It is anticipated that mergers and acquisitions in the gaming industry will gradually increase over the next year

The gaming industry anticipates a surge in merger and acquisition (M&A) activity over the next year, according to Michael Metzger, a partner at the tech-focused M&A investment bank, Drake Star.

As reported by Axios, Drake Star observed 33 M&A deals totaling approximately $5 billion between July and September. While the number of deals was at a two-year low, their cumulative value surpassed that of three of the previous five quarters.

During the third quarter, Drake Star also tracked nearly $1 billion in private investments in the gaming industry, showing an increase compared to the preceding three months.

Metzger stated to Axios, "Based on our discussions with many major gaming companies in recent weeks, we expect the deal volume to steadily increase over the next year."

He anticipates that Sony, Take-Two, Tencent, and Savvy/Scopely will be the most active buyers in the coming year. Additionally, he expects that Embracer Group will sell off some of its studios.

It's worth noting that almost two years after the official announcement of the deal, Microsoft recently completed its $68.7 billion acquisition of Activision Blizzard, marking the largest deal ever in the gaming industry and for Microsoft.

In response to Microsoft's acquisition of Activision Blizzard, industry consultant Dr. Serkan Toto believes that Sony is under pressure to make a significant move to counter Xbox's mega-deal.

In a recent interview with Lan Parties, former head of PlayStation in the United States, Shawn Layden, expressed concerns about industry consolidation, particularly its impact on creativity. He noted that when smaller, independent studios are acquired by larger conglomerates, the development process can slow down, and the variety of creative game projects may decrease.