Newzoo has published data and analysis on mergers and acquisitions specific to the game industry for 2022. According to the information, the various acquisitions this year already surpassed the total number of mergers and acquisitions in 2021. Additionally, the report also published details on how each acquisition has changed the industry.
The biggest acquisition so far has, of course, been the Microsoft-Activision Blizzard deal. According to Newzoo’s data, Microsoft ranked 4th in gaming revenue with $2.9 billion in the third quarter of 2021. Sony was second with $4.3 billion. However, when Microsoft’s revenue is combined with that of Activision Blizzard, it reaches $4.8 billion, allowing Microsoft to surpass Sony in Q3 2021.
Newzoo analyst Rhys Elliott added that the acquisition involves more than just a revenue stream. In particular, inevitable growth is predicted for Microsoft’s subscription systems.
“Microsoft is playing the long game, and game content and services are at the heart of it. Massive franchises like Call of Duty, Warcraft, and Candy Crush and smaller IP like StarCraft and Crash Bandicoot will bring value to Game Pass. The developer’s catalog of games goes back over 20 years so Microsoft will have plenty of options to add to Game Pass’ library.”
According to the report, Sony’s acquisition of Bungie is more about the company’s content strategy than revenue. Joining forces with the Destiny developer, Sony plans to create more live games. Sony also plans to expand its presence outside of the PlayStation platform, and Bungie will help with that with future multiplatform releases.
Another deal Newzoo noted was Take-Two’s acquisition of Zynga. Elliott estimates that this acquisition is primarily related to Zynga’s revenue and expanding the company’s presence in mobile. Elliott adds that Take-Two had tried to access various content before but was blocked;
“The company tried to diversify its portfolio into racing games last year via acquiring Codemasters, but EA swooped in at the last moment.”
