Activision Blizzard vs Supercell

One in Three Acquired Game Studios Shut Down Since 2000

A new analysis of over 300 game studios acquired by major companies since 2000 reveals that one in three has been shut down completely, with half closing within five years of acquisition. The study, conducted by Sebastian Cardoso (ex-Riot, Crytek, EA) and published on the Game Studio Unlocked newsletter, found that 60.8% of acquired studios saw either declining output or closure, and only 25.1% remained institutionally intact and producing at prior levels. The acquirer's identity was the strongest predictor of fate: all 17 Activision Blizzard ownership periods ended in decline or closure, as did Disney, Midway, and Thunderful; EA's figure was 83%. In contrast, Nintendo, Kadokawa, Krafton, and Sumo Group had clean records. Closures have accelerated, with 33 since 2023 versus just one from 2019-2022. Self-founded studios fared worse (87.5% declined or closed), while independent studios showed a 2% closure rate over seven years.

• One in three acquired game studios shut down since 2000.
• 60.8% of acquired studios saw decline or closure.
• All 17 Activision Blizzard acquisitions ended in decline or closure.

Private Equity Eyed $150bn Xbox Buyout, Microsoft Says Not For Sale

A group of private equity firms reportedly explored acquiring Microsoft's Xbox gaming division in a deal that could have valued the business between $100 billion and $150 billion, according to The Information. The talks were exploratory and did not lead to formal negotiations with Microsoft. Microsoft responded with a statement that 'Xbox is not for sale'. The report comes as Microsoft continues efforts to turn around the division, whose revenue fell 7% to $21.8 billion in the fiscal year ending June, with adjusted profit margins dropping to 3%. The division includes Activision Blizzard, acquired in 2023, and employs around 14,000 people. Microsoft has also considered spinning out Xbox or restructuring it as a wholly owned subsidiary. Recently, it announced job cuts of 3,200 employees and new divisions to expand franchises via media and live experiences.

• Private equity firms explored buying Microsoft's Xbox division, valuing it at $100-150 billion.
• The talks were exploratory and did not lead to negotiations with Microsoft; Microsoft said Xbox is not for sale.
• Xbox revenue fell 7% to $21.8 billion for the fiscal year ending June, with adjusted profit margin dropping to 3%.

Minecraft Blast testing expands to Canada and Australia

Minecraft Blast, a new puzzle game developed by King in collaboration with Mojang, is expanding its testing phase to Canada and Australia this October. The game combines Minecraft's IP with King's expertise in casual puzzle games. It was conceived after Microsoft's acquisition of Activision Blizzard, enabling collaboration between the two studios. The game features blast-style gameplay where players clear puzzles to earn energy and build a voxel world. Testing aims to validate player engagement, retention, and monetization. The first test in Malaysia showed positive results, and the upcoming Western test will be limited to a few weeks. A global launch is still far off, but the developers are focused on quality and broad appeal.

• Minecraft Blast is expanding its testing phase to Canada and Australia in October 2026.
• The game is developed by King, with Mojang overseeing IP representation.
• The game was conceived after Microsoft's $69 billion acquisition of Activision Blizzard (including King).

Supercell cyberattack exposes employee videos, no player data

Supercell, the Finnish mobile game developer behind Clash of Clans, disclosed that an unauthorized party accessed a platform used for hosting company meetings and presentations. Multiple cyberattacks targeted the company last week, with one causing the incident. The company has taken the service offline, blocked further access, and is investigating with security experts. Supercell has filed a police report and notified regulators, including the EU Cyber Resilience Act authorities and the Data Protection Ombudsman. The exposed material may include videos of current and former employees, guests, and partners, potentially containing names, images, voices, and email addresses. Supercell warns of potential phishing and impersonation scams and urges caution. The investigation is ongoing, and that no player data was affected.

• Supercell suffered multiple cyberattacks in the week preceding October 21, 2026.
• An unauthorized party accessed Supercell's internal video platform used for meetings and presentations.
• No player data was compromised, but videos and emails of employees and partners were exposed.

EU Digital Fairness Act and Kids Act Threaten Games

Europe is enacting multiple regulations that pose significant challenges to the mobile gaming industry. The EU's Digital Fairness Act (DFA) and the newly announced EU Kids Act aim to increase protections for minors and reduce addictive design practices, such as daily log-in bonuses and activity streaks. Industry experts warn these measures could be 'catastrophic' and liken them to a new 'IDFA moment'. The EU Kids Act, under Article 15, requires games to ensure high privacy and safety for minors, potentially banning engagement techniques for children. Age assurance is a central issue, with Video Games Europe advocating for PEGI and USK as de facto standards. The European Game Developer Federation expects the final Act by the end of the decade. These regulations, alongside the already active DSA guidelines for minors, create a 'triple threat' for game companies operating in Europe.

• The EU Digital Fairness Act (DFA) could impact in-app purchases, loot boxes, and addictive game features.
• The EU Kids Act, announced September 2026, includes Article 15 targeting online games to enhance minor safety.
• Under Article 15, daily log-in bonuses and activity streaks are likely to be prohibited for child users.

Security Incident at our Video Platform

Supercell announced a security incident at their video platform on 21 Oct 2026.