After blockbuster Microsoft deal, gaming giants are still sitting on $45 billion cash hoard

▤ Summary

The deal, valued at $69 billion, will see Microsoft gain ownership of some of the most lucrative properties in video games, including the massive Call of Duty franchise, Candy Crush, Crash Bandicoot, Warcraft, Diablo, and Overwatch. "As the global venture market rebounds we expect gaming, which was somewhat insulated from the initial impact of the economic downturn, to follow," Chapman told CNBC. Video game publishers have been grappling with a deterioration of macroeconomic conditions, with high inflation and rising interest rates denting consumer appetite for discretionary spending. Whereas in 2020, when consumers were flush with cash thanks to easy monetary conditions, times have gotten tougher in 2022 and 2023 as central bankers have increased interest rates in a bid to stem rising prices. The firm said that it expects a compound annual growth rate of 9% in the next five years, with the industry reaching a whopping $288 billion in overall sales by 2028.

▦ Linked Companies

Microsoft

$1B+