Speaking with investors during a meeting on the company's earnings in the first quarter of 2022, Take-Two's CEO, Strauss Zelnick, discussed the topic of mergers and acquisitions (M&A) in the gaming industry. The CEO of Take-Two admitted that some opportunities were missed, apparently referring to Codemasters, which the company tried to acquire before Electronic Arts.
See also: Tencent: Plans to buy gaming company Sumo Group
See also: MSI gaming laptops: They feature 11th generation Intel Core processors
We have not yet seen any change in the market. And valuations remain inflated, I think due to the sector's growth and the excitement around it. However, our discipline has truly paid off over the past 14 years, we have not made any failed acquisition. Our acquisitions are efficient. But we are happy that we made every deal we made. We lost some that we would have liked to have made, but honestly, not that many.
Take-Two CEO Strauss Zelnick also said that it will be increasingly difficult for smaller companies to compete in the gaming sector in the future.
Over time it will become more difficult for smaller companies to be competitive in the field. The history of the entertainment business works as follows: over time, companies that are very creative become very successful. Those that are very successful become larger and have the opportunity to acquire smaller businesses. The focus remains on creativity, innovation and efficiency, and as long as the culture that has made the company successful is maintained. There is an opportunity for continuous success, even scalable. And surely this is how we see ourselves and how we envision our future.
See also: Xbox Cloud Gaming: Available on iOS devices via Safari
It's possible that the Take-Two CEO wasn't actually referring to independent developers, as that segment of the market is stronger than ever. In all likelihood, Zelnick was referring to the AA or mid-tier, which is indeed slowly being eaten up by larger companies like Microsoft, Sony, Tencent, and Embracer.
Information source: wccftech.com
