China Tencent is No. 1 in the video game industry, forget about Microsoft, Activision, Sony

China-based Tencent is the largest player in the market in terms of revenue. It owns League of Legends, Clash of Clans etc.

The global video game industry has gone through a series of blockbuster takeovers, most recently the acquisition of Bungie by Sony and Microsoft’s move for Activision Blizzard. The consolidation still leaves four major players afloat in an industry estimated to be worth $300 billion.

Tencent: worldwide number one

China-based Tencent is the largest player in the market in terms of revenue. It is a huge player in the Asian market and has invested in game studios outside of its home country.

The company owns Riot Games, creator of the battle royale hit “League of Legends”, and has interests in French game star Ubisoft and Activision.

It also acquired Finnish studio Supercell (“Clash of Clans”, “Clash Royale”, “Brawl Stars”) in 2016 for $8.6 billion – a record at the time.

Sony: Playstation supremo

Japanese consumer electronics giant Sony has sold more than 500 million units of its PlayStation since 1994.

Through a subsidiary, it manages a large number of studios – including Insomniac and Housemarque – that have developed exclusive titles for its machines, such as the “Spider-Man” saga.

The $3.6 billion acquisition of Bungie, the makers of “Halo” and Destiny, announced Monday will bolster its gaming portfolio — although “Halo” is still owned by Microsoft.

Sony has also invested in Epic Games, the company behind “Fortnite”.

Microsoft: new big spender

The American behemoth was behind the largest acquisition in the industry’s history last month with the purchase of Activision Blizzard for $69 billion.

The deal will land major titles such as “Call of Duty”, “World of Warcraft” and “Diablo”.

The group behind Xbox consoles already has control over major game titles such as “Minecraft”, “Elder Scrolls” and “Fallout” thanks to previous acquisitions.

And it is now aiming to become the “Netflix of video games” with its online Game Pass platform that allows users to download or play games via the cloud.

Nintendo: Internal Games

With its reliance on homemade sagas such as “Mario”, “Zelda” or “Pokemon”, Nintendo sets itself apart from its competitors by staying away from the frenzy of takeovers in the sector.

The March 2020 release of the game “Animal Crossing: New Horizons” became a social phenomenon as the Covid-19 pandemic led to a global shift to an indoor lifestyle.

It sold a record 28.8 million Switch games in the past fiscal year.

the independents

Several leading publishers have escaped the hands of the giants thus far, but could become targets in the near future.

American creator Take-Two is a heavyweight in its own right, the stable is full of popular games including “Grand Theft Auto”, “NBA 2K” and “Red Dead Redemption”.

And it has itself played the acquisition game, spending $12.7 billion to acquire mobile game developer Zynga, creator of the farming simulation “FarmVille”.

North Carolina-based Epic Games saw its valuation soar to nearly $29 billion last year after a round of funding from investors, including Sony.

Electronic Arts had revenue of $5.6 billion last year and also has a portfolio of very popular licenses such as “FIFA”, “Battlefield” and “The Sims”.

The French Ubisoft (“Assassin’s Creed”, “Far Cry”) is valued at around six billion euros and is also a major player in the sector.

Arun Agarwal
I am Arun Agarwal, a passionate blogger and gamer. I love to share my thoughts on games and technology through blog posts. I’m also an avid reader of books about history, philosophy, science-fiction, and other genres as well as an anime fan. I like reading books that give me new perspectives or help me think differently about the world around us.