A third of acquired game studios have closed since 2000, and Arkane Lyon could be next

Recent analysis suggests that nearly a third of game studios acquired by larger companies have closed since 2000. Arkane Lyon, the developer behind the popular Dishonored and Deathloop franchises, is currently facing potential closure and could join this unfortunate statistic if a buyer cannot be found by mid-December. The findings are part of a comprehensive study by industry veteran Sebastian Cardoso, who examined over 300 studios purchased by major publishers over the past quarter century.

The data reveals that 61% of acquired studios either produced fewer games, received lower review scores, or were shut down following the acquisition. Studios that managed to buy themselves out of the hands of their original owners fared better, with no of the 18 such cases experiencing decline or closure. However, studios that were bought by debt-financed acquisitions, like Embracer's, often faced significant struggles.

On the opposite end of the spectrum, Nintendo, Sumo Group, Krafton, and Kadokawa have acquired a few studios without closing any of them. These publishers typically work closely with the original studio heads and leave them in charge. Among the current gaming giants, Microsoft, Ubisoft, Take-Two, Epic Games, Sony, and Sega are in the middle ground, while Activision Blizzard stands out as the worst offender, shuttering or hollowing out every single studio it acquired.

Microsoft recently conducted one of the largest rounds of layoffs, affecting 3,200 employees and potentially leading to the closure of several studios. Despite these challenges, Arkane Lyon's future remains uncertain, with Microsoft reportedly considering selling the studio back to management. The French game development union representing Arkane, STJV, has accused Microsoft of sabotaging the development of Marvel's Blade, which they claim is going well.

Arkane Lyon is currently in a precarious position, with closure still on the table if no suitable buyer can be found.