Analysis: one in three acquired game studios has been shut down since 2000
An analysis of over 300 game studios acquired by major gaming companies since 2000 reveals troubling outcomes for many acquisitions. According to research by Sebastian Cardoso—a veteran of Riot Games, Crytek, and EA—approximately one-third of acquired studios have been subsequently shut down, with roughly half of those closures occurring within five years of the acquisition.
The analysis paints a broader picture of acquisition failure: 60.8% of acquired studios either experienced significant game performance decline or were shut down entirely. In contrast, only 25% of acquired studios successfully navigated the post-acquisition period.
A key finding from Cardoso’s research is that the acquiring company itself serves as the strongest predictor of a studio’s post-acquisition fate, suggesting that acquisition strategy and integration approaches vary significantly between publishers. The research dataset and full findings were published in Cardoso’s Game Studio Unlocked newsletter, providing the gaming industry with concrete data on the risks and outcomes of studio acquisitions. This analysis highlights ongoing consolidation challenges within the gaming industry and raises important questions about the effectiveness and sustainability of large-scale studio acquisitions as a business strategy.