Gaming M&A hits $2.3bn 💰 Compulsion Games seeks partners 🤝
2026-07-15 · 5 stories · 24 min read
Top Stories
Aream & Co: Gaming M&A hits $2.3bn in Q2, highest level since 2022 (2 min read)
Gaming M&A reached $2.3 billion across 54 transactions in Q2 2026, the highest level since 2022, according to Aream & Co. Mid-market acquisitions over $100 million drove growth, led by PC gaming and mobile studios. Notable deals include Scopely's $1 billion acquisition of Loom and Wemade founder Park Kwan-ho's plan to sell a 35% stake to NeoPulse. PC gaming grew 13% year-on-year, while mobile spending fell 4% and installs declined 12%. Nintendo revenue rose 90% on Switch 2 sales; PlayStation fell 5% and Xbox declined 7%. Public fundraising increased 67%, and private investment reached $3.1 billion, with significant growth in AdTech and AI technology. (GamesIndustry.biz)
Compulsion Games posts call for business partners after Xbox spinoff (4 min read)
Compulsion Games, spun off from Xbox last week, is publicly seeking business partners and collaboration opportunities across games and entertainment. The studio behind South of Midnight—which won a BAFTA, Peabody Award, and seven Canadian Game Awards—emphasized its creative and technical expertise in an open letter. Compulsion regained full ownership of its IP as part of Xbox's restructuring, which also cut 1,600 jobs and spun off Double Fine, Ninja Theory, and Undead Labs. (Game Developer)
Studios & People
Studio founded by former Star Wars: Galaxy of Heroes GM lays off staff (3 min read)
Azra Games, founded by ex-EA Capital Games GM Mark Otero, laid off staff less than two years after raising $42 million in Series A funding. The studio cited a shift from heavy production to a focused period of optimization and polish for its unreleased debut game UnGodly. (Game Developer)
11 Bit Studios lays off 20 workers as it "adjusts new project teams to current needs" (2 min read)
11 Bit Studios laid off 20 employees as it adjusted team structures to align with current project phases. The Warsaw-based developer said the studio's financial situation remains stable and that most affected staff were transferred to other projects within the company. (GamesIndustry.biz)
AI/Tech & Tools
miHoYo's New Challenge: How to Make AI Companions Feel Human (13 min read)
米哈游的新烦恼：如何让AI游戏“没有AI味”？
miHoYo launched AI interactive companion software BSide: Olivia Lin in early access on Steam in July. The application features a Shanghai-based virtual character designed to perform music, respond to letters, and engage users through various interactive features, though early reviews note limited animations and AI-generated dialogue that feels generic. (GameLook)
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