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Why video game developer acquisitions scare me

Cnet writes: "Am I the only person who's concerned about the consolidation going on in the video game business? Activision surpassed Electronic Arts, formerly the world's largest developer, last year in its merger with Vivendi and now it wants to roll up even more developers to expand internationally and "fill holes in its product line," according to Bloomberg.

In the past five years alone, Electronic Arts has acquired developers Ubisoft, JAMDAT Mobile, Mythic Entertainment, Phenomic Game Development, Digital Illusions CE, Headgate Studios, and VG Holding Corp. All told, the acquisitions cost the company billions of dollars.

Why does it matter that the two largest developers in the video game industry incur that much revenue each year? Because smaller developers like Capcom, Konami, Bethesda, and others have less chance than ever to compete."

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