PC and console gaming are diverging, and most of the industry is pricing them the same. Newzoo's full-year 2025 data makes the split hard to ignore: PC rewards new creators, console rewards incumbent franchises. That asymmetry has direct implications for where early-stage capital should go.

With a tumultuous 2022 in the rear view, it is an opportune time to reflect on the past year and look ahead to what's in store for digital entertainment. The secular trends underpinning the decades-long evolution and expansion of the game industry remain intact despite substantial macroeconomic headwinds. This may be cold comfort against the current backdrop of geopolitical and fiscal uncertainty, layoffs, and challenging revenue growth. Still, game industry M&A deal value i