Firm Survival and M&A in the European Video Game Industry

This article examines firm consolidation in the European video game industry, focusing on development and publishing companies. Drawing on organisational ecology and industrial organisation theory, it analyses how organisational maturity, resource structure and market conditions shape two related but distinct outcomes: firm non-survival and merger and acquisition (M&A) probability. Using firm-level data from 15 European countries over the period 2009–2020, the empirical analysis applies Probit models with a Mundlak correction and rare-events logit models for M&A. The results show that age has a non-linear effect, while foreign corporate group affiliation reduces both non-survival and subsequent acquisition probability. Stronger capitalisation and liquidity reduce firm vulnerability, whereas acquisition is more closely associated with firms that have accumulated organisational and financial value. Market density increases non-survival, while concentration is linked to M&A. The article provides novel firm-level evidence on structural adjustment in the European video game industry.