The Buying Spree in Video Games continues in Microsoft, Epic, and Netflix

The Buying Spree in Video Games continues in Microsoft, Epic, and Netflix ...

The last few years have reportedly been a process in the video game industry to see how many smaller companies can be bought up by larger ones.

Microsoft''s (MSFT) - Get Microsoft Corporation Reporta deal to purchase Activision Blizzard (ATVI) - Get Activision Blizzard, Inc. Reportis one of the most high-profile industries, but hundreds more are being purchased and sold in the future.

Get Netflix, Inc. Reportpurchases of previously independent development studios Night School, Boss Fight Entertainment, and Next Games is a new example of a large company attempting to gain a foothold on the $198.40 billion video game industry.

All three were purchased by Netflix within a period of six months as part of a stalemate to build out Netflix Games, which intends to release 50 mobile games by the end of 2022.

Epic Games, the makers of the iconic video game "Fortnite," has also purchased Harmonix in 2021, the developer of industry-changing music games such as "Rock Band" and "Guitar Hero." Epic has more spending power than ever before since its "Fortnite" launch, which earned more than $9 billion in its first two years after its release.

Another major purchase has been made, allowing the company to move the whole of its beloved games into the hands of a new owner, but also allow the future owner to focus on some new arenas that it believes is crucial to its future development.

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What Video Game Company Was Sold This Time?

Get Square Enix Holdings Co. Ltd. Report, a video game publisher with a storied history in the industry, which is best known for its cash cow franchise "Final Fantasy," has decided to sell several studios from its Western development division to Embracer, a Swedish company.

Crystal Dynamics, Eidos Montreal, and Square Enix Montreal are among the studios affected. This three studios are known for a wide variety of successful video game franchises, including the "Tomb Raider" series that dates back to 1996, as well as "Deus Ex," "Legacy of Kain," and "Thief."

Embracer has already acquired 119 studios and 850 video game franchises, many of which have been purchased over the last two years.

The official announcement of Square-Enix mentions that the sale will allow the company to focus on further investments, including blockchain, AI, and the cloud.

Square Enix has shown interest in this sector in the past, according to President Yosuke Matsuda in an interview with Yahoo Japan on April 15th. The company said focus on traditional games "would not be sufficient" for the future, and that it intends to explore these new areas.

Matsuda addressed the topic in a New Year''s letter to staff, explaining that blockchain allows video games to take on a new form, where the player helps define the game experience.

"Be they single-player or online games, games have traditionally involved a multidirectional flow whereby developers like ourselves provide a game to the gamers who play them," Matsuda said. "By contrast, blockchain games, which have arrived from their early years and are now entering a growth phase, are built on the assumption of a token economy and therefore have the potential to enable self-sustaining game growth."

Both video game industry leaders and fans have taken to Twitter to show how much they dislike this new direction, dwindling more money to a general concern about crypto, blockchain, and NFT''s from the community, as well as a general consensus that Square Enix was making a mistake.

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