Gaming Market Report: Aream & Co Q2 2025

Aream & Co., in collaboration with InvestGame, has released its analysis of the gaming investment market for the second quarter of 2025. The report provides a detailed overview of mergers and acquisitions, public market activity, and venture capital trends across key segments of the gaming industry. The data highlights a period of mixed performance, with some sectors demonstrating resilience and others facing ongoing challenges.

Current State of the Gaming Market

Mobile Gaming

The mobile gaming market has reached a point of stability in terms of in-app purchase (IAP) revenue, maintaining a consistent level of approximately $20 billion per quarter. However, this stabilization has occurred amid a decline in app downloads, signaling a slowdown in new user acquisition. This trend has increased competition for existing users, which may impact future growth potential. In the United States, companies such as Century Games, Supercell, and iKame have shown notable gains in incremental IAP revenue after platform commissions.

Gaming Market Report: Aream & Co Q2 2025

PC Gaming

The PC gaming segment has demonstrated more positive momentum. Steam recorded a 20 percent year-over-year increase in revenue during Q2 2025, while the number of concurrent users on the platform continues to reach new record levels. Over the past five years, free-to-play PC titles have achieved an average annual growth rate of 17 percent, while premium games have grown by 13 percent. Peak concurrent user numbers have increased by an average of 11 percent annually, indicating sustained engagement. New games such as Clair Obscur: Expedition 33 and Rematch, both released in partnership with Kepler Interactive, contributed to this growth.

Gaming Market Report: Aream & Co Q2 2025

Console Gaming

The console market remains cyclical and is largely driven by the release of new hardware and major game launches. In the 2024 fiscal year, Xbox gaming revenue rose by 5 percent, while Sony reported a 9 percent increase and confirmed 77 million PlayStation 5 units sold. In contrast, Nintendo experienced a 30 percent revenue decline ahead of the upcoming release of the Nintendo Switch 2.

Gaming Market Report: Aream & Co Q2 2025

UGC Platforms

User-generated content (UGC) platforms continue to perform strongly. Fortnite and Roblox have both recorded rising concurrent user counts. Twitch has shown mixed results, with an increase in the number of games streamed but a decline in average watch time. Meanwhile, creator payouts across all major UGC platforms have grown. In 2024, Roblox increased payouts to $923 million, up 25 percent from the previous year.

Epic Games and Overwolf also expanded their creator payouts by 11 percent and 19 percent respectively. Total payouts across these platforms reached $1.5 billion in 2024, representing a 20 percent year-over-year increase. This upward trend in creator compensation has been accompanied by a rise in investments targeting UGC studios.

Gaming Market Report: Aream & Co Q2 2025

Mergers and Acquisitions

The first half of 2025 has marked a strong rebound in M&A activity in the gaming sector. Deal volume reached $9.5 billion, a 144 percent increase compared to the previous half-year, and the total number of deals climbed to 82, the highest figure recorded since the second half of 2022. Notably, the figures exclude the high-profile Activision Blizzard and Microsoft merger. A significant share of recent transactions has focused on mobile gaming, with Keywords Studios being a notable exception outside this segment.

Since 2018, private companies and investment funds have completed 68 gaming-related deals totaling $22 billion. Since 2024, key transactions have included investments in Niantic Games, Keywords Studios, Jagex, Liftoff, Dream Games, and Aonic. Aream & Co. notes that while M&A activity has generally recovered since the pandemic, a clear upward trend is less evident when excluding the Keywords Studios deal, which does not involve a developer or publisher.

Gaming Market Report: Aream & Co Q2 2025

Public Market Trends

Public markets have shown renewed strength, with activity in the first half of 2025 reaching a four-year high. There were 26 transactions, representing a 24 percent increase in deal count and a 134 percent rise in deal value compared to the previous year. Companies are increasingly using a range of financial instruments, including convertible bonds, share issuances, PIPE investments, and flexible credit lines.

The stock index covering major diversified gaming holdings such as Tencent, Sony, Nintendo, and Electronic Arts rose by 58 percent year-over-year during Q2 2025. Windows PC and console-focused developers including Capcom, Square Enix, CD Projekt Red, and Paradox Interactive saw a 38 percent increase over the same period. However, mobile developers showed more mixed performance. Asian companies such as Nexon, Krafton, NCSoft, and Netmarble posted modest growth of 2 percent, while Western developers like Playtika, MTG, and Stillfront experienced a 27 percent decline in stock value.

Valuations across the industry have diverged by segment. EBITDA multiples for PC and console developers are at historic highs, currently averaging 18 times earnings. Major holdings are trading at 15.4 times earnings. In contrast, mobile developers are seeing historic lows, with Asian companies at 10.6 times EBITDA and Western companies at just 5 times.

Despite these disparities, most gaming stocks are trading at 52-week highs, reflecting broader investor confidence. Interestingly, many PC and console firms saw limited revenue growth in Q1 2025, while mobile developers, despite weaker stock performance, posted stronger earnings. Nintendo, Capcom, and Take-Two are among the companies expected to attract significant investor interest through the end of 2026.

Gaming Market Report: Aream & Co Q2 2025

Venture Capital and Early-Stage Investments

Venture capital activity reached a five-year low in the first half of 2025. The total volume of investment was $800 million, representing a 77 percent year-over-year decline. This included 177 deals, the lowest number in the past five years. Early-stage funding continues to shrink, particularly outside of web3 and esports. There were 85 pre-seed and seed-stage deals totaling $400 million. Series A funding reached $200 million across 18 deals.

The most notable content-related funding rounds in Q2 2025 included $25 million raised by Bigger (Series A), $21 million by HYBE (Series B+), and $13.6 million by Amplitude Studios (Series A). In the platform and technology segment, Sett raised $15 million for AI-driven creative production, eloelo secured $13.5 million for its India-focused creator platform, and spAItial raised $13 million for its UGC platform.

Gaming Market Report: Aream & Co Q2 2025

Since 2020, over $2 billion has been invested in AI gaming startups, with 283 deals reported. Türkiye has emerged as a significant hub for early-stage gaming investment, with 113 deals totaling $800 million since 2020. In the past 18 months alone, the country recorded 28 deals, more than any other national market.

Another trend noted by Aream & Co. is the increasing use of external capital by companies to fund user acquisition strategies. Among the most active venture capital firms over the past 12 months are A16Z Games, Bitkraft, and Laton Ventures. By capital invested, Bitkraft led with $123 million, followed by A16Z Games at $107 million and Play Ventures at $98 million.

Gaming Market Report: Aream & Co Q2 2025

Outlook

The gaming market in Q2 2025 reflects a complex landscape. While M&A and public market activity have improved significantly, early-stage investment remains under pressure. Sector performance varies, with PC and console gaming leading in valuation, while mobile faces slower growth and investor skepticism. UGC and AI-related ventures continue to attract interest, and regional dynamics are shifting, with Türkiye gaining ground as a key destination for gaming startups. The overall outlook suggests a market in transition, with selective optimism depending on segment and strategy.