Games Industry Acquisitions And Mergers Will Reportedly “Increase Steadily Over The Next Year”

The games industry has been one that’s always been growing for years, though since the pandemic its safe to say that it’s been booming these last three.

It’s currently the largest entertainment industry, and while we think we’ve seen big acquisitions lately with Microsoft buying Activision Blizzard or Sony buying Bungie, things are only expected to go up from here.

That’s at least the opinion of Michael Metzger, a partner at investment bank Drake Star, which mainly deals in investing in tech mergers and acquisitions

A report from Axios points out that Drake Star has been tracking acquisitions and mergers being on the rise in recent months, and according to Metzger, “based on our discussions with many of the top gaming companies in the last weeks, we expect the deal volume to increase steadily over the next year.”

Who can say what exactly these mergers and acquisitions will be, but Metzger points to Sony, Take-Two, Tencent and Savvy Games as the ones who will be making most of these big moves.

In one sense, it’s potentially an exciting future, as these larger publishers could enable smaller teams to deliver projects they wouldn’t have been able to do on their own.

On the other hand, consolidation leads more often to less variety, and greater risk that whenever the parent company decides times are rough, and layoffs are needed, that now has an even greater ripple effect.

Just like what we’ve been seeing this year, with layoffs and studio closures across the industry.

Source – [Axios]