2021 was a massive year for the gaming industry, as unprecedented growth, new technologies, and the first year of next-gen consoles were all headline-grabbing developments. The year was also dominated by some of the deepest pockets in the industry scooping up some of the best studios, publishers, and intellectual properties under their brands.
Those acquisitions have resulted in seismic shifts in the gaming industry--ones where it's not beyond the realm of possibility to hear of a new mega-deal that sees billions of dollars paid out to own a big-name studio. All throughout 2021--and in the first month of 2022 alone--gigantic deals have gone down, making it a fascinating time to be a fan of the gaming industry. If you're looking for a recap on just how much has changed recently, we've created a quick timeline on the major events that have gone down over the last year-plus.
Just over two decades ago, the idea of Microsoft venturing into the gaming space was unheard of. These days, however, the Xbox division is a core part of Microsoft's identity, and one that the company has invested heavily in over the years. No stranger to studio acquisitions, Microsoft had already added the likes of Double Fine, Minecraft maker Moving, and several other studios to its portfolio in a major push to develop Xbox-exclusive games.
In 2020, Microsoft came out guns blazing with its next round of acquisitions, as it bought Zeniths Media, the parent company of famed video game publisher powerhouse Bethesda Soft works. By March 2021, that $7.5 billion deal was officially complete, and Microsoft now had some of the finest IPs working under the Xbox Game Studios brand. While Bethesda's various games and studios were no doubt valuable assets, Zeniths cloud gaming technology shouldn't be overlooked.
Originally revealed at E3 2019, Bethesda said at the time that the patented cloud streaming SDK known as Orion would allow games to run at "max settings" with minimal bandwidth usage. Combine that technology with Microsoft's push to make Xbox an experience that's playable on mobile devices through its own cloud gaming initiative, and the Zenith purchase made that much more sense. Microsoft didn't just gain a rich library of IPs to add to its console and popular Xbox Game Pass service; it acquired the technology to one day make those titles accessible on more than just consoles and PC.
Fast-forward to January 2022, and in its biggest flex yet, Microsoft announced plans for a $68.7 billion acquisition of Activision Blizzard were underway. While that deal may only be concluded next year--provided that it's approved by regulatory bodies--it's another example of Microsoft being more than prepared to invest heavily in its future by securing some of the biggest IPs currently in existence, and the talented staff to go along with them.
The last generation of gaming is one where Sony operated in peak form thanks to its first-party studios. A few years into the life-cycle of the PS4, a PlayStation Studios-branded game carried an air of quality and prestige that elevated it above its competition. That ethos has remained steady in the first year of the PS5 era, but it's now a part of a more ambitious strategy by a company that has largely focused on quality single-player experiences.
Throughout 2021, Sony got the ball rolling with acquisitions of PC port developer Nixes Software, Return studio House marque, The Playroom's Fire sprite Studios, God of War support studio Valkyrie Entertainment, and Bluepoint Games, the studio responsible for its well-received remakes of classic games such as Demon's Souls. In January 2022, Sony opened up its wallet once more and announced that an acquisition of Destiny 2 developer Bungee was underway. Despite the conspicuous timing, coming shortly after the Activision Blizzard news, Sony's Bungee deal had already been months in the making.
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