The game industry’s motto for all of last year was “survive til 2025.” And in some respects, that wasn’t just wishful thinking.
As the industry trudged through 2024, market researcher DDM saw positive signs. And with one quarter of 2025 in the books, it certainly seems that things are trending in the right direction when it comes to game deals — investments or M&A.
Q1 2025 not only marks the second consecutive quarter of growth, but it is the largest quarter since Q4 2023, with combined games investments and M&As totaling $7.8 billion across 245 transactions (+29% in value and +1% in volume compared to Q4’s $6.0B across 243 combined investments and M&As).
Q1 2025 overview
DDM’s count of M&A in the first quarter of 2025.
Q1 2025 investments saw a significant increase in value, totaling $4.4 billion across 190 investments (+370% in value and -8% in volume compared to Q4’s $945.9 million across 207 investments) recording 4.7 times in value growth QoQ and the largest quarter since Q2 2022.
Q1 2025 M&As saw a sizable decline in value, totaling $3.3 billion across 55 transactions (-34% in value and +53% in volume compared to Q4’s $5.1 billion across 36 transactions), despite having the largest quarterly volume since Q4 2022. That was largely driven by 44 undisclosed M&As (80% of total volume and 13% above the quarterly average of 67%).
And the quarter saw a major surge in new fund announcements, totaling $21.8 billion across 43 funds (+122% in value and +13% in volume compared to Q4’s $9.8 billion across 38 funds), marking the largest quarter since Q2 2022; this 2.2 times QoQ value growth was driven by five funds collectively raising over $14.3 bilion (65% of the capital raised).
Mitchell Reavis, DDM games investment review director, said in a statement, “There’s no doubt that ‘survive til 2025’ became a defining mantra for the games industry during recent turbulent years. While DDM anticipates ongoing layoffs, strategic pivots, and the divestiture of non-core business offerings throughout 2025, the data reveals genuine signs of recovery with investment and M&A trends moving in the right direction.”
Summary of investments
Q1 2025 investments totaled $4.4 billion across 190 investments (+370% in value and -8% in volume compared to Q4’s $945.9 million across 207 investments) achieving a 4.7 times in value growth QoQ and the highest value since Q2 2022 of $6.1 billion; this achievement can be attributed to Infinite Reality’s $3.0 billion mid/late-staged investment from Sterling Select (67% of the quarter’s value).
The firm said Q1 2025 game developer in …