Dismissal and acquisition

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

Takeover: Game of Thrones

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

Microsoft has acquired Activision Blizzard.

On Sony's side, the Japanese company is more secretive but also owns 21 studios, including Bungie, Insomniac, Naughty Dog, and Sucker Punch Productions. Over the past three years, Sony has consistently pursued acquisitions of smaller companies and invested heavily in Epic Games, FromSoftware, and others.

But the ultimate "kingpin" remains Tencent, with thousands of tentacles covering the entire gaming industry. The Chinese company currently holds stakes in major companies such as Bloober Team, Paradox Interactive, PlatinumGames, Remedy, Roblox, Ubisoft... and even holds full control over Riot Games, Funcom, and many others. It's safe to say that for every player who experiences a product developed using Unreal Engine, Tencent reaps a profit.

Layoffs: The dark side of money

The downside of the acquisitions was a wave of mass layoffs in the industry. An estimated 9,000 people lost their jobs in 2023, compared to just 1,000 in 2022. Embracer Group laid off over 900 people and closed several studios, Unity also terminated 900 employees. In addition, Epic Games laid off 830 people, EA over 1,000, and CD Projekt RED, Sega, Ubisoft, and Microsoft all made cuts during the year.

A number of game companies are carrying out large-scale layoffs.

This also serves as a wake-up call for the gaming industry. The more acquisitions there are, the fewer independent studios will remain, leading to greater dependence and a higher risk of employee layoffs. It's clear that the gaming industry is shrinking and becoming less vibrant in 2023. And the big question is, what will become of the acquired studios in five years' time?

Trade unions: A ray of hope amidst the storm.

Amidst the bleak landscape, a glimmer of hope has emerged from the rise of game unions. From small studios to AAA giants, more and more developers are finding support in unions, fighting for a healthy work environment and fair wages. Microsoft currently boasts the largest game union, with over 300 quality control employees at ZeniMax Media.

Many unions have been established within the gaming industry.

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

2023 has come to an end, opening up a future filled with both concerns and hope. What will 2024 bring? Will acquisitions continue to expand? Or will unions act as a shield protecting game developers? Only time will tell.

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