Konvoy released a report on the gaming industry this week in the first quarter of 2025, revealing detailed information on industry trends, including venture capital transactions, mergers and acquisitions around the world. Konvoy predicts the gaming industry will be worth $186 billion in 2026, up 4.7% year-on-year, according to the report. It also provides information on key industry transactions, as well as the impact of escalate dente between the US and China.
The company reports that the gaming industry saw 43 mergers and acquisition deals in the first quarter, with the two largest being the $3.5 billion acquisition of Niantic’s gaming division and the $620 million acquisition of Prarium from Modern Times Group. It also points out that there were 77 VC deals this quarter. This was a 6% decrease from the last quarter. However, the total amount of VC funds was $373 million, an increase of 35% per quarter.
Josh Chapman, managing partner at Convoy, told GamesBeat: “In the first quarter of 2025, North America saw gaming investments and 53% of Asia, where they only saw 33% of the sector’s total investment capital. However, there is no local capital group to build a local contract market.
One other major point from the report is about the ban on US Chinese companies, including its impact on games such as Marvel Snap and Clan Clash. Konvoy expects an increase in US scrutiny of the entities of countries such as China, adding that this could have a major impact on the industry given how China is involved in the game. Ubisoft also said it is the latest gaming entity to accept money from China’s conglomerate Tencent.
Gamesbeat asked Chapman about the tension between the two entities, saying, “US/China tension revolves around US games that require Chinese games with Chinese gatekeepers and open entries into the US market.
Konvoy’s complete Game Industry Report It includes local insights and is currently available on the company’s website.
