Konvoy recently released its latest gaming industry report, which covers gaming funding during the most recent financial quarter – in this case, Q4 2024. According to Konvoy’s report, the gaming industry is expected to end 2024 as a $188 billion industry, with projected growth putting it at $223 billion by 2029. However, most of the report shows that there was not much funding for gaming-related startups, and that there was no increase in mergers and acquisitions in this area either. quarter.
One of the key takeaways from Konvoy’s report was that funding for games or gaming companies slowed down in the fourth quarter. According to the report, $286 million in venture capital funding went to games, the lowest funding quarter in more than five years, with a 47% quarter-over-quarter decline. Most of the decline appears to come from growth-stage financing. There were also 83 venture capital deals in the gaming sector, a 25% drop quarter-on-quarter, with a decrease in early-stage deals.
Konvoy also noted that there has been a decrease in the number of gaming startups moving from seed funding to Series A. Only 11.5% of gaming startups that have raised a seed round since Q1 2018 then launched a Series A round within two years. . This is lower than the 20-30% success rates of other startups. This number has also declined in recent years: the success rate of startups that have raised seed funding since the fourth quarter of 2021 has fallen to 4%.
In the previous quarter’s report, Konvoy noted an increase in funding provided to AI-related gaming startups. This figure appears to have declined in the fourth quarter, with 10% of funding going to these startups, compared to 22% in the third quarter. Other insights from the report show estimated sales of the Nintendo Switch compared to its competitors, the PlayStation 5 and Xbox Series X/S; as well as the increased scrutiny placed on gaming companies for their child protection measures.
Konvoy’s full gaming industry report includes regional insights and is now available on the company’s website.
