2022 Has Seen the Most Gaming M&A Ever
In January, Microsoft announced a deal to acquire Activision Blizzard for $68.7 billion.
The deal is not only set to be the largest acquisition ever in the video game industry, but it also established 2022 as the top year for video game mergers and acquisitions (“M&A”) announcements in terms of value, according to analysis of S&P data dating back to 1989.
Video game M&A announced in 2022 to date passed a total value of $95 billion with Sony’s January deal to acquire the video game developer Bungie, and several smaller deals emerged throughout February.
Some of the smaller transactions mentioned above: streamers have been getting into the gaming space in the hopes of finding new ways to retain their users.
Netflix has been active in the gaming market. As recently as yesterday the company acquired Boss Fight Entertainment, a small independent video game studio based in Allen, Texas, as the video streaming company pushes further into the video game market.
In addition to acquiring established studios, Netflix has also made mobile games a part of its subscription package.
Just this week, the streamer announced the addition of three new games on the platform, adding to its $72 million purchase of Finland-based Next Games — the creator of “Stranger Things: Puzzle Tales” in 2021.
Blockchain Gaming Could Drive Further Growth
Gaming can also benefit from the metaverse. Morgan Stanley recently published a report that outlined the ways in which blockchain technology could impact the gaming industry going forward.
In 2020, 50 million Americans took up gaming according to Morgan Stanley Research, a 31% year-over-year increase. Compare that to the previous two years, where users grew by just 7%.
The adoption of gaming overall has been undeniable, but the future could see further adoption if gaming studios can improve in-game monetization.
This is where the metaverse comes into play. In-game monetization is being revitalized with the use of NFTs and blockchain. Entire funds are being raised with the intent of investing in the blockchain gaming ecosystem.
FTX, the worlds third-largest crypto exchange, recently raised a $2 billion fund in January focused on growing crypto across social, gaming, and financial assets.
According to the Blockchain Game Alliance’s annual report, which surveyed 300 companies across 56 countries, found that the industry generated $2.3 billion in third-quarter revenue and accounted for around 22% of all NFT trading volume.
Check out the full Heat Check here.
ICYMI: Last week, we published a new Heat Check on the M&A activity in the NFT space. You can access that report and our other research at Insights HQ.
