It's not just Wordle — there's a global video game gold rush

WHEN deal making in the games industry stretches from word puzzles to first-person shooters to Rancid the racoon’s attempt to steal “cropsies” on farms, you don’t need a bonus level to realise gaming has graduated well beyond its stereotypical teenage fanbase.

- Lucy Tobin

Gaming M&A is red-hot. The acquisition of Wordle for “low seven figures” by the New York Times was just the latest in a sting of deals: more than £63 billion-worth of takeovers have been announced in just the first two months of 2022 — already equalling last year’s total, itself a record high.

The blockbuster franchise Destiny 2 was snapped up when PlayStation maker Sony bought Bungie for $3.6 billion last month; a short time before, Farm Heroes, Call of Duty and World of Warcraft were gobbled up by Xbox maker Microsoft in its $68.7 billion purchase of Activision Blizzard; and US firm TakeTwo is adding Farmville to its Grand Theft Auto garage after buying mobile gaming giant Zynga for $13 billion.

The games console celebrates its 50th birthday this year, with revenues in the sector predicted to hit a record $81 billion, up 10% from last year, according to Deloitte. By comparison, cinema’s global box offices took in around $42 billion pre-pandemic.

Unlike cinema, gaming flourished during lockdowns: Statista reports a 39% surge in video gaming during Covid. That’s one reason the sector is enjoying a gold rush, as companies race to buy the most popular titles.