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Gaming Industry Surges to $7.8 Billion in Q1 2025, Driven by AI and Blockchain

The sector records its strongest quarter since late 2023, with AI investments skyrocketing 2,288% and major deals like Sterling Select’s $3 billion stake in Infinite Reality leading the recovery.

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Overview

  • The video game industry achieved $7.8 billion in combined investments and M&A during Q1 2025, the largest quarterly growth since Q4 2023.
  • AI investments reached $3.1 billion, marking a 2,288% increase in value and a 14% rise in volume compared to Q3 2024.
  • Blockchain-related investments totaled $372.2 million, reflecting a 74% growth in value despite a 50% drop in transaction volume.
  • M&A activity rose to 55 transactions, the highest volume since 2022, though total value declined by 34% to $3.3 billion due to undisclosed deal terms.
  • Sterling Select’s $3 billion investment in Infinite Reality, a leader in AI and extended reality, was a key driver of the quarter’s financial rebound.