A new M&A report from analyst S&P has indicated a weakening investment environment for games, with available funding increasingly going to businesse models relying on recurring engagement, platform leverage or alternative monetization. The largest M&A transactions in Q2 were "hyper concentrated on AI," which has "siphoned interest away from other areas, particularly software," S&P Global Market Intelligence's Neil Barbour tells GamesIndustry.biz. There were 23 M&A transactions in the second quarter, totaling $1.15 billion in gross transaction value. The number of M&A transactions remained flat year-over-year in value but declined 85% from the first quarter. The largest Q2 funding round was Veroplay's $215.6 million investment related to its acquisition of play-to-earn platform JustPlay.