Investigating player perceptions of acquisitions in the video game industry

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School of Business | Bachelor's thesis
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Date

2024

Department

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Mcode

Degree programme

(Mikkeli) Bachelor’s Program in International Business

Language

en

Pages

39+2

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Abstract

This paper explores player perceptions of acquisitions and their effect on market dynamics and game development in the video game industry. Mergers and acquisitions (M&A) have become a growing appeal to large corporations in the video gaming industry in their strive for strategic opportunities for growth and market share. In the industry, these transactions have commonly involved a larger company acquiring a smaller game development studio or publisher. While M&A activities historically primarily aim to enhance operational efficiency, expand market presence, and generate economies of scale, they have been criticized among the gaming community to contribute towards monopolization and harming game development, and thus the end users of the value chain, players. Therefore, this paper investigates consumer perceptions regarding acquisition effects on market dynamics in terms of exclusivity, accessibility and game development in terms of creativity, innovation and diversity. The primary data was collected from 107 respondents. The findings revealed a heavy inclination of apprehension among participants who perceive acquisitions to contribute to reduced completion, consolidation of power among industry giants, increased exclusivity and reduced accessibility. More-over, participants expressed their concerns regarding acquisitions and their effect in hindering creativity, innovation and diversity in the type of games, and closure of small development studios. Statistical analysis supported by a thematic analysis confirmed a high level of agreement towards the negative implications, revealing the heightened need for greater transparency and the importance to address player concerns to ensure a sustainable and impartial gaming ecosystem.

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Thesis advisor

Hassan, Lobna

Keywords

video game industry, acquisitions, player perceptions, exclusivity, accessibility, market competition, game development

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