If 2023–24 felt like a reset for games, 2025 is the rebound. Public gaming stocks are outpacing the broader market, dealmaking is thawing, and fresh capital is flowing into mobile, tools, and AI. Below, we unpack seven investor-ready trends drawn from Drake Star’s Q2 2025 Global Gaming Report—and what they signal for studios, platforms, and the player economy.
1) Public gaming is beating the market again
After a rocky cycle, listed gaming companies roared back in 1H 2025. Drake Star’s equal-weighted Gaming Index climbed ~28% year-to-date vs. ~5% for the S&P 500, with standouts across Japan (Square Enix, Konami), the U.S. (Roblox, Corsair, Take-Two), and Europe (CD PROJEKT, MTG). Regional and platform slices show broad strength: PC/console +34.6%, Asia +33.2%, Mobile +22.5%.
Why it matters: Sentiment is improving and multiples are normalizing. For operators, a healthier public market often unlocks cheaper capital, talent confidence, and more fertile M&A.
2) Dealmaking is thawing—expect a busier 2025–26
The pace isn’t 2021-style exuberance, but Q2 2025 logged 46 announced M&A deals with ~$579M in disclosed value. Drake Star expects a new wave of M&A through 2025–26 as companies leverage higher equity valuations. IPO talk is also back on the table as broader markets stabilize.
Notable prints illustrate the range:
KRAFTON → ADK for ~$516M, signaling a push beyond games into animation/advertising.
Apple → RAC7, a studio behind Sneaky Sasquatch (Apple’s first game-studio acquisition).
Epic Games → Loci, an AI computer-vision firm for tagging 3D assets (creator/discovery play).
PlayVS roll-up of Generation Esports & PlayFly College Esports (K-12 to college stack).
Why it matters: Consolidation tends to standardize tech stacks and distribution—fertile ground for platforms that already aggregate large, transactable communities.
3) Private capital is flowing again—especially to mobile and “picks & shovels”
110 private placements totaling ~$3.0B were recorded in Q2 2025, headlined by Dream Games (equity + debt ~$2.5B at a ~$5B valuation)—one of the largest recent VC exits in gaming. Other rounds spanned mobile studios, esports infrastructure, and AI.
A snapshot of the quarter:
Tencent → Arrowhead (Helldivers 2): $80M for 15.75%, valuing the studio $500M+.
Bigger Games: $25M Series A to scale Kitchen Masters.
Sett (AI): $27M to generate UA video creative with AI.
Why it matters: Late-stage financing can still be tricky, but high-signal assets—scaled mobile, tooling, and platforms—are attracting large checks.
4) Tooling & AI are the quiet growth engines
Two of the most strategic Q2 moves targeted the creator and monetization stack:
Epic × Loci: integrating AI tagging to improve 3D content discoverability and streamline creator workflows.
Xsolla × Ludo: adding no-code engagement tools to boost retention and monetization across web shops and services.
Why it matters: As UGC and live-ops deepen, the volume of assets (cosmetics, mods, maps) climbs. Platforms that help creators build, organize, and monetize—and help players discover and purchase—sit at the center of the flywheel.
5) Transmedia & ecosystem plays are back in focus
KRAFTON’s ADK deal wasn’t just price—it was positioning. Buying an advertising/animation house signals a strategy to stretch IP beyond games into formats that amplify reach and lifetime value. Sony’s consolidation of its China PlayStation JV underscores long-term platform distribution ambitions in growth markets.
Why it matters: Expect more “IP everywhere” moves and infrastructure buys as publishers seek resilient revenue across games, shows, subs, and commerce.
6) Geography & platforms: Asia leads, PC/console pops, mobile endures
By region, Asia-focused names rose ~33% YTD vs. ~21% in the West. By platform, PC/console outperformed (~34.6%), but mobile remains durable (~22.5%), supported by landmark transactions (Dream Games) and steady funding.
Why it matters: Diversify exposure. The pendulum swings between PC/console “events” and mobile “compounding,” but both cohorts are participating in the rebound.
7) The player economy is getting bigger—and more organized
As tooling improves and transmedia expands, player spending is fragmenting across more items, passes, and services. That fragmentation actually increases the value of trusted marketplaces that aggregate supply and demand across geographies, platforms, and price points.
Esports consolidation (e.g., PlayVS unifying K-12 through college) is one example of demand aggregation.
Platform moves (e.g., Sony’s China JV consolidation) widen reach for content pipelines that ultimately flow into in-game items and subscriptions.
Why it matters: Follow the rails. Companies that make it safer and easier to buy, sell, gift, and redeem digital goods benefit as the catalog of tradable content grows.
What this means for founders, investors—and Gameflip
Founders: Your buyers are back. With public comps recovering and strategics active, the bar remains high, but the path to exits is clearer—especially if you’re building infrastructure (payments, discovery, UGC tools) or sticky mobile properties.
Investors: Balance exposure across scaled mobile, PC/console hits, and tooling/AI. Watch for IPO re-openings and PE take-privates as 2025–26 unfolds.
Gameflip’s lens: As players embrace more digital items, gift cards, keys, and cosmetic economies, a neutral marketplace helps them save money, discover content, and transact safely—while giving sellers (from power users to professional shops) an audience. The rebound and renewed deal flow point to larger catalogs and more cross-border demand—exactly the dynamics marketplaces are built to serve.
Quick data recap (Q2 2025)
46 M&A deals; largest: KRAFTON–ADK ~$516M.
110 private placements totaling ~$3.0B, led by Dream Games ~$2.5B at ~$5B valuation.
Public market outperformance: Gaming Index ~28% vs. S&P ~5% in 1H 2025; PC/console +34.6%, Asia +33.2%, Mobile +22.5%.
Strategic themes: AI/UGC tagging (Epic–Loci), player-monetization tooling (Xsolla–Ludo), transmedia (KRAFTON–ADK), platform distribution (Sony China JV).
Final word
The 2025 gaming market looks healthier, broader, and more investable than it did a year ago. Capital is returning with discipline; platforms and tools are quietly compounding; and IP is stretching across screens and formats. For players and creators, that means more choice. For investors, it’s a reminder: when the ecosystem gets bigger and more connected, in-game economies and the marketplaces that support them often become the durable picks-and-shovels.
Sources: Drake Star, “Global Gaming Report – Q2 2025.”
