adminVideo game investment and M&A trends for 2026 point to a cautiously improving market. Investors still face a risk-averse environment and funding can be difficult to secure, but acquisition discussions are becoming more active. Industry investors identify several forces shaping the year: Korean companies’ continued dealmaking, demand for established game catalogues, a shortage of new content and stronger expectations around audience traction.
These takeaways come from a panel at Pocket Gamer Connects London featuring Alina Soltys of Quantum Tech Partners, Bibbi Wikman of PlayCap, Sikander Chahal of Transcend Fund, Phil Mansell of The Games Angels and Shum Singh of Agnitio Capital.
Image credit: Pocket Gamer Connects London
Video game investment and M&A trends for 2026
Panelists see room for acquisition activity to recover, although the market remains selective. Alina Soltys noted that the $55 billion EA deal announced the previous year could encourage confidence and draw more attention to games as an investment sector.
Activity reported for the final quarter of 2025 was much lower: investment bank Aream & Co recorded $500 million in video game M&A, an 89% year-on-year decline. However, reported deal figures can lag behind current conditions because transactions may take months or, in some cases, up to a year to close. Soltys said the start of 2026 had brought more transaction activity into view.
She highlighted three factors that may support deals: some studios have continued to perform well despite industry pressures; potential buyers have capital available for growth; and the gap between buyers’ and sellers’ valuation expectations has narrowed from the unusually wide post-COVID period. For studio owners, this makes it useful to keep financial and operational information ready, while recognizing that a stronger market does not guarantee a deal.
Funding is shifting beyond traditional equity
Investors remain cautious about funding game content through equity, except in standout cases. Phil Mansell described a broader mix of financing options, including user acquisition financing, project financing and last-mile financing. Founders may also explore non-dilutive funding or government assistance where available.
These alternatives matter to independent developers because selling equity can reduce a founder’s ownership and influence over product decisions and release plans. Bibbi Wikman recommended approaching investors once a team can show that an audience is interested. Sikander Chahal added that the bar for funding has risen: a strong concept or experienced team may no longer be enough without evidence of traction or other external validation.
Practical takeaway: Before pitching, gather concrete signals of demand, such as audience engagement or other evidence that supports the project’s potential. The panel did not suggest that any single funding route is right for every studio.
Korean firms remain active in acquisitions
Panelists described Korean game companies as consistent investors over the past two years, including during periods when many others paused to reassess. One example discussed was NCSoft’s acquisition of Vietnam-based casual games maker Lihuhu. Korean firms may begin with smaller publishing agreements and consider a larger acquisition or strategic partnership if the relationship performs well.
Krafton had also said that it had 26 games in its pipeline. By contrast, Singh described Japanese firms as noticeably less active in the discussions he had seen. For studios considering international partnerships, a smaller publishing deal can offer an initial way to build a relationship before exploring a broader transaction.
The content gap is creating demand for games sooner
Reduced funding after the COVID-era highs has contributed to a shortage of new games moving through development. Soltys said companies are looking for projects they can bring to market within 12 to 18 months, rather than waiting three or four years for a quality game.
This need may lead to more publishing agreements as well as acquisitions. Strategic buyers have to decide whether publishing a project or purchasing a company or its assets better fits their objectives. Developers planning a release should be clear about what can realistically be delivered within the expected timeline.
Back catalogues can strengthen a deal
In the mid-market, particularly in Europe, acquisitions may focus on intellectual property or a back catalogue rather than buying an entire studio and team. Private equity firms may value a catalogue because it can provide a recurring revenue base to assess. One method used to estimate value is discounted cash flow, or DCF, which analyses expected future cash flows.
Soltys advised studios with older games to consider how they can keep those titles operating. A maintained catalogue may continue to contribute revenue and could be useful if a future transaction is explored. Practical steps depend on the game, but teams can review ongoing support needs and whether keeping a title available makes commercial sense.
Investors want innovation and closer player relationships
Wikman pointed to distribution, user acquisition and community building as areas where companies are seeking new approaches. Chahal highlighted potential uses of AI in team operations, game products and live operations, while noting that developers should be able to explain their choices. Using AI is not presented as a requirement; the important point is to understand whether and why it suits a particular business or product.
Soltys also stressed the value of direct relationships with players. Direct-to-consumer payment systems can help developers interact with audiences, focus marketing and understand what is working. In a cautious funding climate, visible audience interest can support both product decisions and investor conversations.
GTA 6 could lift attention across the sector
Chahal saw the outlook as better than the previous year, while recognizing that investment remains sensitive to economic conditions, including interest rates. He also suggested that major releases such as GTA 6 can bring games into wider public conversation. Greater attention may benefit the industry as a whole, although it does not remove the need for sound funding plans or evidence of demand.
What studios can take from the 2026 trends
Overall, video game investment and M&A trends for 2026 suggest a market with more deal discussions but careful investors. Studios can prepare by demonstrating audience traction, considering funding beyond traditional equity, maintaining valuable older games and building direct connections with players. These steps do not guarantee financing or an acquisition, but they can help teams present a clearer case as publishers and buyers assess opportunities.
