23 Daily — According to gamesindustry.biz, a new analysis of over 300 game studios acquired by major companies since 2000 reveals that one-third of these studios have been completely shut down, with half of those closures occurring within five years post-acquisition.

Over 60% of Acquired Studios Face Decline or Closure

Researcher Sebastian Cardoso spent roughly three months examining 303 PC and console studios acquired over the last 25 years. He published his findings and full dataset in his 'Game Studio Unlocked' newsletter.

His analysis found that 60.8% of acquired studios either experienced a decline in game quality or were shut down outright, while only 25% managed to maintain or exceed their previous level of game production and remained institutionally intact.

Ownership Strongly Influences Studio Outcomes, Nintendo Maintains Unblemished Record

The identity of the acquiring company significantly affected studio survival and performance. All acquisition periods under Activision Blizzard, Disney, Midway, and Thunderful ended in decline or closure, with EA showing an 83% rate of such outcomes.

In contrast, Nintendo acquired six studios over 24 years without closing any, and Kadokawa, Krafton, and Sumo Group similarly maintain spotless records. Microsoft, Sony, Tencent, and Embracer saw 63%, 58%, 50%, and 43% of their acquisition periods result in decline or closure respectively.

Cardoso attributes these differences to whether companies buy studios to "feed a machine" or to "own good studios."

Recent Surge in Closures; Independent Studios Show Lower Closure Rates

The pace of closures has accelerated sharply. Between 2019 and 2022, only one acquired studio closed, but since 2023, 33 have shut down.

Cardoso also tracked 50 notable independent studios from October 2019 to October 2026, finding only 2% closed versus 12.6% among acquired studios.

Editor's take: Challenges and Opportunities for Game Studios Amid Acquisition Waves

The analysis highlights significant operational challenges for studios post-acquisition, underscoring the importance of maintaining creative independence and quality. Not all acquisitions lead to stability; those driven predominantly by revenue generation show higher closure rates.

For entrepreneurs, this data provides critical insight into the risks and potential benefits of collaborating with or being acquired by large corporations. Verification could involve monitoring post-acquisition game update frequency, team turnover, shifts in development focus, and the operational status of studios on prominent platforms after acquisition.