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

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The takeaway: Layoffs and game studio closures have surged in recent years, largely due to the hangover from pandemic-era overinvestment. As Microsoft continues its layoffs and closures and Arkane Lyon fights for its life, a new analysis suggests that most studios are worse off after being acquired. However, those game studios that have thrived under certain publishers show a consistent pattern.

Game industry veteran Sebastian Cardoso recently investigated the fates of more than 300 studios bought by large companies over the past quarter century, finding that roughly 61% sold fewer games, earned lower review scores, or faced closure post-acquisition.

Arkane Lyon risks becoming the latest example if it doesn't find a buyer by mid-December, but Ubisoft and at least two other companies have made offers for the Dishonored and Deathloop developer.

Cardoso's lengthy...

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