The video game industry is experiencing a surge in mergers and acquisitions, with Q2 2026 reportedly seeing a staggering US$2.3 billion in deals, according to Aream & Co's Video Game Market Update. This figure represents a significant jump from the previous year, with 54 transactions taking place, many of which have been kept under wraps. The report highlights a post-pandemic high in dealmaking, mirroring the Covid-era boom, with mid-market gaming content acquisitions driving this growth. The biggest transaction was the US$1 billion acquisition of Loom Games by Scopely, a mobile-first game studio owned by the Saudi Arabian government. Other notable deals include the acquisition of Playstack by Integrated Media Company and several major deals in the mobile market.
Private investment is also on the rise, with year-on-year results up six times, driven by interest in AdTech and gaming AI 'mega-rounds'. Companies like AppsFlyer, General Intuition, Odyssey, and Decart are benefiting from these investments. Aream & Co's analysis also reveals other trends in the global games industry.
PC gaming on Steam remains a strong segment, with spending up 13% year-on-year, reaching US$5.5 billion. Franchise sequels like 007: First Light, Subnautica 2, and Forza Horizon 6 have driven engagement. New IP is also growing swiftly, with the release of Capcom's Pragmata, indie multiplayer game Meccha Chameleon, and the popular PvE pirate survival adventure, Windrose. Nintendo's revenue rose 90% year-on-year due to the Nintendo Switch 2 and its associated games.
However, PlayStation and Xbox revenues are facing a downturn. PlayStation revenue fell 5% due to a slowdown in hardware, likely caused by price rises and the aging of its console systems. Xbox revenue declined 7%, with a 33% drop in hardware and a 5% decrease in content and services. Despite these challenges, the video game industry remains big business, with select investors still seeing value overall.
In Australia, consumer sales for video games rose 12% in 2025, accounting for over $4.2 billion in spending. Digital video game sales accounted for $1.42 billion, with the majority spent on in-game purchases. The IGEA report predicts sustained growth of 4.8% between 2025 and 2028, highlighting Australians' passion for playing video games across all formats. This trend is significant, with digital sales remaining the highest-performing category, while traditional retail sales also saw growth.
The video game industry is evolving, with mergers and acquisitions, private investments, and shifting areas of interest. While some companies face challenges, the overall industry remains robust, with investors still seeing value. The future of gaming looks bright, with new technologies and trends shaping the industry's trajectory.
