The Gaming sector saw robust M&A activity during the first quarter of 2025 with 59 deals announced. Demand was strong from financial and strategic buyers with Private Equity firms representing the acquirer in 17% of these transactions.  Recent deal activity indicates sustained consolidation driven by major players seeking competitive advantage through portfolio expansion and technological capabilities. 

During the first three months of 2025, the total disclosed deal values reached $5.4B, aided by a megadeal. Only 24% of deals disclosed their financial terms as buyers preferred to keep their M&A strategies private. Companies continued targeting mid-sized and smaller studios to enhance their assets and broaden their capabilities and there was also an appetite for larger deals as well. 

The top buyer in the first three months of 2025 was Singapore-based game development company Virtuos Holdings, which made 3 deals. Additionally, video game service provider TransPerfect Gaming and Swedish computer game technology firm Adventure Box Technologies both made 2 deals.  

The number of VC deals in the Gaming sector have declined considerably in recent years, dropping from over 1,760 in 2022 to 210 during the first quarter of 2025. Venture capital investment in the Gaming sector has been incredibly volatile and that trend continued into the first three months of 2025. Companies have instead been encouraged to pursue M&A strategies for growth and liquidity.