{
  "id": 18169856,
  "title": "Analysis: one in three acquired game studios has been shut down since 2000",
  "url": "https://urgent.news/2026/11/04/analysis-one-in-three-acquired-game-studios-has-been-shut-down-since",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-11-04T18:56:00.000Z",
  "source": {
    "name": "GamesIndustry",
    "slug": "gamesindustry",
    "url": "https://www.gamesindustry.biz/analysis-one-in-three-acquired-game-studios-has-been-shut-down-since-2000"
  },
  "original_language": "en",
  "account": "A recent analysis of over 300 game studios acquired by major companies since 2000 reveals that one-third of these studios have been completely shut down. Half of these closures occurred within five years of the acquisition. Sebastian Cardoso, who formerly worked at Riot, Crytek, and EA, spent approximately three months compiling data on 303 PC and console studios acquired over the past 25 years. His findings, published in the Game Studio Unlocked newsletter, indicate that 60.8% of acquired studios either experienced a decline in their game production or were shut down entirely. Only one in four acquired studios managed to maintain their original level of production and remain intact institutionally. The primary factor contributing to these closures, according to Cardoso, is the identity of the acquiring company. Notably, 17 of Activision Blizzard's ownership periods ended in decline or closure, along with every ownership period for Disney, Midway, and Thunderful. EA's closure rate was 83%. Out of the 283 developers surveyed, just 71 studios, or 25.1%, continued to produce games post-acquisition and had not experienced mass layoffs, integration into the parent company, or loss of leadership. However, Cardoso's rules count these studios as having declined if they were absorbed into their owner or shifted to support work, even if their games remained intact. Excluding these cases, the closure rate drops to 51.6%. Notable companies with clean records include Nintendo, which has bought six studios in 24 years and closed none, as well as Kadokawa, Krafton, and Sumo Group. In contrast, Microsoft, Sony, Tencent, and Embracer all have closure rates above 50%. Cardoso attributes these differences to whether companies acquire studios to feed a machine or because they want to own good studios. Closures have also accelerated, with only one acquired studio shutting down between 2019 and 2022, but 33 closures since 2023. Cardoso also examined 50 notable independent studios from October 2019 to October 2026, finding that only 2% closed, compared to 12.6% of acquired studios. However, he notes that the independent figure is based on a single closure. Studios founded by big companies fared even worse, with 87.5% of 56 in the census declining or being shut down, and 18 of the 34 that closed never releasing a game. NetEase opened eight studios between 2020 and 2023, all of which have since been closed.",
  "summary": "A new analysis of over 300 game studios acquired by big companies since 2000 shows one in three studios has since been shut down completely, half of which were shuttered within five years of the acquisition. Read more",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}