The games industry raised $51.5 billion over 1,182 transactions according to DDM Data and Research’s Q4 2022 Games Investment Review. This marks the year as the second highest year for investments behind 2021’s $74.5 billion over 1,219 deals.
Readjustment after the pandemic is having far reaching effects on the games market. DDM suggests this decline is a result of crypto winter, macroeconomic headwinds, high interest rates and inflation and recession concerns.
The changing landscape is also changing the nature of these transactions. $38.1 billion of 2022’s $51.5 billion total — nearly 75% — was spent on mergers and acquisitions. This is a 14% increase in M&A transaction value. Meanwhile, total investments declined by 67% from 2021 ($41.0 billion) to 2022 ($13.4 billion).
2022 was a tricky year for gaming IPOs. 12 companies went public last year with a total market cap of $1.6 billion. This is a 99% drop from 2021’s anomalous $109.4 billion total.
DDM’s full Q4 2022 Games Investment Review is available here.