Venture capital firms invested $700.3 million in games in the third quarter of 2023, Bloomberg reports, citing PitchBook data. That’s the lowest since the second quarter of 2020.

According to the report, the investment boom started just after the second quarter of 2020. If in April-June 2020 the volume of investment in games amounted to $470 million, in July-September of the same year – already $3.15 billion.

For two years, investors every quarter invested in games at least $2 billion until, in the middle of 2022, the amount did not reach a record $5.88 billion. After that, the situation changed dramatically, and the volume of investment decreased.

As Bloomberg writes, the main reasons for the decline are three: the end of the COVID-19 pandemic, the fading hype around the meta-universe and Web 3.0, and the growth of layoffs and game delays.