Konvoy today released its latest Gaming Industry Report for Q2 2025, showing that venture capital funding in the games industry dropped quarter-over-quarter for that month while private funding rose. The report also covers the recent industry trends, including the launch of the Nintendo Switch 2 and the delay of Grand Theft Auto VI. It also slightly increased its 2025 prediction of the games industry’s revenue to $189 billion.
According to Konvoy’s report, VC funding in the games industry dropped by 47% quarter-over-quarter to $193 million, with growth-stage funding contracting by two-thirds. VC deals have dropped 31% with 60 deals, compared with Q1’s 87. By contrast, private funding has gone up by 66%, with Tripledot’s acquisition of AppLovin accounting for a large portion of it.
The report also notes that mergers and acquisitions were shifting in the direction of consolidation: “This quarter’s activity demonstrates the gaming industry’s evolution toward sustainable business models, strategic positioning, and operational efficiency. The successful exits achieved by investors in Dream Games and other deals signal healthy liquidity for gaming entrepreneurs and continued private market confidence in the sector’s long-term prospects. We anticipate this will continue the remainder of the year.”
Konvoy’s notes on current industry trends
In addition to the industry funding part of the report, Konvoy also covered the recent trends in the industry, including the launch of the Nintendo Switch 2 and Epic’s success over Apple in the courts. The report also notes the transmedia success of A Minecraft Movie, which drove a 35% spike in game sales and will likely, Konvoy predicts, reignite interest in transmedia investments.
Google, Apple, Epic and Roblox all feature in the news, with Epic’s legal victory over Apple noted to have longterm effects for both Apple and app developers. Regarding the legal ruling from April on Google’s ad monopoly, Konvoy notes: “Uncertainty remains around the specific remedies Google will face following this ruling, but meaningful change for the digital advertising ecosystem is inevitable.” And speaking of digital advertising, Konvoy notes that Roblox’s new rewarded video ads already show promise, with 87% positive user sentiment.
The report also covers the effect that the delay of Grand Theft Auto VI had on the games industry, noting that the vacuum left in late 2025 could cost the industry overall around $2 billion in revenue. As the report notes, “While Take-Two will spend a whopping $2 billion on GTA VI’s game development (compared to GTA V’s $254m), we believe at an $80 price tag with an opportunity to upsell into a subscription, GTA VI will break even within 30 days of release.”