![]() ![]() These bolster Microsoft’s Xbox Game Pass subscription service, the “Netflix of games,” and ensure that Microsoft continuously has new and appealing content. Microsoft’s acquisition of Activision Blizzard is one clear demonstration: The purchase will give Microsoft access to the publisher’s suite of video games, everything from the Call of Duty franchise and World of Warcraft to Candy Crush and Crash Bandicoot. The video game industry is making a lot of money, and companies see consolidation as a way to make more. (Ryan, for his part, said the Bungie acquisition has “nothing to do with industry consolidation.”)įinancials across these top companies point toward more acquisitions, too: Microsoft spent just over half of its cash on hand as of September 2021 to buy Activision Blizzard, meaning it’s still hoarding $60 billion. With PlayStation, we have a long way to go.” “We should absolutely expect more,” Ryan said. In an interview with following the Bungie deal, Sony Interactive Entertainment CEO Jim Ryan said there are “more moves to make” at Sony with regard to acquisitions. ![]() It certainly seems like these companies aren’t done buying up the market. “You’re going to see that competitive publishers and studios are now in play. “Usually, acquisitions lead to more acquisitions,” LightShed Ventures analyst and partner Brandon Ross told Polygon in January, following the Microsoft announcement. Sony, with Bungie’s help, to launch ‘more than 10 live-service games’ by 2026 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. Acquisitions beget acquisitions, as companies compete with each other in size, exclusivity, and financial potential. 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. To round out January, Microsoft competitor Sony announced its new purchase: Destiny 2 developer Bungie, for $3.6 billion. 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. 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. Within the span of one month, three major video game companies made seismic acquisitions that are changing the shape of the industry. ![]()
0 Comments
Leave a Reply. |