Profitability in the video games business is increasingly about scale. Much as with the film industry of 70 years ago, it is becoming difficult for small national players to compete against well-funded Americans. So how do European companies deal with this? Well, cultural patterns are coming to the fore if recent corporate activity surrounding the UK’s Eidos and France’s Ubisoft is anything to go by.
There are two trends driving consolidation. Video game sequels tend to be the opposite of their Hollywood brethren – they are both artistically and financially superior to the originals.
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