Analysis of Mergers and Acquisitions in Gaming Industry in 2024
The gaming industry continued to evolve in 2024 and 2025, with significant consolidation moves and strategic acquisitions shaping the landscape.
2024 Highlights
The year 2024 was marked by a series of major acquisitions, with Microsoft's $68.7 billion purchase of Activision Blizzard in October being the most notable. The deal, which included globally popular franchises like Warcraft, Diablo, Call of Duty, Overwatch, and Candy Crush, made Microsoft the third-largest gaming company by revenue, trailing behind Tencent and Sony [1][5].
The acquisition faced intense regulatory scrutiny. The U.S. Federal Trade Commission (FTC) sought to block it but lost in court, and the UK’s Competition and Markets Authority (CMA) initially blocked it but later allowed it after Microsoft agreed to concessions like divesting certain cloud rights [5]. Other significant deals included Take-Two's purchase of Zynga for $12.7 billion and Sony’s acquisition of Bungie for $3.6 billion in prior years [5].
Throughout 2024, regulatory bodies in the U.S. and EU maintained close oversight on gaming M&A activities due to concerns about monopolistic practices and reduced competition, especially regarding exclusive game offerings and app store market control [5].
2025 Trends and Predictions
M&A activity continued robustly in 2025, with $6.2 billion in gaming transactions already reported. Notably, Niantic (developer of Pokemon GO) is reportedly selling its gaming division, indicating larger companies aiming to consolidate key gaming properties [2].
Private and public buyers are increasingly focused on acquiring companies with complementary or adjacent product offerings to build end-to-end platforms and enhance software development talent, particularly in sports technology gaming, which has seen a 47.7% surge in M&A deal volume year over year up to mid-2025 [3].
There is a trend towards targeting companies providing operational management solutions, fan engagement analytics, and performance data collection tools in sports gaming, fueling competitive sales and higher valuations (average multiples around 11.9x EV/EBITDA) [3].
The connected game console market is expanding, driven by technology innovation, cloud gaming, cross-platform play, and social features, motivating leading firms like Microsoft, Sony, and Nintendo to invest heavily in R&D and partnerships, potentially driving future M&A to secure competitive features and content [4].
Regulatory caution remains significant; following Microsoft’s deal, further large acquisitions by major players will face high regulatory barriers, and ongoing investigations in the EU and US on gaming exclusivity and app store dominance may impact deal structures or approval [5].
Overall, 2024 was a year of landmark consolidation highlighting the sector’s maturation and regulatory focus, while 2025 is expected to continue with strategic deals aimed at broadening platform capabilities, especially in mobile, AR, and sports gaming tech, balanced by an increasingly vigilant regulatory environment.
Additionally, the aggregate value of financings increased compared to 2023, with web3 and AI gaming verticals drawing particular attention. The game-as-a-platform model has shown resilience among gamers, with older games with variable gameplay loops and vast, immersive worlds remaining popular.
[1] Source [2] Source [3] Source [4] Source [5] Source
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