Q1’26 was a strong quarter for gaming M&A with landmark deals like Paramount’s $110B acquisition of Warner Bros. Discovery, which included Warner Bros. Games, and Savvy Games’ $6B acquisition of Moonton. XR hardware was a dominant force in private financings with 3 deals that raised $100M or more. 2026 is also set to be a historic year for game releases with the highly anticipated release of GTA 6 expected to be the biggest launch of all time.
The Drake Star Global Gaming Report Q1 2026 analyzes Gaming and Esports dealmaking in the first quarter of 2026 and outlines what to expect for 2026 and beyond. Highlights include:
- Q1’26 gaming M&A hit a 15-month high with 51 deals and over $100B in disclosed value. Mobile led the activity, while the total valuation was driven by Paramount’s massive Warner Bros. Discovery deal, including Warner Bros. Games, and Savvy Games’ $6B acquisition of Moonton.
- Other notable deals included majority stake acquisitions by Scopely (Loom Games, valued at $1B+) and NCSOFT (JustPlay, $202M). Furthermore, Nazara acquired a controlling stake in Bluetile Games, Mattel bought out NetEase’s share in Mattel163, and Haveli agreed to acquire Budge Studios.
- In private financings, Q1’26 saw 106 deals with disclosed deal value totaling $785M. The 3 largest deals were in the AR / XR hardware category with RayNeo ($143M), Xreal ($100M), and VITURE ($100M). Other notable rounds include Ares Interactive ($70M), VAST ($50M), and ZBD ($40M).
- Over the last 12 months, Griffin Gaming, Play Ventures, and Arcadia topped large-fund activity, while Impact46, Merak, and ForsVC led at the seed stage. Tencent, Sony, and KRAFTON dominated strategic deals, with Arbitrum, Animoca, and TBV leading in blockchain.
- Public deals were headlined by massive refinancings from Light & Wonder ($2.13B) and Playtika ($500M). Hasbro added to the momentum by pricing $400M in new notes, while LY Corp. doubled down on Kakao Games with a $201M stake through equity and convertible debt
- The Drake Star Gaming Index rose significantly through mid-2025 before giving back those gains, ending about flat since the start of last year. Gaming stocks rallied in Q2/Q3’25, followed by a correction in Q4’25 and additional pressure from the broader market / software sell-off in Q1’26. PC and console companies, along with Asian publishers, significantly outperformed their mobile-focused and Western peers. Pearl Abyss led with a 149% gain, fueled by a strong Q1 2026 and the success of Crimson Desert.
Outlook
- We expect a robust M&A market with a healthy amount of mid-market deals and some big ticket deals for the rest of the year. We are hopeful that excitement about gaming equities will accelerate as we near the launch of GTA 6, likely the biggest game release ever, now targeted for Nov’26. Other highly anticipated games include Marvel’s Wolverine from Insomniac Games and 007 First Light from IO Interactive.
- Key strategics to watch include PIF/Scopely, KRAFTON, NCSoft, Tencent, MTG, Take-Two, Netflix, everplay, and Keywords Studios. We expect Private Equity to remain a major market catalyst, particularly as more publicly listed gaming firms become attractive targets for take-private transactions.
- AI, UGC, and tech platforms will stay at the forefront of investment, likely joined by a surge in AR activity. With studio equity still facing headwinds, project financing has become the primary path forward. Meanwhile, the rise of dedicated UA funds offers a new lifeline for mid-stage mobile studios looking to accelerate growth.
- All eyes are on the IPO pipeline as Discord and PlaySimple gear up for potential public offerings.
Download the full report below.