In recent years the use of the term “consolidation” has become common, which is nothing more than a phase in the capitalist process in the industrial and business era in which factors such as the maturity of an industry and the presence of a slow market lead to to a series of acquisitions and mergers by the largest companies. Microsoft buys studios and publishers, Embracer (before it crashed) did, and Sony is inching forward, but this is not limited to the companies that develop and publish. Other video game sectors are experiencing it and a recent acquisition has attracted attention in the media.
IGN Entertainment bought Gamer Network Limited – a major change in video game media
On May 20, IGN Entertainment announced the purchase of Gamer Network Limiteda British video game media and technology company that owns sites including GamesIndustry.biz, Eurogamer, Rock Paper Shotgun and VG247. The surprising move gave something to talk about because of IGN Entertainment’s sudden positioning in the sector, which considerably increased its presence in the European market because, from now on, it will own a dozen media outlets that participate. in the dynamics of the video game industry. A report of Video Games Industry Memo cites sources who claim that the price set by ReedPop for the sale of Gamer Network was $20 MMDD, but the offer made by IGN is unknown.
Like any acquisition within a consolidation phase, one of the objectives is to improve the efficiency of the operations that make a company function and, in the end, even if amounts are handled in millions of dollars (or much more), a purchase is easier and cheap than to undertake in new markets, build and present proposals in search of development and positioning against other competitors. However, the other side of the coin is that, inevitably, there are positions that are repeated, others overlap, some are redundant, and the human factor and its workforce potential succumb to the review of the accounts, which results in in layoffs.
IGN Entertainment’s purchase of Gamer Network resulted in the immediate departure of high-profile journalists with editorial decision-making positions at their respective sites.. This, in turn, gave rise to a series of criticisms and projections about what this operation means for a journalistic and media sector that, at least until now, has the plurality of ideas and contrasts as an essential pillar. On the one hand, it ensures that Gamer Network sites continue to operate and be sources of employment despite the layoffs that are part of the acquisition package; On the other hand, doubts and uncertainty increase because never in history has it been considered positive for a media company to grow so much and swallow up 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 mother industry permeates all its sectors. Large companies are making their moves, medium-sized companies are trying to buy to a lesser extent, and small companies… are surviving.
Just as we talk about purchases made by giants in the gaming industry, now we also do it with respect to video game media, but the process does not stop there. Last year, gaming commerce company Xsolla Partner Network purchased Lightstream, Rainmaker and API.Stream, a triad related to the streaming and content creation sector.
Lighstream started its cloud operating business in 2014 and then diversified with the creation of API.Stream, a platform that provides the necessary production tools for content creators. Likewise, Rainmaker takes care of the entire statistical apparatus that allows a streamer to analyze and make decisions according to the data, graphs 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 reduced to what happens at the top. It is a reality that affects business and, without a doubt, will have to change the forms of business, interaction and communication in the medium and long term.
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