Layoffs and acquisitions

According to Engadget , we are now entering the final days of 2023, marking the end of a turbulent year for the gaming industry, with a series of acquisitions, layoffs and the strong rise of unions.

Acquisition: Game of Thrones

The biggest acquisition was the $69 billion merger between Microsoft and Activision Blizzard, making Microsoft the third-largest gaming company in the world , behind only Sony and Tencent. The Redmond giant now owns nearly 40 game development studios, with notable names such as Arkane, Mojang, Ninja Theory and Turn 10.

Microsoft has acquired Activision Blizzard

Sony, on the other hand, is a more secretive Japanese company, but it also owns 21 studios, including Bungie, Insomniac, Naughty Dog, and Sucker Punch Productions. Over the past three years, Sony has been steadily increasing its acquisitions of smaller companies and investing heavily in Epic Games, FromSoftware, etc.

But the 'final boss' is still Tencent, with thousands of 'octopus tentacles' covering the entire gaming industry. The Chinese company currently holds shares in major companies such as Bloober Team, Paradox Interactive, PlatinumGames, Remedy, Roblox, Ubisoft... even fully controls Riot Games, Funcom and many others. It can be said that for every player experiencing a product developed with Unreal Engine, Tencent earns a profit.

Layoffs: The Dark Side of the Coin

The downside of the acquisition is a wave of massive layoffs in the industry. It is estimated that up to 9,000 people will lose their jobs in 2023, compared to only 1,000 in 2022. Of these, Embracer Group will lay off more than 900 people and close many studios, Unity will also terminate the labor force with 900 employees. In addition, Epic Games will lay off 830 people, EA more than 1,000 people, and CD Projekt RED, Sega, Ubisoft, and Microsoft will also cut staff this year.

A series of large-scale layoffs by game companies

This is also considered a warning bell for the gaming industry. The more acquisitions, the fewer independent studios there will be, thereby increasing dependence and increasing the risk of employee layoffs. It can be seen that the gaming industry is shrinking and becoming less colorful in 2023. And the big question is, in 5 years, what will happen to the acquired studios?

Unions: A ray of hope amid the storm

In the bleak picture, there is a glimmer of hope in the rise of game unions. From small studios to AAA giants, more and more developers are finding support in unions, fighting for a healthy working environment and fair wages. Microsoft now owns the largest game union with over 300 quality control staff at ZeniMax Media.

There are many unions in the gaming industry that have been established.

Avalanche Studios, Anemone Hug, CD Projekt RED, Experis Game Solutions, Keywords Studios, Sega of America, Tender Claws and Workinman Interactive are also notable names. This is a good thing and should be replicated to ensure the stability of the gaming industry.

As 2023 comes to a close, a future filled with both worry and hope is opening up. What will 2024 bring? Will the takeovers continue to expand? Or will unions be the shield to protect game developers? Time will tell.

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