Is Gaming in an AI Bubble? What the Deal Data Says

Gaming financing hit a 12-month high in Q2 2026, with over $2.5B raised across fewer than 100 rounds. In this episode, recorded in person at Gamescom, Kalie Moore sits down with Michael Metzger, Managing Partner at Drake Star Partners, to work out what that actually signals. Michael leads Drake Star's gaming and digital media practice and is behind the quarterly report the industry reads to track where capital is moving. He starts with the question everyone is circling: is this an AI bubble? His answer is that the money reflects a massive opportunity, that some of the companies raising today will become very large businesses, and that a good number of them will not make it at all. They dig into what that means for valuations like General Intuition's, and why he's more excited about the AI-native games that haven't been built yet than the current wave of AI used to make production faster and cheaper.The conversation also covers why financing rounds have fallen from roughly 200 a quarter to below 100 while the money per round climbs, where capital is actually landing across gaming AI, ad-tech and hardware, and why he thinks AR glasses are the platform bet worth watching. Michael breaks down what he tells founders about timing a sale, why inbound interest is a better signal than trying to time the market, and what makes a mid-market deal attractive to buyers right now. Drawing on transactions he's advised, including Trak Racer to Corsair, Hipster Whale to Atari, Ready Player Me to Netflix and Echtra Games to Zynga, he explains what actually determines whether a deal works after it closes. They also get into why raising as a game studio remains harder than almost anything else in this market, the state of esports monetization after years of false starts, and the one category he thinks is currently undervalued.This episode is brought to you by Appcharge, the payments platform built specifically for mobile gaming that processes over a billion dollars annually. Learn more here: https://www.appcharge.com/?utm_source=naavik&utm_medium=newsletter&utm_campaign=sponsorship_paymentsWe’d also like to thank Dive for making this episode possible! With its fully managed analytics and LiveOps platform built for game studios, 95% of their clients grow revenue in one year. All of that without having to hire an in-house data team. Learn more here: dive.games If you like the episode, please help others find us by leaving a 5-star rating or review! And if you have any comments, requests, or feedback shoot us a note at podcast@naavik.co.Who’s On:Guest - Michael Metzger: https://www.linkedin.com/in/michaelmmetzger/Host - Kalie Moore: https://www.linkedin.com/in/kaliemoore/ Watch the episode: YouTube ChannelFor more episodes and details: Podcast WebsiteFree newsletter: Naavik DigestFollow us: Twitter | LinkedIn | WebsiteSound design by Gavin Mc CabeLinks mentioned:https://www.drakestar.com/news/global-gaming-report-q2-2026