Despite the downturn, several key tailwinds suggest potential growth. The next generation of consumers is heavily engaged in gaming, with over 90% of 13 to 17-year-olds playing weekly. Gaming's value is recognized across various industries, and emerging markets in Latin America, India, and Africa could bring another billion consumers into the fold. New funds and specialist investors continue to emerge, and upcoming releases like Grand Theft Auto VI and new console generations are expected to attract more investment.
Key takeaways:
- The number of active investors in gaming has significantly decreased since the COVID-19 pandemic, with a continued decline expected in 2025, indicating the sector is underinvested relative to its market capitalization.
- Despite the current investment downturn, the gaming industry is seen as underinvested compared to its global market cap, with only $1.5 billion to $4 billion invested annually, excluding outlier years.
- Several new funds and specialist investors have emerged to support the gaming sector, including Andreessen Horowitz, Bitkraft, and Griffin Gaming Partners, indicating ongoing interest in the industry.
- Key growth drivers for the gaming industry include the next generation of consumers, the integration of gaming into various sectors, and emerging markets, which are expected to attract more investors in the future.