Why THQ Nordic has joined the game studio acquisition binge

On November 17, Embracer Group (a game publisher formed from the combination of THQ Nordic and Nordic Games Publishing) announced the acquisition of a dozen game studios. That was a historic day in games, and it was part of an acquisition binge trend that includes deals like Microsoft’s $7.5 billion acquisition of Bethesda in September.

The Karlstad, Sweden-based company has 4,445 employees and said it has 135 game projects in the works right now. Its rapid expansion illustrates the big opportunity in games, particularly as folks are playing more during the pandemic. Market researcher Newzoo expects game industry revenues to hit $174.9 billion in 2020. One of Embracer Group’s big divisions is THQ Nordic, based in Vienna, Austria. I spoke with THQ Nordic CEO Klemens Kreuzer, who described the thinking behind the company’s frenetic expansion pace.