Consolidation of the Games Industry by Few Large Companies

The games industry is dominated by a small number of companies controlling most of the wealth generation. The recent Microsoft-Activision merger has further consolidated a huge percentage of the game space. The control of the PC gaming market by companies like Valve also contributes to the concentration of wealth. This trend of consolidation and acquisition is expected to increase, with fewer and fewer companies controlling the industry. Major gaming companies are sitting on billions in cash, leading to predictions of further consolidation and acquisition. This phase of consolidations and acquisitions can lead to a compression of the industry, with fewer companies dominating the market, potentially leading to negative implications.