End of the Line: Hype Surrounding Gaming Acquisitions Fades
It was just a few years ago when gaming’s largest companies were competing for the biggest and most talked-about acquisitions. These landmark deals, including Microsoft’s purchase of Minecraft developer Mojang and Sony’s acquisition of game streaming service Gaikai, generated immense hype and speculation among gamers and industry experts alike. But now, the fervor appears to be subsiding, with some of the larger players seemingly content to sit on the sidelines, while smaller independent developers take the reins.
The most talked-about acquisitions of the past few years have largely dried up in recent times. We haven’t heard much from Microsoft since it bought up Mojang andKayzen, and Sony has been equally quiet since its purchase of Gaikai several years ago. The only major acquisition that could be seen as a direct result of these behemoths’ purchases has been Microsoft’s acquisition of the mobile-gaming startup deCervo earlier this year.
The reason for the sudden lull is that, for the first time in a while, the focus of the gaming industry has shifted away from the big players. Instead, high-profile indie titles are getting the attention and financial backing of the major publishers, with titles like Control and Firewatch leading the way. Furthermore, there’s been an influx of venture capital money into the space, allowing independent developers the opportunity to produce their own titles without the need for a large publisher.
Given that the market for buying and selling game-related businesses appears to have cooled, we could soon see a rise in companies opting to go public. A number of major game developers, such as Fortnite and Overwatch publisher Blizzard, have already done so, and it’s likely that more will follow suit. After all, why buy up smaller companies when you can just take them public and potentially reap even greater rewards?
Ultimately, the trend of big gaming acquisitions appears to be on the wane, as major gaming companies have seemingly shifted focus to the more prominent indie titles and the potential for taking them public. However, this doesn’t mean that the hype surrounding gaming acquisitions has gone away completely – there’s still a lot of excitement surrounding the industry and its growth potential, and acquisitions can provide a boost to the industry as a whole.