In recent years, the gaming industry has witnessed significant blockbuster deals. Microsoft’s acquisition of Activision Blizzard stands out as the largest, with Sony’s buyout of Bungie also making waves. Even relatively smaller transactions, such as NetEase’s purchase of Quantic Dream or Nacon’s takeover of Daedalic, have garnered attention. While external observers debate the merits of this industry consolidation, GDC’s latest State of the Game Industry survey reveals growing concerns among industry professionals.
In 2023, when developers were first asked about their views on industry consolidation, 17% believed that “major acquisitions” like Microsoft’s takeover of Activision would have a positive impact. However, this optimism dwindled to just 5% in 2024. The percentage of those anticipating a negative impact remained relatively stable at 43% in 2024, compared to 44% in 2023. Meanwhile, those considering no meaningful impact decreased from 7% in 2023 to 2% in 2024.
This shift in sentiment is understandable given the challenging year of layoffs in 2023, a trend that has continued into 2024. Some layoffs were attributed to over-aggressive expansion during the early days of the Covid-19 pandemic. The respondent highlighted the case of Embracer Group, a Swedish holding company that grew rapidly through acquisitions, only to lay off hundreds and close studios when a significant investment deal fell through.
Respondents expressed concerns about the concentration of wealth and power, citing the need for antitrust laws to prevent complacency and contempt for workers and consumers. A middle-ground perspective from 42% of respondents acknowledged the mixed impact of major acquisitions, recognizing business benefits but expressing reservations about negative effects on individual developers and diverse creative values.
Concerns extended to competition, with respondents noting centralization under large corporate umbrellas, potentially stifling innovation and maverick projects. Some viewed acquisitions as a potential relief for small companies seeking financial stability, although others emphasized the impact on creative diversity.
The survey also reflected mixed attitudes about how individual developers can protect themselves from negative fallout. While 57% advocated for industry unionization, support varied by age, with 72% among those aged 18-24 supporting unionization compared to 29% among those aged 55-64. The survey highlights a complex landscape where industry professionals grapple with the implications of major acquisitions on both a business and creative level.