Summary

  • US gaming VC activity has settled post-pandemic, according to data from PitchBook seen by VentureBeat.
  • In Q1 2025, deal activity totalled $1.2bn across 134 deals, a quarterly decline of 3% and the lowest number of deals since 2019.
  • Investors are becoming more discerning and focusing on innovations in distribution as they await the industry’s next platform shift.
  • While quarterly exit activity was disappointing, generating $128m in disclosed exit value across 13 deals, there are bright spots, with investment in gaming infrastructure and AI platforms increasing.
  • In a broader analysis, pre-seed and seed gaming VC activity continues to face pressure, while late-stage activity is becoming more stable.
  • The US presidential tariff plans and the economic bifurcation of the country have also impacted the industry, with both Nintendo and Sony impacted by the tariffs and the latter also affected by the economic divide with its 80 Mario Kart World game.

By Dean Takahashi

Original Article