Q1 2023 saw the gaming market struggle somewhat in terms of investments and mergers and acquisitions, with a combined total of $1.2 billion, according to DDM Agency analysis. Of this, $415 million came from M&A, across 40 transactions at an average value of $10.375 million.

With a total of $755.2 million in investments across 144 transactions, with an average deal value of $5.244 million, making Q1 2023 the lowest quarter value since Q3 2018, which saw a total of $635.8 million, and indicates that the market is cooling considerably following the unprecedented “Covid-boom”.

The results for Q1 saw significant quarter-on-quarter declines in both investments and M&A activity. Investments fell 40.7% from $1.3 billion over 171 deals, at an average deal value of $7.602 million. Mergers and acquisitions, meanwhile, fell 91.9% from $5.1 billion in Q4 2022 over 61 deals, at an average deal value of $83.606 million, resulting in the second lowest Q1 for M&A in over fourteen years, and the third lowest quarter for exits in the same period. As such, it’s possible the actual figure is higher.

It should be noted, however, that 93% of the M&A deals struck during the quarter came at an undisclosed fee.

The state of mobile

Mobile accounted for 15% of games investments by value in Q1 2023, or around $116.28 billion. Additionally, the platform made up 21% of investments by volume, or around 30.

Despite this low percentage, mobile proved popular among some of the top active investors of the quarter. Magic Eden ($17.5 million invested over ten rounds), BITKRAFT Ventures ($82.6 invested over six rounds) and Play Ventures ($30.1 million invested over five rounds) all had mobile among their top segments.

Our regular feature examines the biggest deals of each month. To see what caused a stir in July, click here.