Microsoft, Sony acquisitions are just the start of massive video game industry consolidation
Within the span of one month, three major video game companies made seismic acquisitions that are changing the shape of the industry. First, it was Grand Theft Auto publisher Take-Two Interactive buying mobile giant Zynga for $12.7 billion, which was, at the time, the biggest acquisition in the industry’s history. Just over a week later, Microsoft announced plans to buy Activision Blizzard in a deal worth $68.7 billion, more than five times the size of Take-Two’s record-breaking acquisition. To round out January, Microsoft competitor Sony announced its new purchase: Destiny 2 developer Bungie, for $3.6 billion.
Industry consolidation isn’t new, but the speed at which major companies are buying out other major companies, in deals worth billions, appears to be ramping up. Acquisitions beget acquisitions, as companies compete with each other in size, exclusivity, and financial potential. The trend won’t end here: Though government regulators will need to scrutinize these deals before they become official, fewer and fewer companies will soon own all of gaming’s biggest franchises.
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“Usually, acquisitions lead to more acquisitions,” LightShed Ventures analyst and partner Brandon Ross told Polygon in January, following the Microsoft acquisition. “You’re going to see that competitive publishers and studios are now in play. The question is, who can buy them?”
It certainly seems like these companies aren’t done buying up the market. In an interview with GamesIndustry.biz following the Bungie acquisition, Sony Interactive Entertainment CEO Jim Ryan said there are “more moves to make” at Sony with regard to acquisitions. “We should absolutely expect more,” Ryan said. “We are by no means done. With PlayStation, we have a
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