There were more than 1,100 acquisitions, investments and other financial deals in the games industry in 2021, making it a “historic year for gaming”. a new report Industry Tracker by Drake Starr.
Why this matters: The investment boom came a year after gaming’s COVID-driven player boom in 2020 resulted in an industry overflowing with people who want it to thrive.
Numbers: While many deals do not have dollar amounts, the report states that deals totaled $85 billion. Partial breakdown:
- $38 billion in mergers and acquisitions, including gourmet Embraer Group’s 22 deals in 12 months (outside Tencent’s 16)
- $13 billion invested in private companies, including $1 billion in Epic last April and $100 million to $200 million in new studios he ain’t no moon, maybe monster and splitgate manufacturer 1047 game,
- $3.6 billion given to blockchain/NFT companies, including Animoca sandboxMILF To Play Earning Sensation axi infinity and Forte, which recently announced Partnerships With Zynga.
big picture: The volume and scale of deals indicate where gaming is headed.
- Microsoft’s Bethesda acquired for $7.5 billionwhich was announced in 2020 and kicked off in 2021, paves the way for Xbox’s aggressive 2022, which is capped with Bethesda’s signature exclusive game Starfield, which brings to life the Xbox and its range of gaming services. is for sale.
- In 2021, mobile studios were the preferred target for acquisition — and this began with Take-Two’s $12.7 billion bid for Zynga before 2022.
- But the biggest disclosures went to private investment blockchain companies. This tracks with the idea that blockchain gaming is being driven by startups and companies outside the gaming establishment.
Bottom-line: All these deals show enthusiasm, but they do not inherently indicate success.
- For all the money that has been poured into VR gaming over the past decade, that field is still waiting for its moment of success.
- It’s also worth noting that the biggest gaming hits can come from smaller teams, although it helps to have a bigger backer. WATCH: 2021 Breakout Walheim, An Upstart Viking Game made by five people whose studio is partly Owned by Vishal Embraer,