convoy recently released its latest Gaming Industry Report, covering gaming funding in the most recent financial quarter – in this case Q4 2024. According to Konvoy’s report, the gaming industry is expected to be a $188 billion industry by 2024, with projected growth. However, most of the report shows that there has not been, nor has been, major funding for gaming startups There is an increase in mergers and acquisitions in this area.
One of the key takeaways from Konvoy’s report was that funding for games or gaming companies slowed in the fourth quarter. According to the report, $286 million in venture capital funding flowed into gaming, the lowest funding quarter in over five years, with the number declining 47% quarter-over-quarter. Most of the decline appears to be due to growth-stage funding. There were also 83 VC deals in the gaming space, down 25% quarter-on-quarter, with early-stage deals declining.
Konvoy also noted that there was a decline in gaming startups moving from seed-stage funding to Series A. Only 11.5% of gaming startups that have raised a seed round since the first quarter of 2018 have closed Series A funding within two years. This is a lower rate than other startups’ success rate of 20-30%. The number has also declined in recent years: the completion rate of startups that have raised seed capital since the fourth quarter of 2021 has fallen to 4%.
In the previous quarter’s report, Konvoy noted an increase in funding for AI-related gaming startups. This number appears to have fallen in the fourth quarter as 10% of funding went to such startups, compared to 22% in the third quarter. Other insights from the report show the estimated sales of the Nintendo Switch compared to its competitors, the PlayStation 5 and Xbox Series X/S; and increased scrutiny of gambling companies regarding their child protection measures.
Konvoy’s full Gaming Industry Report includes regional insights and is now available on the company’s website.
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