Acquisitions aren’t necessarily a new trend in the video game industry, but many studios are backed by large conglomerates these days. For example, EA recently partnered with Dirt developer Codemasters, and Sony added Housemarque (and possibly Bluepoint) to its extensive list of in-house studios. Microsoft’s multi-billion dollar Bethesda purchase is Starfield’s announcement, especially exclusively for the Xbox. Of course, some consumers have expressed concern about the surge in acquisitions, calling the integration a downside to the industry. But Phil Spencer feels that’s not the case. He thinks the acquisition is a good thing.
so Interview with IGN, Spencer talked about the ups and downs of the industry’s recent shift to brand expansion. Spencer focuses on the challenges associated with launching and selling small businesses. In the event of difficulty, Spencer said simply not selling could be short-sighted.
“It doesn’t mean that every team has to sell the studio, but I think it’s a natural and healthy part of our industry for a particular team to start a studio. Many teams fail. Most small businesses fail. Video games, etc. — But teams that get over it, take a risky journey, and reach the point to create true value, the team goes to that point. We always congratulate you when you reach it. Realize its value through acquisitions, or if that’s the way they also started, achieve large-scale independent success. “
What do you think of Spencer’s words? Do you agree that the acquisition is normal and sound, or are you legitimately concerned about the trajectory of the industry in which large companies are expanding their umbrellas?