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The great gaming consolidation trundles on despite economic downturn

No, this isn’t a narrative spin from stakeholders. There’s actually a significant amount of cash being poured into the sector. In fact, the first half of the year has seen more than 651 deals announced or closed to the tune of $107 billion, according to investment bank Drake Star Partners. That compares to the 635 deals in the first half of 2021 that raked in $60 billion. It’s all the more impressive given investor skepticism over the long-term prospects of media businesses.

“Gaming is more resilient to a downturn because it’s the cheaper form of entertainment compared to streaming services and movies,” said Michael Metzger, a partner at Drake Star.

Wait a minute, isn’t the gaming market set to contract this year? 

That’s what the analysts are saying. Ampere believes the market will shrink 1.2% this year to $188 billion globally. Sobering as gaming’s comedown from two years of massive growth is, there’s…

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