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Convoy recently released its latest Gaming Industry Report, which covers gaming funding through the most recent financial quarter – in this case, Q4 2024. According to Konvoy’s report, the gaming industry It is expected to complete 2024 as a $188 billion industry, with expected growth set in it. to $223 billion in 2029. However, most of the report shows that there is not much funding for game-related startups, nor is there an increase in mergers and acquisitions in that quarter.
One of the reasons Konvoy’s report picked up on was that funding for games or gaming companies slowed down in Q4. According to the report, $286 million in venture capital funding went into the game, the lowest quarter of funding in more than five years with the number being a 47% drop quarter-over-quarter. Much of the decline appears to have come from financing the growth phase. There were also 83 VC deals in play, a 25% decline QoQ, with a decline in early-stage deals.
Konvoy also noted a decline in gaming startups graduating from seed-stage funding to Series A. Only 11.5% of gaming startups that raised a seed round since Q1 2018 went on to raise a Series A round for two years. That is a lower rate than the 20-30% success rate of other startups. The number has also decreased in recent years: The graduation rate for startups that have raised seed funding since Q4 2021 has decreased to 4%.
In last quarter’s report, Konvoy noted an increase in funding going to AI-related gaming startups. This number appears to have fallen in Q4, with 10% of funding going to such startups, as opposed to Q3’s 22%. Other insights from the report show the estimated sales of the Nintendo Switch against its competitors, the PlayStation 5 and the Xbox Series X/S; as well as further scrutiny of game companies for their child protection measures.
Convoy’s complete Gaming Industry Report includes regional insights and is now available on the company’s website.
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