Gaming Investments: 2025 Predictions
Written by our partner InvestGame. 2024 was a year of recovery and strategic recalibration for the gaming industry. After years of pandemic-related challenges and shifting market dynamics, the sector is gradually finding its footing. As demand for gaming fell post-COVID, many public companies struggled to demonstrate positive organic revenue growth (i.e. growth excluding revenue from recently acquired companies), often missing analyst expectations. Rising interest rates and broader macroeconomic uncertainty further affected valuations for publicly traded gaming firms, making company stock less attractive currency for new acquisitions. This led sellers of acquisition targets to prefer cash over buyers’ illiquid, risky, and typically depreciating stocks. Meanwhile, debt raised during the pandemic to finance acquisitions has become more expensive to service. Coupled with weaker organic performance, these factors tightened debt covenants and led numerous public strategic players to announce strategic reviews, lay off […]