Which Video Game Studio Will Be Acquired Next?
Video game studios being acquired by larger corporations isn't a new phenomenon within the industry, but lately, the rate at which studios and publishers--including big ones--are being purchased has escalated dramatically. Times have changed recently, as companies look to consolidate their presence in the gaming industry.
Microsoft's purchase of ZeniMax and Bethesda was just the appetizer for its plans to acquire Activision Blizzard for a staggering sum, Sony began laying the foundation for its push into live-service games when it bought Destiny 2 developer Bungie, and Swedish company Embracer Group has amassed a sizeable collection of studios across the globe. And don’t forget Take-Two’s $12.7 billion plan to purchase social and mobile game developer Zynga.
So what's driving this sudden round of mergers and acquisitions lately? According to Ampere Analysis' Piers Harding-Rolls competition from big tech, entertainment companies such as Netflix, global expansion from games publishers like Tencent and NetEase, and the concept of the metaverse are factors that are driving these massive deals across the industry.
«Interest in games from the biggest tech companies has resulted in competitors that have a broad array of technical skills, leading cloud-based capabilities, and very strong financial positions making them formidable opponents,» Harding-Rolls explained. «Not only is there continued high games industry demand due to the proliferation of companies, storefronts, and services active in the market but there is also increasing demand from adjacent sectors, such as film and TV, that have a growing need for games developer skills.»
With the gaming industry landscape changing and the sector becoming more competitive,
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