In recent years, the term "consolidation" has become common, which is nothing more than a phase in the capitalist process in the industrial and business era where factors such as the maturity of an industry and the presence of a slow market lead to a series of acquisitions and mergers by larger companies. Microsoft buys studios and publishers, Embracer (before crashing) did it, and Sony advances little by little, but this is not limited to companies that develop and publish. Other sectors of the video game industry experience it, and a recent acquisition has caught the attention of the media.
IGN Entertainment bought Gamer Network Limited: a major shift in video game media
On May 20, IGN Entertainment announced the purchase of Gamer Network Limited, a British video game and technology media company owning sites including GamesIndustry.biz, Eurogamer, Rock Paper Shotgun, and VG247. The surprising move sparked discussion due to IGN Entertainment's sudden positioning in the sector, significantly increasing its presence in the European market because, from now on, it will own a dozen media outlets participating in the dynamics of the video game industry. A report by Video Games Industry Memo cites sources claiming that ReedPop set the sale price of Gamer Network at $20 billion, but IGN's offer is unknown.
Like any acquisition within a phase of consolidation, one of the objectives is to improve the efficiency of operations that keep a company running. In the end, although dealing with amounts in the millions of dollars (or much more), a purchase is simpler and cheaper than venturing into new markets, building, and presenting proposals for development and positioning against other competitors. However, the other side of the coin is that inevitably, there are positions that are duplicated, others are superimposed, some are redundant, and the human factor and its workforce potential succumb to account reviews, resulting in layoffs.
The purchase of Gamer Network by IGN Entertainment resulted in the immediate departure of high-profile journalists with editorial decision-making positions at their respective sites. This, in turn, sparked a series of critiques and projections about what this operation means for a journalistic and media sector that, at least so far, relies on the plurality of ideas and contrasts as an essential pillar. On one hand, it is assured that Gamer Network sites will continue to operate and be sources of employment despite the layoffs that are part of the acquisition package; on the other, doubts and uncertainties increase because it is never considered positive for a media company to grow so much and swallow its competitors.
The consolidation phase in the video game industry reaches all its sectors
The acquisition in the video game and technology media sector shows that the consolidation phase of the parent industry permeates all its sectors. Big companies are making their moves, medium-sized ones try to buy on a smaller scale, and the small ones... survive.
Just as we talk about the purchases made by giants in the gaming industry, we now also talk about video game media, but the process doesn't stop there. Last year, the gaming commerce company Xsolla Partner Network bought Lightstream, Rainmaker, and API.Stream, a trio related to the streaming and content creation sector.
Lightstream started its cloud operation business in 2014 and then diversified with the creation of API.Stream, a platform that provides production tools necessary for content creators. Likewise, Rainmaker handles all the statistical apparatus that allows a streamer to analyze and make decisions according to the data, graphics, and information that expose the results and reactions to their work.
Although these purchases happen without much fanfare, they are part of the consolidation phase of the video game industry, which is not limited to what happens at the top. It is a reality that crosses the business and will undoubtedly change business forms, interaction, and communication in the medium and long term.
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