The Great Video Game Consolidation Is Just Beginning

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A feeding frenzy for video game makers is now fully under way. The obvious question is, who's next?

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On Monday, Sony Group Corp. said it has reached an agreement to acquire private game developer Bungie Inc.

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Creator of two of the industry's most successful game franchises, Halo and Destiny, for $3.6 billion

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The deal comes just weeks after two other large gaming deals were announced: Microsoft Corp.'s planned purchase of Activision Blizzard for $69 billion

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And all of this has followed Microsoft's $7.5 billion acquisition of video game publisher ZeniMax Media last year.

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Video game companies have become hot commodities for several reasons. 

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First, the industry remains one of the largest and most attractive growth opportunities at the nexus of consumer products and technology.

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Second, interactive entertainment businesses offer a leg up on what some say will be the next big thing: the so-called metaverse.

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Finally, if large technology companies are allowed by regulators to do big deals, expect Apple Inc., Meta Platforms and Alphabet Inc. to be willing buyers, too.