State of Play: The Video Game Industry — with Joost van Dreunen

Regulation

The regulatory landscape for gaming mergers is becoming increasingly complex, with significant challenges arising from both proponents and opponents of such deals. Joost van Dreunen highlights the role of the FTC under Lena Khan, which has made strides in simplifying the process, yet the UK Competition and Markets Authority's opaque documents reveal a lack of understanding of market fundamentals 1. Joost argues for a more transparent and simplified policy-making process to properly evaluate large mergers.

The increasingly opaque policy environment in which large mergers take place. And this is something that's coming both from the people in favor of mergers and the people not in favor of mergers.

--- Joost van Dreunen

Scott Galloway and Joost also discuss the absence of major Chinese companies like Tencent in these regulatory conversations, despite their significant influence in the gaming industry 2.

   

Asian Influence

Asian companies, particularly Tencent, are reshaping global gaming dynamics through strategic mergers and acquisitions. Joost notes Tencent's position as the largest gaming company globally, with deep ties to the Chinese government, which both accelerates and limits its ambitions 1. Despite heavy regulations in China, Tencent is pursuing a global strategy to expand its influence.

The Tencent is by far the largest game company in the world, $33 billion globally per year.

--- Joost van Dreunen

Scott Galloway2.