According to a report from venture capital firm Konvoy, publicly listed gaming companies, including Activision Blizzard, Electronic Arts, Nintendo, and others, currently hold a staggering $45.1 billion in cash and cash equivalents. This substantial cash reserve could potentially lead to further consolidation within the $188 billion video games industry. The report also highlights that gaming firms are focused on engaging gamers for longer durations through live-service games, subscription packages, and cloud gaming. Despite a 64% slump in venture capital investment in the third quarter of 2023, Konvoy expects the Microsoft-Activision deal to spur mergers and acquisitions and create new gaming companies. The report also notes that big tech firms like Amazon, Microsoft, Google, and Apple have a combined $229.4 billion to potentially invest in gaming deals. Overall, while 2023 has seen a slowdown in investment, the gaming industry is projected to grow steadily with a compound annual growth rate of 9% in the next five years, reaching $288 billion in sales by 2028.
Unlocking the Fortune: Public Gaming Giants Hoard Mind-Blowing $45 Billion Cash Stash, Reveals Konvoy
