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TrevorPhillips

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Activision/Vivendi to set an industry trend?

Posted on December 4th, 2007 at 08:28 EDT

Most people are probably still stunned over the recent Activision and Vivendi merger, either in a positive or negative way. This deal has taken away the glory spot from Electronic Arts as the largest videogame publisher in the world. More than that however, is the fact that this deal could create a trend for future publishers to consider in the future.

"We believe the deal could have significant repercussions in the VG industry - forcing accelerated consolidation potentially with other publishers." Says Ben Feder, Take-Two CEO, "Videogame development is not getting any cheaper. It's a capital-intensive business, and I don't see that going away. That will drive some of the smaller competitors out [...] I do believe that consolidation ultimately is inevitable."

So what does this mean exactly? Well to summarize, the videogame industry is becoming substantially larger than it once was, bearing far more resemblance to the music and film industry, which are run predominately by large corporations. The gaming industry has historically been known for being comprised of smaller business, but due to growth of the years, these smaller companies face the only option of merging or being bought out for the simple fact that they cannot adapt.

This could become a trend that we will see in the years to come as before this merger, EA bought out the holding group that owns Pandemic and Bioware, which was just as equally large.

We will keep you updated on anything else that comes from the Activision and Vivendi merger. heres the link: http://www.psu.com/ActivisionVivendi-to-set-an-industry-trend--a0002079-p0.php

70°

Microsoft Gaming Revenue Drops 7% Year-on-Year, Content and Services Down 5%, Xbox Hardware Down 33%

Microsoft announced its financial results for Q3 of fiscal year 2026, including an update on its gaming Xbox business and more.

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simulationdaily.com
Jin_Sakai2d ago (Edited 2d ago )

Not looking good. Hopefully Asha Sharma is able to turn Phil’s disaster around.

dveio2d ago

To me it's still quite remarkable how they can cash-in 5.3bn in revenue in a single quarter, since their hardware is basically dead.

Jingsing2d ago

The stock mark is what makes Microsoft remarkable, They have convinced every institutional and retail investor to just keep piling money into them. Like many big tech giants they are just a big growing pyramid scheme. As long as people keep dropping money into ETF's that cover the market Microsoft will always be liquid. At the same time it is completely stifling innovation and competition. People need to start being more discreet in how they invest their money as it's killing the system.

Tanktopmaster922d ago

Once they re-evaluate exclusive all will be fine….

S2Killinit2d ago

Riiiiight because people will just flock back to them for one or two games per year.

Jingsing2d ago

15+ years of bad performance is what they call irreparable in business. It is time for them to sell off the assets and get out of entertainment.

Tanktopmaster922d ago

These declines are on the back of extra revenue received from releasing games like Forza horizon 5 on PlayStation. So I’m being sarcastic here when I said they should go back to exclusives. Killing off a revenue stream from Ps5 sales will only make things worse

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40°

Games Done Quick is coming to Europe for the first time with 3 days of Gamescom speedruns

The charity event will be streamed live from Gamescom in August.

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Report: Injustice 3 in Development at NetherRealm Studios

Thanks to the slip-up of an artist working on the title, we now have more evidence that a new Injustice game is in the works.