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A recent prediction from investment firm Drake Star suggests that the trend of video game acquisitions and buyouts will carry on in 2024, with several major players planning expansion efforts. Microsoft’s historic purchase of Activision-Blizzard for .7 billion this year marked the largest acquisition in the gaming industry’s history. The industry itself is expected to generate over 0 billion in revenue in 2023.

According to Drake Star, the consolidation of the gaming sector is not yet complete. Mergers and acquisitions will persist throughout 2024, with companies such as Tencent, Sony Interactive Entertainment, Saudi Arabia’s Savvy Games Group, and the recently-formed Take-Two Interactive expected to make significant buyouts. Drake Star’s Michael Metzger stated that discussions with top gaming companies indicate a projected increase in deal volume over the coming year.

Despite the anticipated buying spree, there are potential challenges ahead. Sony Interactive Entertainment has experienced a reduction in operating income due to its acquisition of Bungie and ongoing investments in first-party content. While Sony appears to be focusing on live services, reports suggest that this spending has been scaled back, although this information is yet to be confirmed.

Tencent, a stable force in the gaming industry, has built a vast empire through multiple acquisitions and investments. Rather than acquiring entire companies, Tencent has mostly focused on purchasing parts of companies. The company recently acquired a majority stake in Techland’s shares. Savvy Games Group, funded by the Saudi Arabian wealth fund, made a .9 billion acquisition of Scopely and is expected to continue expanding through further buyouts.

Meanwhile, Take-Two Interactive, which acquired Zynga for .7 billion in 2022, is unlikely to engage in additional acquisitions. With its diverse range of divisions and publishing labels, including 2K Games and Rockstar Games, Take-Two has a comprehensive slate of content and appears to have all bases covered. The developer’s upcoming lineup, featuring highly anticipated titles such as NBA 2K, Grand Theft Auto VI, and a new BioShock game, suggests that additional acquisitions are not currently on the horizon.

Sources: Axios, Drake Star Investment Firm

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