The 5 most valuable video game companies in the world and their historical operations

The purchase of Activision Blizzard by Microsoft has marked a historic moment in the video game industry. Everything has a price, and in the case of the company directed by Bobby Kotick it is 68,700 million dollars. Once the purchase is completed in the fiscal year of 2023, the Redmond giant will take over the publisher responsible for hits as popular as Call of Duty, World of Warcraft, Diablo and Candy Crush, among others.

Microsoft’s move is unprecedented within the video game, and reorders the ranking among the most valuable video game companies by profit. Below we leave you with the five that occupy the highest positions in the table based on the results of the year 2020.

5th- NetEase | $29.9 billion

The Chinese company has invested fiercely in the sector after doing the same in electronic commerce, social networks in its country and advertising, among others. In Asian territory it is one of the leaders, who started their online video game division back in 2001. After 20 years they have done everything: from publishing their own mobile titles to publishing some Western projects in China, such as Overwatch, Diablo and world of warcraft On the other hand, Marvel Super War, Knives Out and Warbound Storm are some of its internal developments.

NetEase purchases are few outside its borders. Just a few months ago they acquired Suda51’s studio, Grasshopper Manufacture, for a figure that has not been revealed to the public. Where we can see them is by buying their presence in some renowned companies, like bungie. Americans saw a $100 million investment in 2018. A year later, in 2019, they bought a small portion of Quantic Dream stock.

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4th- Microsoft | $13.83 billion

Those from Redmond had managed to reach fourth position. After the purchase of Activision Blizzard, the sum of the publisher’s profits will boost it to third position with approximately $21.9 billion, if we take into account the figures for that fiscal year. Microsoft has been betting on the video game for just over 20 years; it was with the first Xbox that a long journey began.

As we said at the beginning, the 68.7 billion dollars for the publisher are unprecedented in the industry. Almost triples the amount of what was, until now, Microsoft’s most expensive purchase: Linkedin for $26.2 billion. It is closely followed by Nuance, which cost them no less than 19.7 billion dollars. The purchase of Zenimax ($7.5 billion) last year is a long way off, not to mention Mojang, the creators of Minecraft, ‘for just’ $2.5 billion. All of them turned out well for the Americans, except when they tried to do the same with Nintendo.

3rd- Nintendo | $15.79 billion

The Japanese firm will lose its position on the podium once Microsoft’s acquisition of Activision Blizzard is confirmed. That does not mean that the benefits it generates are few. Nintendo It is by far the company with the longest history in the market, and its achievements in both hardware and intellectual properties have propelled it forward over the years.

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Beyond their internal teams, who have brought to life such well-known characters as Mario, Luigi, Samus Aran and Kirby, they are not usually a company that risks buying. On numerous occasions they have explained that they are not interested in buying studies “blindly”; Investments are another thing, only “if necessary”. The last purchase awarded to them is about Next Level Games, with whom they had already maintained a close collaboration since 2005. Those responsible for the last Luigi’s Mansion became the first party on March 1, 2021 for a figure that has not transpired. Other known acquisitions were Retro Studios (Metroid Prime) and Monolith Soft (Xenoblade) in 2002 and 2007, respectively. The Americans cost 1 million dollars, while the Japanese were only around 650 thousand dollars

2nd- Sony | $22.67 billion

PlayStation are the lungs of the Japanese manufacturer. Sony’s profits in the area of ​​video games serve as a fundamental piece of its complex puzzle. And it is that the brand has built a strong portfolio of studios with talent over the years. PlayStation Studios has 17 teams, a figure that grew significantly last year. In 2021 alone, the acquisitions of Nixxes Software, Housemarque, Firesprite, Bluepoint Games and Valkyrie Entertainment were closed. The figures of the agreement were not shared in any of them.

What we did know was the amount that Sony Interactive Entertainment paid to acquire Insomniac in 2019. The creators of the recent Marvel’s Spider-Man and Ratchet & Clank: A Dimension Apart closed the deal for 229 million dollars. Shawn Layden, head of SIE Worldwide Studios at the time, described as one of the greatest achievements of his career to have been one of those responsible for the purchase. A historic moment for the company.

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1st- Tencent | $29.3 billion

Tencent’s growth not only serves to be a giant in China, but throughout the planet. In 2013 it became the largest publisher, beating Electronic Arts and Activision Blizzard. It may not sound like anything to many. Do you want an example of their portfolio? Riot Games, those responsible for League of Legends, are their property. In 2011 they took over 93% of the shares in exchange for $400 million. Four years later they filled that remaining 7% for an undisclosed amount.

Outside of Riot Games, its strongest investment in the West occurred among the offices of Epic Games. In 2012 they acquired 40% of the company for 300 million dollars. The support of the Unreal Engine and the subsequent appearance of Fortnite gave the movement even more meaning. Tencent also owns 11.5% of Bluehole (PUBG), 5% of Ubisoft, 80% of Grinding Gear Games (Path of Exile), 9% of Frontier Developments and 5% of Paradox Interactive, in addition to other studios. such as Klei Entertainment, Turtle Rock Studios and Platinum Games, although in the case of the last two they will remain independent.

References: Daniel Ahmad | | John Erlichman | PC Gamer | Reuters | IGN | Atelier.net | Bloomberg | Microsoft