Studio closures a result of ‘stupid acquisitions’ — Epic exec

Over the course of the past year, closures have rocked big studios, little studios, and medium-sized ones. What’s the cause of this?

According to Epic’s European boss Mike Gamblel, they are the result of what he calls “stupid acquisitions.”

“It happened because of stupid acquisitions,” Gambel recently told Eurogamer.

“What was the point of a well-known children’s IP holder buying a hardcore racing studio?” he said of Disney’s decision to pick up Split/Second developer Black Rock. “It doesn’t make sense.”

“A lot of the pain we’ve had in the last 18 months has been down to the economics of games development, which has changed,” he further added. “Big publishers have had to pull back in money wise and the casualties of that are the studios that haven’t performed for them because the industry has changed.”

While it’s unfortunate that so many shops have shut their doors recently, those closures have led the displaced developers to new, indie studios. And is that such a bad thing?