The video game industry is in a unique place right now in the best and worst ways. On the one hand, certain sales are helping elevate the industry. We’ve had plenty of AAA titles that gamers have bought into during 2023. Heck, just recent releases by Nintendo and Insomniac Games can account for millions of copies sold in a very small period. However, on the business side of things, there are more “curious” issues that many are concerned about—specifically, the recently approved merger between Microsoft and Activision Blizzard. Many were worried about what that merger could mean for the industry as a whole, and now, one analyst shares a potentially grim view of things going forward.
That person is Michael Metzger. He works at an “investment bank” known as Drake Star that specializes in various tech mergers and other acquisitions that certain companies, such as Microsoft, would partake in. Outside of the Activision Blizzard Merger, things have been relatively quiet recently. That’s actually been an anomaly, given all the mergers and buyouts that have been going on over the last several years. However, according to Metzger, things are going to change over the next twelve months, possibly leading to even more possible mergers between various companies:
“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,” he revealed to Axios.
Some of the companies that Metzger suspects could have a big impact on things in the future include Sony, Tencent, and possibly even Take-Two Interactive. He even said that companies who have made tons of acquisitions lately, like The Embracer Group, could be one to start “selling off parts” for one reason or another, which could lead to new possibilities with other companies.
The worry among some, including former Sony leader Shawn Layden, is that the more the industry “consolidates,” the more “restrictive” things will get. Yes, it’s true that the indie game development community will still be around and attempting to keep things fresh and fun. But if more big companies come together and start making it harder for indie companies to bring their games to their systems? Or have a lower chance of making a profit off of them? Things could get rather tense.
To be clear, this hasn’t happened yet, and the gaming industry isn’t in a “doomsday scenario” just yet. But it is something we need to be on the lookout for in the future.
