Due to the expansion of the gaming business, mergers and acquisitions are on the rise

The recent rise in gaming industry mergers and acquisitions was one of the themes discussed. Both Microsoft and Take-acquisitions Two’s of Activision and Zynga are having significant effects on the gaming industry.

“M&A: Explaining how the gaming industry will evolve” was a panel discussion at the Summit. Frankie Zhu, an investment banker at LionTree, and Chris Petrovic, the CBO of FunPlus, were on the panel, which was moderated by Alina Soltys of Quantum Tech Partners.

Gaming’s impact on society

For starters, Zhu noted that the previous year’s surge in gaming had altered the scene. Zhu was right. There has been a steady rise in both player participation and the ecosystem’s overall size. For many IP owners, this has been a windfall since they’ve learned that gaming is a potent medium for monetizing their IP.”

Companies are making these expenditures, according to Petrovic, because they want to expand, he said. The ultimate goal of these public companies, such as Microsoft and Take-Two, even though they may have had their own unique reasons for making acquisitions, was still the same: they desired greater scale, access to more intellectual property, and a broader range of audiences across different mediums. Because that’s what the market appreciates.”

Will there be more mergers and acquisitions?

Other topics were whether there would be more mergers and acquisitions in the future. I believe right now is an all-time high in game innovation, which is developing the industry at a quick pace,” Zhu added. You just have to look at the growth of smartphones to see that now, whether they choose to call themselves gamers or not, almost everyone has a smartphone. With cloud gaming, you can play games that were previously unavailable. For a long time, you had to have a lot of pricey equipment in order to play or test out these things. More and more of the globe is becoming accessible to this place as those boundaries are being smashed down.

With the emergence of Web3, Petrovic believes that the game business will undergo significant changes. “[The creators of Web3] are creating an environment many of us are not understanding, because the types of products they’re making and the target audience that are consuming these products are not your traditional ‘gamers’ and the Western markets that we’re used to… I think what the gaming industry is going to pivot into or evolve into is trying to see if this Web3 platform opportunity is a real one, if it starts attracting more traditional audiences that we’re used to marketing and used to making games for, in addition to the ones that already exist… And then whether it’s actually providing solutions to problems consumers feel they have in terms of gaming opportunities.”