Blockchain Boosts Record Dealmaking In Game Industry

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Investments, IPOs, M&A and other transactions in video games, especially for blockchain-related companies, set more records in Q1, boosted by interest from non-traditional investors in blockchain-based game companies and technologies.

Even amid a softening economy, dealmaking in the videogame sector has continued at a breathless pace, setting another record for number of transactions in 2022’s first quarter thanks in part to interest in blockchain-based technology and titles, according to the Games Investment Review from game-industry consultant“We’re having trouble coming up with new superlatives for a record-breaking quarter,” the DDM report says.

Mergers & Acquisitions activity was also humming along, with four transactions of more than $1 billion in value, and $7.9 billion in 84 total deals. Together, investments and M&A deals totaled $11.4 billion for the quarter.The $3.

“What has been clear is that companies whose gaming projects incorporate play-to-earn mechanics, tokens and/or NFTs continue to drive investments,” the report says. “The varied nature of their deals and offerings of equity, tokens and/or NFTs have changed how gaming companies can raise investments.” and most other major cryptocurrencies, sliding alongside most of the stock market. Using blockchain-related technologies remains controversial with a notable slice of the vast game-playing audience, despite considerable enthusiasm from investors and many companies’ top executives.Initial Public Offerings, or IPOs were down notably from the previous quarter, “in what feels similar to pre-COVID levels and is an unusual departure from recent quarters,” according to DDM.

 

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