and Sea Limited maintain dominance, each executing multi‑hundred‑million dollar deals that reinforce consolidation and strategic investment in high‑growth gaming ecosystems. The indie and AA segment has rebounded sharply, driven by firms like Devolver Digital, Team 17, and tinyBuild. Year‑to‑date performance figures—Logitech up 120 %, KRAFTON and Take‑2 each rising over 53 %—illustrate robust upside in this space. The Drake Star Gaming Index, an equal‑weighted benchmark of 30 large gaming firms, slipped only –0.3 %, contrasting with broader market declines (S&P 500 down 10.9 %). These data underscore that while mega‑publishers face volatility, the indie/AA sector remains a resilient source of growth and investment interest.

market-analysis mergers-acquisitions global+1

Drake StarJan 2024

Financial

Games Investment Review Q4 2023 Executive Summary Report

The analysis evaluates global capital flows into the video‑games ecosystem throughout 2023, with a focus on the fourth quarter, to gauge how mega‑transactions and shifting investor priorities are reshaping the market. The central thesis is that headline‑grabbing acquisitions mask a broader contraction in deal activity, prompting a more disciplined allocation of funds as the sector confronts macro‑economic pressures and tighter regulatory environments, particularly in China. Overall M&A volume fell 22 % year‑on‑year, yet Q4 recorded a record $70.8 bn in total deal value, 98 % of which derived from Microsoft’s $68.7 bn purchase of Activision Blizzard. Excluding that outlier, annual M&A would have amounted to just $11.4 bn, an 80 % decline. Private‑equity and venture investment also weakened, with Q4 investment volume dropping to $936.6 m—the first sub‑$1 bn quarter since 2018—and the number of deals falling 21 %. IPO activity remained flat at three offerings, though market‑cap surged 257 % to $112 m. AI‑related funding accounted for 28 % of undisclosed deals, totaling $319 m across 61 transactions, while blockchain financing collapsed 72 % in value to $1.4 bn despite a modest revival after the SEC approved spot‑bitcoin ETFs. Geographically, Europe dominated the quarter with roughly $308 m across 20 deals, Asia trailed, and the remainder of the world contributed about 12 % of undisclosed volume. Sovereign wealth funds entered the arena more prominently, exemplified by Saudi Arabia’s $4.9 bn acquisition of Scopely and a $265 m stake in e‑sports firm VSPO. The outlook for 2024 anticipates continued headwinds and stricter Chinese regulation, but forecasts a stabilization of investment and IPO activity in the second half of the year as valuations soften and strategic capital deployment becomes the norm.

investment mergers-acquisitions market-analysis+1

DDMDec 2023