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DDM: Gaming M&A activity reached $76.7bn in 2023

The year also saw investment transactions decrease by 69% year-over-year across 616 deals

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A new report from Digital Development Management (DDM) reveals that gaming M&A activity reached $76.7 billion during 2023 across 147 transactions.

By comparison, last year saw acquisitions hit $41.4 billion throughout 295 deals.

The report noted this was driven by Microsoft's acquisition of Activision Blizzard, which closed in October.

"Without the Microsoft and Activision Blizzard transaction, 2023 M&As would have totaled $8 billion across 146 transactions. The lowest since the pandemic where 2020 reached $12.1 billion across 233 transactions," said DDM.

Meanwhile, investments during the year fell by 69% year-on-year to $4.4 billion, totaling 616 transactions. The report calls it the lowest for gaming investments in seven years.

Meanwhile, during Q4 of 2023, the report noted that M&A activity generated $69.9 billion from 42 deals.

Investments during the quarter reached $937 million from a total of 119 transactions.

The highest segments by value for Q4 investing were mobile at 32%, mass community games such as MOBAs made up 20%, and tech/other commanded 18%.

Additionally, DDM called 2023 a corrective year after record-high revenues during the COVID-19 pandemic.

"While COVID was a horrible event, it's no question the games industry benefited while the population was confined to their homes and needed a form of entertainment. Now everyone is back to normalcy, revenue has slowed, requiring studios to restructure, have layoffs and in some cases, strip their business to products that are core to their brand," said the firm.

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Jeffrey Rousseau avatar
Jeffrey Rousseau: Jeffrey joined in March 2021. Based in Florida, his work focused on the intersectionality of games and media. He enjoys reading, podcasts, staying informed, and learning how people are tackling issues.
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