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Xbox Boss Says Studio Acquisition Is “A Natural and Healthy Part of Our Industry”

During a recent interview, the Xbox boss Phil Spencer talked extensively about the acquisition of studios by major publishers. As the executive indicated, among other things, acquisitions have a positive impact on the video game industry.

Xbox Boss says studio acquisition is a healthy part of the industry

In the recent past, both Sony Interactive Entertainment and Microsoft have repeatedly drawn attention to themselves with studio purchases. For example, while Microsoft announced the 7.5 billion takeovers of Bethesda Softworks last summer, Sony Interactive Entertainment secured studios such as Insomniac Games or Housemarque.

While some of the players see a dubious development in the whole and are worried about the future of independent studios or the creative diversity, Microsoft’s Phil Spencer sees the acquisition of studios above all positively.

In that sense, Spencer said the following in a new video interview with IGN:

“Sometimes I see dialogue out in the industry about, ‘well, are acquisitions a good thing or a bad thing?’ And I saw Sony just announced a couple of acquisitions —saying congrats to those teams on that— and I understand some of the sentiment from the community about whether these are a good thing or a bad thing when acquisitions happen.”

“But one thing I’ll put out there is, starting a new studio, starting any small business, frankly, is a very risky proposition, starting a video game studio is even more so. And if a team actually takes the risk of starting a new company, starting a studio, building that over years, building value in that, to say that they shouldn’t sell I think is just short-sighted.”

“It doesn’t mean every team has to end up selling their studio but I think it a natural and healthy part of our industry that certain teams will start a studio—many of them will fail, we know most small businesses fail, whether it’s video games or anything else—but those that make it through and at such a kind of risk-filled journey for them, to get to the point to create real value, I’m always going to congratulate when teams get to the point where they realise that value through acquisition or just massive independent success if that’s the path they also start to on.”

What is your opinion about it? Do you agree with the statements of the Xbox boss? Or do you see a negative development of the video game industry in the increasing acquisition?