Tell Me More: Issue 92

Key insights

7 takeaways

01
Sony acquired Bungie for $3.6 billion to gain expertise in live-service game development, aiming to launch ten live-service titles by March 2026.
02
Game industry M&A activity in January 2022 alone reached $85.4 billion, surpassing the total value of all deals announced in 2021.
03
The FTC has signaled it will investigate Microsoft’s proposed acquisition of Activision Blizzard, indicating a more rigorous regulatory review process.
04
Team17 canceled its Worms NFT project within 24 hours of announcement following significant backlash from fans and partner developers.
05
EA lowered its revenue forecast by $100 million due to the poor performance of Battlefield 2042, which failed to resonate with the community.
06
FromSoftware’s Souls series servers were taken offline for over a week due to a critical remote code execution exploit that Bandai Namco reportedly knew about for years.
07
Netmarble announced that 70% of its upcoming releases, totaling approximately 20 titles, will incorporate blockchain technology, including NFTs and play-to-earn mechanics.

Summary

The gaming industry experienced a period of intense consolidation and volatility in early 2022, characterized by high-profile acquisitions and shifting corporate strategies. The primary focus centers on Sony’s $3.6 billion acquisition of Bungie, a move interpreted not as a purchase of existing intellectual property, but as a strategic investment in live-service expertise. Sony aims to leverage Bungie’s experience to support its goal of launching ten live-service titles by March 2026, addressing a significant gap in its internal development capabilities.

Data from the period highlights the rapid acceleration of industry M&A activity, with the value of deals announced in January 2022 alone surpassing the total recorded for the entire year of 2021. This trend is accompanied by broader market shifts, including the New York Times’ acquisition of the viral game Wordle and the Federal Trade Commission’s decision to investigate Microsoft’s proposed purchase of Activision Blizzard. Meanwhile, the industry faced significant pushback regarding blockchain integration; Team 17 abandoned its Worms NFT project following severe community and partner developer backlash, and other major publishers began to temper their public enthusiasm for similar technologies.

The analysis underscores a period of transition where traditional publishers are struggling to balance legacy business models with the demands of "forever games." Financial performance remains uneven, as evidenced by Electronic Arts lowering its revenue forecasts by $100 million due to the underperformance of Battlefield 2042. Ultimately, the industry is characterized by a frantic race for scale and expertise, with major players attempting to secure their positions through aggressive acquisitions while navigating increasing regulatory scrutiny and consumer resistance to emerging monetization trends.