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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.