Stuart says competition sends a signal that gaming is worth pursuing. To compete in such a vibrant market, gaming companies must have technical and artistic acumen, as well as business and operational excellence. As customer expectations rise dramatically, continuous innovation and product differentiation have become key pillars of success, and gaming executives are clearly aware of this. For example, 83% of those surveyed said the gaming industry is under constant pressure to innovate and create new gaming experiences.
How does this innovation come about? In recent years, there has been a clear trend of companies using M&A to acquire talent, technology, and popular gaming franchises. In 2021, nearly 400 gaming deals were announced or closed, valued at approximately $36.3 billion.¹ This trend was further strengthened by Microsoft’s announcement in January 2022 of plans to acquire gaming company Activision Blizzard for $68.7 billion. Yet, when asked what activities would best position them for success over the next three years, only 16% of respondents listed M&A as a priority. This indicates an appetite for organic growth. Driving that growth will require a focus on developing and delivering new products and services. In fact, 50% of gaming executives surveyed said they plan to increase funding for research and development over the next three years, and a similar number (44%) plan to invest in new technology.
