M&A boom in gaming industry benefits from industry growth

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One of the themes at the GamesBeat Summit was the recent merger boom in the gaming industry. Whether it’s Microsoft’s acquisition of Activision, or Take-Two’s acquisition of Zynga, these deals have had a huge impact on the gaming world.

A panel at the summit, “M&A: Explaining How the Gaming World Will Change,” delved into this topic. The panel was moderated by Alina Soltys of Quantum Tech Partners and moderated by investment bankers Frankie Zhu of LionTree and CBO Chris Petrovic of FunPlus.

How the rise of gaming changed things

At the start of the panel discussion, Zhu noted that the previous year’s gaming peak had changed the landscape. “Player engagement and player numbers in the ecosystem have permanently increased. This has been largely a boon for many IP holders, as they have come to realize that gaming as a medium to monetize their IP has a lot to offer. How powerful.”

Petrovic also noted that the company made these investments with growth in mind. “These public companies, like Microsoft and Take-Two, although they may have different reasons for their acquisitions, ultimately want to get bigger scale, want to get more IP, want to get more audience and maybe cross-border A diverse audience for the platform. That’s what the market pays off.”

Will we see more mergers and acquisitions?

The panel also talked about the future, including whether we’ll see more mergers and acquisitions in the future. “I think innovation in gaming is at an all-time high right now, and the market is rapidly expanding,” Zhu said. You look at the popularity of smartphones: basically everyone who owns a smartphone is a gamer now, whether they like to call themselves or not Gamers. You also have cloud gaming, which opens up barriers to traditional gaming. Traditionally, you had to have very expensive hardware to try or play these products. Those barriers are being broken and more of the world is moving towards this space Open the door.”

Petrovic also noted that with the rise of Web3, the gaming industry may change. “[The creators of Web3] Is creating an environment that many of us don’t understand because the types of products they make and the target audience consuming those products are not your traditional “gamers” and the western market we’re used to…I guess anything but those that already exist. …and then does it actually provide a solution to the problems consumers think they have in terms of gaming opportunities. “

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