As the biggest companies in the video game industry need to grow their kingdoms to remain their upward trajectory in comparison to their arrivals, it has become more common for these companies to acquire other studios and companies to achieve these goals. Sony recently acquired Housemarque, the studio behind Returnal, and Nintendo added Luigi’s Mansion 3 developer Next Level Games to their empire as well. Microsoft has been especially focused on acquiring studios in recent years, with Bethesda Softworks being their most recent significant studio acquisition. Now, Xbox head Phil Spencer has commented on these studio acquisitions, claiming that they are “good for the industry.”

Xbox boss Phil Spencer recently spoke with IGN about the future of Xbox, as well as their recent acquisition decisions. The conversation just happened to follow new comments made by Sony representatives insinuating that Microsoft is being hasty with their numerous acquisitions. Spencer fought back on that by suggesting that starting a new studio is risky, but acquiring an established studio helps mitigate that risk. He also believes that studio acquisitions are beneficial for the industry, as he states. “It doesn’t mean every team has to end up selling their studio, but I think it is a natural and healthy part of our industry that certain teams will start a studio—many of them will fail, we know most small business will fail, whether it’s videogames or anything else,” he said.

But those that make it through—and it’s such a kind of risk-filled journey for them—to get to the point to create real value, I’m always going to congratulate [them] when teams get to where they realize that value through acquisition, or just massive independent success if that’s the path they also start to go on.”

In the recent past, Microsoft has suggested that they still plan to acquire more major studios and build their portfolio. Spencer further states that more mainstream-focused games and family-friendly franchises will be a big part of those future acquisition plans. Whatever studio acquisitions Microsoft makes in the future, so far they’ve proven themselves to be a good home for studios looking to increase the size and scope of their properties. Now let’s see if Microsoft will acquire the studio behind Bubsy the Bobcat.

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