Konvoy recently released its latest gaming industry report. This report covers gaming funding up to the most recent financial quarter (in this case, Q4 2024). According to a report by Konvoy, the gaming industry is expected to become a $188 billion industry by 2024 and is expected to grow. It is expected to reach $223 billion by 2029. However, most reports indicate that gaming startups are not getting much funding and mergers are not increasing. and acquisitions for the quarter.
One of the key takeaways from Konvoy’s report is that funding for games or gaming companies slowed in the fourth quarter. According to the report, $286 million of venture capital funding went into gaming, the lowest funding quarter in five years, with the number down 47% quarter-over-quarter. Most of the decrease appears to be due to growth stage funds. There were also 83 VC deals in the gaming space, down 25% quarter-over-quarter, with early-stage deals also down.
Konvoy also noted that fewer game startups are graduating from seed-stage funding to Series A. Among gaming startups that raised a seed round since Q1 2018, only 11.5% raised a Series A round within two years. This is a low rate compared to the 20-30% success rate of other startups. This number has declined in recent years, with the graduation rate dropping to 4% for startups that have raised seed funding since Q4 2021.
In last quarter’s report, Conboy noted that funding for AI-related gaming startups is increasing. This number appears to have decreased in the fourth quarter, with 10% of funding going to these startups, compared to 22% in the third quarter. Other insights in the report include estimated Nintendo Switch sales against competitors PlayStation 5 and Xbox Series X/S. Similarly, there is increased scrutiny of gaming companies’ child protection measures.
Konvoy’s complete gaming industry report includes regional insights and is available now on the company’s website.
