Powering Play: Leaders Defining the New Age of Gaming | Global Conference 2025

Market Consolidation & M&A Landscape

• Q1 2025 gaming M&A disclosed deal value rebounded to $4.4 billion, the highest figure in nearly two years.
• Deal volume increased from 33 deals in Q3 2023 to 48 deals in Q1 2025, indicating a steady post-pandemic recovery.
• Primary deal drivers include public company growth mandates, access to new IP, and strategic pivots away from content (e.g., AppLovin divesting its games group).
• Embracer Group initiated a "reverse consolidation" cycle, selling off subsidiaries to fund independence after over-acquiring.
• Netflix has emerged as a significant new acquirer, joining tech giants as a consolidator in the gaming space.
• Non-gaming entertainment companies are increasingly investing in gaming to secure IP that can fuel transmedia expansion (books, film, merchandise).
• The industry is moving away from pure P&L-driven consolidation toward strategic acquisitions targeting specific markets (e.g., Asian buyers seeking Western IP access).
• Over-investment in large budgets without adequate community-building runway led to recent "reckonings" where successful development was undermined by poor timing.

IP Strategy & Transmedia Integration

• Disney and Epic Games formed a historic partnership to leverage IP across converged experiences, utilizing Unreal Engine for games, theme parks, and linear film/TV production.
• Disney's strategy prioritizes empowering external creators (e.g., Todd Howard/Machine Games on Indiana Jones) to tell original stories rather than dictating narrative.
• Bad Robot Games is prioritizing original IP creation first to build authentic worlds, reserving licensed IP for future projects where the team has established a foundation of "fun."
• Successful transmedia adaptations (e.g., The Last of Us, Fallout) rely on creators demonstrating deep reverence for the source material rather than using IP purely for marketing.
• Michael Metzger noted that dual approaches—developing original IP while licensing established IP for organic traffic—are a key strategy for mobile studios facing user acquisition costs.
• Sean Shapiro emphasized that "converged experiences" within platforms like Fortnite allow for linear content, social expression, and user-generated content (UGC) to coexist.

AI as a Catalyst for Creation & Democratization

• Drew Katsaoka describes the current AI era as the "Shopify moment" for game creation, democratizing world-building and blurring the line between player and developer.
• AI tools (e.g., Unreal MetaHuman, Unity Muse, Scenario, InWorld) allow small studios to produce extraordinary assets with minimal budgets, while large studios use AI to scale capital-intensive franchise work.
• Gregory Milken reports that AI is accelerating development cycles (reducing timelines from 6 months to 1 month) but has not yet significantly altered milestone planning or burn rates.
• Startups are reducing headcount needs by leveraging AI for asset generation, though the "one-person AI unicorn" or $100M franchise by a solo developer is viewed as an imminent possibility.
• Katsaoka warns of inconsistent copyright protections, noting AI platforms are ingesting artist data without compensation while restricting the generation of public domain styles (e.g., Da Vinci), suggesting future litigation and royalty negotiations will emerge.
• Panelists recommend "vibe coding" and training custom visual models (LoRA) as essential skills for understanding the future of gaming.

Platform Dynamics & User-Generated Content (UGC)

• UGC has evolved from a niche feature to a primary revenue driver via creator payout programs on Roblox, Fortnite, and Minecraft.
• Michael Metzger highlighted recent consolidation in the UGC space, specifically Voltex acquiring Brookhaven on Roblox.
• Building a new successful platform is a 7–10 year endeavor; success typically stems from solving a specific community problem (e.g., Counter-Strike version control for Steam) before pivoting to a platform model.
• Disney is focusing on "shorter form" and creator-led experiences within the Fortnite ecosystem as a critical future avenue for storytelling.
• Drew Katsaoka predicts a future where players trade "LoRA packs" (customized character styles) as a monetizable asset class.

Forward-Looking Predictions (2030 Outlook)

• Drew Katsaoka: Linear entertainment will be completely subsumed by gaming, with immersive, interactive experiences replacing passive viewing.
• Michael Metzger: By 2030, the single largest global IP across all media will originate as a video game.
• Gregory Milken: Traditional media companies will appoint CEOs specifically based on their gaming expertise and experience.
• Anna Sweet: A billion-dollar IP will be created by a team of five or fewer people using AI tools.
• Sean Shapiro: Artificial Intelligence will finally "meet the moment," fulfilling the potential of technology that has lagged in previous decades.