Spatial computing and AI expanded beyond gaming, driving investments in healthcare, automotive, and industrial training. VR is gaining traction again, with Meta, Google, and Apple pushing the next wave of immersive tech. Strategic investors are returning, fueling M&A and IPO activity as studios look to stay competitive.
Meanwhile, game-tech is crossing into sports and fitness, with AI-driven wearables like CarvSki showing how real-world activities can be gamified. The gaming industry is evolving fast, and 2025 is shaping up to be another big year for innovation.
2024 saw a strong comeback for game investments, bouncing 38% higher to $4.3 billion, though still below the $10B+ peak of 2022. The U.S. dominated funding, while Europe held its ground despite a decline in some areas.
Spatial computing and AI expanded beyond gaming, driving investments in healthcare, automotive, and industrial training. VR is gaining traction again, with Meta, Google, and Apple pushing the next wave of immersive tech.
Strategic investors are returning, fueling M&A and IPO activity as studios look to stay competitive.
Meanwhile, game-tech is crossing into sports and fitness, with AI-driven wearables like CarvSki showing how real-world activities can be gamified. The gaming industry is evolving fast, and 2025 is shaping up to be another big year for innovation.
The 2024 game investment data comes from Hiro Capital, a gaming venture capital firm, which analyzed figures from Dealroom, a well-known data platform for startups and investments. The report was shared by Luke Alvarez, Hiro Capital’s founding managing partner, in an interview with GamesBeat. The insights cover global investment trends, regional breakdowns, and emerging technologies shaping the gaming industry.
Overview of 2024 Game Investments
Big rebound for gaming investments in 2024. Global game investment jumped 38%, from $3.1 billion in 2023 to $4.3 billion in 2024. If you zoom out to games, mixed reality, and sports tech, the total investment crossed $10 billion.
Even with a broader funding slowdown, gaming proved resilient. The sector is recovering from 2023’s dip, and while we’re still below the $10B+ peak of 2022, there’s clear momentum. Quality studios, innovative tech, and the right investments are leading the charge.
2. Regional Investment Trends
2.1 United States
The U.S. dominated gaming investments in 2024. Total investment nearly tripled, jumping from $1 billion in 2023 to $2.9 billion. The biggest highlight? Epic Games raised $1.5 billion — more than the entire U.S. gaming investment total in 2023 ($1.1B).
The U.S. remains the powerhouse of gaming investment, attracting the biggest deals and pushing the industry forward.
2.2 Europe & United Kingdom
Europe and the U.K. are holding strong but still lagging behind the U.S. in overall value.
- European & U.K. gaming industry valuation: $197.4 billion, employing 271,000 people.
- U.S. gaming industry valuation: $3.8 trillion, with 330,000 employees.
- Gaming unicorns: U.S. (34), Europe (31) — a close gap, showing Europe’s strength despite fewer resources.
The U.K. saw a 15% drop in game investments, falling to $313 million, but Build a Rocket Boy raised a solid $110 million (Series D) — proof that investors are still betting on the right teams.
Europe may not have the sheer scale of the U.S., but strong studios and high-value deals keep it in the game.
3. Spatial Computing & AI Investments
Spatial computing and AI had a mixed year in 2024. Total investment dropped 20% to $4.5 billion, but there were some standout regions and sectors.
- The U.K. saw a massive 141% surge, with investments hitting $2.2 billion.
- The U.S. still led the space, pulling in $3.1 billion in deals.
What’s driving this? VR, AR, and AI are breaking out of gaming and finding real traction in healthcare, automotive, and industrial training. The future isn’t just about entertainment — it’s about how immersive tech changes industries.
4. Game Investment Recovery Trends
Game investments have been on a rollercoaster the past few years:
- 2022: Peaked at $10+ billion.
- 2023: Crashed to $3.1 billion.
- 2024: Bounced back to $4.3 billion, but still below the 2022 high.
The recovery was driven by late-stage private deals, with Build A Rocket Boy and Infinite Reality pulling in major funding.
On the game side, indie hits proved that innovation still wins. Palworld, Helldivers II, and Enshrouded (Keen Games) all showed that players are hungry for fresh ideas and engaging gameplay — not just big-budget franchises.
5. Market Adjustments & Industry Challenges
2024 was a correction year for the industry. After the post-pandemic hiring spree, many studios had to cut back, leading to layoffs across the sector. High burn rates caught up with companies that had scaled too aggressively.
Esports had a tough time, but there were bright spots — Team Liquid doubled its revenue and became profitable, proving that strong business models can survive even in struggling sectors.
For indie developers, competition was fiercer than ever, but the ones that nailed gameplay and innovation still broke through. The success of Palworld, Helldivers II, and Enshrouded showed that there’s always room for great games.
6. Emerging Trends in Gaming & Technology
6.1 Virtual Reality & Immersive Social Gaming
VR is making a comeback, driven by Gen Z and Gen Alpha, who are embracing immersive digital spaces.
- Meta’s Horizon VR & Gorilla Tag are shaping up to be the next-gen 3D social networks.
- Google & Samsung are set to launch Android XR devices in 2025, adding more competition to the space.
- Meta & Apple are expected to release new VR hardware, keeping the momentum going.
The takeaway? VR and spatial computing are evolving from niche gaming tech into mainstream social experiences.
6.2 Mergers & Acquisitions (M&A) and IPOs
- Strategic investors are back in the game after sitting out the downturn.
- With some studios facing empty pipelines for late 2025–2026, expect more acquisitions as companies buy their way into relevance.
Deals will be smarter and more selective, with investors looking for studios that have strong engagement and solid retention metrics.
6.3 Games & Sports Tech Integration
- CarvSki is leading the charge in AI-driven sports tech, offering real-time skiing feedback through a wearable tracker.
- Gamification of physical activities is growing fast, with AI and wearable tech making real-world sports feel more like games.
The future of gaming isn’t just digital — it’s blending with sports, fitness, and real-world activities. Expect more innovation at the intersection of gaming, AI, and wearables.
7. Recovery Year For Game Investments
2024 was a recovery year for game investments, with a 38% increase, but we’re still not back to the 2022 highs. The industry is stabilizing, and the focus is shifting toward quality investments in high-potential companies.
- The U.S. remains the dominant force in gaming investments, while Europe continues to hold a strong position despite a lower enterprise value.
- Spatial computing & AI are expanding beyond gaming, influencing healthcare, automotive, and industrial training.
- VR, social gaming, and the fusion of game tech with AI and sports are shaping up as major growth drivers for 2025.
The takeaway? The industry is evolving fast. The next wave of innovation will come from immersive experiences, AI-driven interactions, and gaming’s crossover into real-world applications.
