Gaming investments surge to $2.2 billion in Q1, DDM report finds

Digital Development Management (DDM) has revealed that gaming investments soared to $2.2 billion in the first quarter of this year, marking a significant increase compared to the same period last year. Although there was a notable decline in value compared to Q4 2023, excluding Microsoft’s acquisition of Activision Blizzard, Q1 2024 nearly doubled the previous year’s investment value, signaling a positive start to 2024.

Investments in Q1 2024 totaled $2.2 billion across 178 transactions, representing a 123% increase in value and a 20% increase in volume compared to Q4 2023. This marks the first quarter since Q3 2022 to surpass $2.0 billion in investments.

Mergers and acquisitions (M&As) in Q1 2024 totaled $2.0 billion across 41 transactions, showing a decline in value compared to Q4 2023. Excluding the Microsoft/Activision Blizzard deal, Q1 2024 saw a 65% increase in value compared to the previous year.

Initial public offerings (IPOs) in Q1 2024 amounted to $7.2 million in total market capitalizations from one IPO, a significant decrease compared to Q4 2023. However, new fund announcements totaled $13.7 billion across 28 funds, with two funds raising over $2.0 billion each.

The quarter was highlighted by Disney’s $1.5 billion investment in Epic Games, which accounted for 67% of the total investment value. 

Blockchain investments also saw interest, totaling $292.7 million across 66 investments, driven by interest in Bitcoin ETFs.

In terms of segments, the highest value was led by Tech/Other (73%), followed by Console/PC (9%), MCG (8%), Mobile (5%), eSports (3%), AR/VR (1%), and Browser (<1%). Meanwhile, Console/PC led in volume, accounting for 32%, followed by Mobile (27%), Tech/Other (16%), MCG (11%), eSports (8%), AR/VR (4%), and Browser (2%).

Undisclosed investments totaled 70 transactions or 39% of the quarter’s total, marking the highest percentage recorded and dampening overall values in the industry. Despite more transactions compared to pre-pandemic levels, the higher undisclosed deals suggest strategic moves and unfavorable values and terms in a challenged industry.