Gaming Market Trends Q2 2025

Konvoy’s Q2 2025 report provides a detailed overview of the gaming industry’s current landscape, covering market performance, venture capital (VC) trends, and the evolving dynamics shaping the future of the sector. With a focus on investment activity, regional comparisons, and regulatory developments, the report offers insights into the gaming market’s trajectory amid broader shifts in digital advertising and platform ecosystems.

Global Gaming Market Overview

The global gaming market is projected to reach $196 billion in 2026, reflecting a 3.7% year-over-year growth. Despite ongoing innovation and engagement from players worldwide, the investment environment remains cautious, especially in venture capital activity.

Gaming Market Trends Q2 2025

VC Funding Trends

Venture capital investment in gaming dropped significantly in Q2 2025. Total VC funding reached $193 million - a 47% decline quarter-over-quarter and a 62% decline year-over-year. Only 60 deals were completed during the quarter, representing a 13% drop from the previous quarter and a 55% decrease compared to the same period last year. These figures highlight a notable pullback in investor appetite, pointing to a broader recalibration of risk and expectations in the gaming sector.

Gaming Market Trends Q2 2025

Regional Analysis: US vs China

Regional disparities in gamer spending and startup activity are evident. In 2024:

The United States accounted for only 6.4% of global gamers but contributed 26% of total gaming revenue.
China, by comparison, made up 20.5% of global gamers and also generated 26% of global revenue.

This contrast is further emphasized by user spending patterns. The average US gamer spends 3.1 times more annually on games compared to the average gamer in China.

In terms of venture capital, US-based gaming startups have attracted 7.7 times more funding than those in China since 2021. Additionally, the number of VC-backed gaming startups in the US exceeds China’s by more than fivefold, reinforcing the US's dominance in both monetization and startup investment.

Gaming Market Trends Q2 2025

VC Activity in Europe

Europe recorded $113 million in VC funding for gaming companies in Q2 2025. A notable trend this quarter was a shift from Series A to Seed-stage investments, suggesting a renewed focus on early-stage ventures. Game studios attracted the majority of funding, accounting for 79% of all VC investment in the region for the year. This trend indicates confidence in content creation and IP development within the European market.

Industry Consolidation and M&A

Merger and acquisition activity continues to point toward industry consolidation. A notable example is the combination of Tripledot and Applovin Games. Konvoy views this trend as a sign of the sector’s move toward more sustainable business models, operational efficiency, and strategic scale. The exits of Dream Games and others signal that private markets remain confident in gaming’s long-term value.

Gaming Market Trends Q2 2025

Legal and Regulatory Developments

Google Ad Monopoly Ruling

A recent court ruling found that Google holds a monopoly in the digital advertising market. Although specific remedies have yet to be determined, the outcome is expected to reshape the ad tech landscape. With in-game advertising currently valued at $8.7 billion, this ruling could introduce new opportunities for gaming-focused ad platforms to compete more fairly. Konvoy suggests that developers begin reviewing their advertising dependencies and consider diversifying beyond Google to stay competitive in a changing ad ecosystem.

Apple’s App Store Ruling

Another major shift comes from a court decision weakening Apple’s control over in-app purchases. Previously, Apple’s Services segment (including App Store commissions) accounted for 38% of the company’s operating profit. With developers now allowed to use third-party payment systems charging 2–5% processing fees instead of Apple’s standard 30% cut, this change may significantly improve developer margins and cost structures.

Gaming Market Trends Q2 2025

Platform Developments and Product News

Roblox’s Rewarded Video Ads

Roblox has introduced rewarded video ads with promising initial results. The ads show over 80% completion rates and 87% positive user sentiment. According to Konvoy, this approach to opt-in, reward-driven advertising is seen as an additive experience for players. The move is aligned with Roblox’s broader strategy to enhance sustainability for its platform, developers, and player ecosystem.

GTA VI Delay Impact

The delay of Grand Theft Auto VI has had a measurable impact on the industry. The game, developed by Take-Two Interactive, was expected to contribute significantly to 2025 revenues. Its absence represents an estimated $2 billion shortfall. Despite the delay, Take-Two plans to invest approximately $2 billion in developing GTA VI - considerably more than the $254 million spent on GTA V. At an $80 price point and with potential upselling into subscriptions, Konvoy expects Take-Two to recover its development costs within 30 days post-release.

Gaming Market Trends Q2 2025

Conclusion

The gaming industry in Q2 2025 is marked by a slowdown in venture capital activity, shifting platform economics, and increased legal scrutiny of dominant digital platforms. While challenges such as delayed flagship releases and reduced funding levels persist, broader trends point toward the sector's maturation. Konvoy concludes that the industry is moving toward more sustainable business models and strategic positioning, with liquidity events and structural changes paving the way for long-term growth.