We’re nearly three weeks into 2023 and investors in video game companies are wondering… will 2023 see the massive number of deals and dollar value that we saw in 2021 and 2022?
Well, Celia Pearce, a Northeastern University professor of game design, doesn’t see deal flow slowing down anytime soon, saying “It’s going to continue to both happen and be controversial.”
And Pearce may very well be right. Earlier this month, a big video game industry deal was announced.
Gearbox Entertainment has acquired Captured Dimensions.
Although terms of the deal are undisclosed, Jordan Williams, president and founder of Captured Dimensions said, “This merger gives us an incredible runway for growth and opportunity. We’re excited to work hand-in-hand with some of the most talented developers around the world and continue providing our best-in-class services to our current clients and new partners.
“On behalf of the entire team here at Captured Dimensions, I’m looking forward to what we can capture and bring to life as a part of Gearbox.”
Sean Haran, chief business officer at Gearbox added, “We’ve had the pleasure of working with Jordan and his team at Captured Dimensions on several projects over the years. This deal brings a wealth of talent into the Gearbox family in several key areas, and I’m excited to welcome them.
“This acquisition brings incredible technology into the fold for future projects and enables further expansion of offerings to strategic partners across multiple business units.”
If you recall, Gearbox itself was acquired by Embracer Group in a deal worth up to $1.3 billion back in 2021.
This deal, which we may get more details on when Embracer files its next earnings report (Q4) in May, could be the “kickoff” to the 2023 deal flow many in the industry have been expecting.
And if Celia Pearce, of Northeastern, is right, this deal flow won’t be slowing down anytime soon.
On the revenue front, Bloomberg says 2023 could be a monster year for game sales.
“Now, 2023 is absolutely stacked. Nintendo Co.’s The Legend of Zelda: Tears of the Kingdom, Electronic Arts Inc.’s Dead Space, Square Enix Holdings Co.’s Final Fantasy XVI, Activision Blizzard Inc.’s Diablo IV and others are due out this year.
“The lineup of fresh releases will likely contribute to growth in consumer spending on games this year.” – the Bloomberg report said.
If Pearce and Bloomberg are correct, 2023 could be another big year for both industry revenue, and industry deals.
Read more about the Gearbox/Captured Dimensions deal, HERE
Or read more about potential M&A deals in the video game industry, HERE