Clawing your way to the top of the video game industry pyramid, in terms of pure revenue, is a very difficult task.
Chinese game company Tencent (TCEHY) has been king of it for some time now with a reported $70 billion in revenue.
Two of its biggest mobile games, "PUBG:Battlegrounds" and "Honor of Kings," both bring in billions of dollars a year individually.
Tencent also owns stake in a total of 41 gaming companies across many major countries, including Epic Games, Activision Blizzard (ATVI), and Ubisoft (UBSFY) .
Following Tencent, the top names on the list also include well-established names such as Sony Interactive Entertainment (SNE), Nintendo (NTDOY), and Microsoft (MSFT).
But one way to vault the top is to simply buy another company on said list. After Microsoft's announcement in January 2022 that it intends to purchase Activision Blizzard for $68.7 billion, it's clear that's the path its choosing to take.
But after a recent job posting, it seems as if Microsoft is not finished with its quest to buy up companies that can help it vault to the top.
What Companies Is Microsoft Considering Buying Next?
In a job listing posted on LinkedIn on April 22, Microsoft is seeking a Manager of Game Strategy and Development, reports Video Games Chronicle.
The responsibilities for the role include "Developing and evaluating the business case for content & technology acquisitions," as well as "Creating business plans for new growth initiatives (e.g., new products, business models, geographies, etc.)" and "Identifying and deeply understanding key consumer / technology/business trends."
While there's no clarity on what Microsoft might want to buy next, it looks like the company wants an expert to help it identify what it calls "transformative growth opportunities."
Buying Other Game Companies is Big Business
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There have been lots of buyouts in the video game space in the last few years, such as Netflix (NFLX) snapping up indie studios Next Games, Boss Fight, and Night School.
Sony also bought several smaller studios in 2021, including Firesprite, a Finnish developer that has created several games for Sony's PlayStation VR, and Valkyrie Entertainment, a studio known for supporting the releases of big budget titles including several entries in the "God of War" franchise.
It also bought Housemarque, the Finnish studio that created the award-winning PlayStation 5 sci-fi action game "Returnal."
French publisher Ubisoft, known for its popular "Assassin's Creed" series, has also been a hot topic among private equity firms interested in acquiring it, according to a Bloomberg report which says that "deliberations are at an early stage."
Interested firms include Blackstone Inc. and KKR & Co.
