Game startup revenue fell in Q4 2024 | Convoy

Convoy recently released its latest Report on Gaming Industry, which covers gaming revenue through the latest fiscal quarter – currently, Q4 2024. According to Konvoy’s report, the gaming industry is expected to finish 2024 as a business of $188 billion, a growth that is expected to put. at $223 billion by the year 2029. However, most of the report indicates that there was not much in the way of initial investment related to sports, or there is an increase in mergers and acquisitions in this sector.

One of the key takeaways from Konvoy’s report was that spending on games or gaming companies fell in Q4. According to the report, $286 million in investment funds went to gaming, the lowest quarterly revenue in five years and a 47% quarter-over-quarter drop. Much of the decline appears to be due to growth costs. There were also 83 VC practices in the game, down 25% QoQ, and a decrease in startups.

Konvoy also noted that there has been a decline in startups graduating from the seed stage to Series A. Only 11.5% of startups that have raised seed as of Q1 2018 have gone on to raise Series A within two years. . It’s less than the 20-30% success rate of other startups. This number has also decreased in recent years: The number of graduates of the first courses that have raised seed money since Q4 2021 has dropped to 4%.

In the last quarter’s report, Konvoy saw an increase in the amount of money that goes to AI-based game startups. This number appears to have dropped in Q4, with 10% of funding going to such startups, as opposed to Q3’s 22%. Other insights from the report show the sales of the Nintendo Switch against its competitors, the PlayStation 5 and Xbox Series X/S; and increased scrutiny of the fitness industry to protect their children.

The full Konvoy Sports Performance report includes regional information and is now available on the company’s website.