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Video Game Arms Race Heating Up

  • Fresh off a $2.5 billion acquisition, Microsoft reportedly wants more.
  • Amazon, Google and Sony are also reportedly looking to acquire more video game developers.
Fallout
Fallout 76

Major tech companies are eager to acquire more big-name video game studios.

Microsoft made a splash last September when it purchased Bethesda’s parent company ZeniMax for $7.5 billion. Bethesda is known for the wildly popular “Doom,” “Fallout,” and “Elder Scrolls” games, among others.

The acquisition appears to have set off an arms race of sorts.

Recent reports suggest Microsoft wants more developers under its umbrella to help satisfy Xbox gamers. Sony, Amazon, Google and Electronic Arts are also reportedly on the hunt.

There’s no indication yet which studios might get acquired and by whom, but the past 12 months have primed the market. 

Beyond the Bethesda deal: 

  • EA bought Codemasters for $1.2 billion
  • Zynga purchased Peak Games for $1.8 billion
  • Nintendo announced its acquisition of Next Level Games 
  • Through the first three quarters of 2020, more than 400 investments, acquisitions and public offerings generated more than $20 billion in industry value

The global video game market is expected to see 20% growth in 2020 and reach nearly $179.7 billion in revenue.

More industry shake-ups are likely on the horizon as tech giants reach for bigger slices of a growing pie. Hold on to your controllers.

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