Xbox boss talks mergers and acquisitions, says telling studios not to sell is ‘short-sighted’

Xbox has not shy away from acquiring studios to expand its range of first-party software. The console maker has signed notable deals for Bethesda parent company ZeniMax Media, Ninja Theory, Obsidian, Double Fine, and more over the past several years, expanding its Xbox Game Studios list to over 20 in-house studios.

Commenting on the Bethesda deal in March, Xbox CEO Phil Spencer said the $ 7.5 billion mammoth purchase was “about delivering great exclusive games.” Speaking to IGN on the latest episode of the Unlocked podcast, Spencer explained the role of mergers and acquisitions in the industry, suggesting that those who believe studios shouldn’t sell are “short-sighted”.

“Starting a small business is, frankly, a very risky endeavor, a video game studio even more. What if a team actually takes the risk of starting a new company, starting a new studio that will take years to build and create value? That. To say they shouldn’t sell is just shortsighted in my opinion, “he said.

“It is such a risky journey for them to get to the point of creating real value. I will always congratulate teams when teams get to the point where they realize that value through acquisitions or just through massive independent success. “

Noting that many of these industry leaders who are selling will move on and start other businesses and projects in the future, the Xbox boss stated that “it’s kind of natural revenue that happens with entrepreneurs and startup companies”. He added that Microsoft is constantly looking at where it can further strengthen its first-party capabilities by acquiring teams and studios that would be a good fit.

Spencer’s latest comments come after SVP Pete Hines apologized to fans for Bethesda global marketing and communications after Starfield became an Xbox exclusive, with some PlayStation owners expressing frustration over the decision.

Of course, Sony has made many acquisitions itself over the years and only acquired the Returnal developer Housemarque this week for an undisclosed fee. To learn more from Spencer, be sure to check out the Unlocked podcast on IGN.