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Gamecraft

The State of Play: 2024 (Ep. 9)

Jan 24, 2024
The hosts discuss the paradoxical state of the games business, comparing it to the post-pandemic video streaming industry. They explore the implications of increasing consolidation, the end of the ten year surfeit of cheap money, and the over-investment of private capital into studios. They also cover topics such as the evolving definition of gaming, challenges faced by gaming studios, and the impact of COVID-19 on valuation and growth. Additionally, they touch upon the challenges faced by the gaming industry in China.
01:18:55

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Quick takeaways

  • Consolidation in the games industry could limit innovation and acquisition opportunities.
  • Rising interest rates and investor focus on profitability may lead to cost reduction and layoffs in the industry.

Deep dives

Consolidation in the Games Industry

The podcast episode discusses the recent trend of consolidation in the games industry, noting major mergers and acquisitions such as Microsoft's acquisition of Activision. The consolidation is seen as potentially problematic because it reduces the number of potential publishers for third-party content and limits the options for smaller game companies seeking acquisition. The episode suggests that this consolidation could have a chilling effect on innovation and acquisition activity in the industry.

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