One in three acquired game studios have shut down, new study finds

• Nearly 53% of the acquired studios that closed did so within five years of their acquisition.
• Nintendo closed none of the six studios it acquired.
• There were 33 acquired studio closures between 2023 and October 2026, compared with just one between 2019 and 2022.
• The study found that 87.5% of internally founded studios declined or closed.

Around one in three video game studios acquired by major companies since 2000 have closed down. 

That's according to a new analysis of 303 acquisitions published by former Riot, Crytek and EA employee Sebastian Cardoso, which found that 93 of the 283 acquired game developers in the census were shut down.

The study, published through his Game Studio Unlocked newsletter, also showed that 49 of the studios closed within five years of their acquisition.

Cardoso also found that 60.8% of acquired studios either saw their games decline or were closed altogether. Only 71 studios, representing 25.1% of the total, continued producing games at or above their previous level while maintaining their organisational structure.

Buyers matter

The company that bought a studio played a major role in what happened to it afterwards. All 17 ownership periods under Activision Blizzard ended in decline or closure, while Nintendo closed none of the six studios it acquired.

Microsoft recorded a 63% decline or closure rate, compared with 58% for Sony, 50% for Tencent and 43% for Embracer.

Studio closures have also accelerated. Only one acquired studio shut down between 2019 and 2022, compared with 33 closures from 2023 to October 2026.

Cardoso noted that his findings depend partly on how decline is measured. Excluding studios absorbed into their parent companies or moved to support work would reduce the 60.8% figure to 51.6%.

He also found that internally founded studios performed worse, with 87.5% declining or closing.