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Changing acquired studios' core identity consistently leads to doom, says Nightdive Studios CEO

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Changing acquired studios' core identity consistently leads to doom, says Nightdive Studios CEO

Why don't large publishers acquire companies and let them do what they do best?

Game industry professionals have every reason to jump at the word "acquisition" in 2026. After a barrage of major roll-ups and mergers from 2020 through 2022, the crushing layoffs that have taken place at the companies that went on extreme spending sprees loom large over every new high-profile transaction. Atari was one such company—but so far it's avoided any such cuts, and has continued its spending spree through 2026.

These haven't been cheap purchases either. Atari's slate of acquired companies include organizations like Crossy Road developer Hipster Whale, MobyGames, Digital Eclipse, and Nightdive Studios, each transaction going for anywhere from $1 million to $40 million, with other transactions and investments still in motion. So far those financial moves seem to be paying off—and according to Nightdive CEO Stephen Kick, it's partly because Atari has done little to muck with its business model of remastering and remaking classic games.

Related:Sucker Punch lays off 24 to align with 'current market', 'next project needs'

Speaking to GameDeveloper.com at PAX West 2026, Kick explained that life under Atari has been going "really well," and that the company has successfully removed certain logistical barriers like payroll management, tax duties, and other operational responsibilities that aren't "game development centric."

His positive outlook is a rare one to encounter of late, given the aforementioned disasters that have befallen many purchased game studios. As CEO he's certainly in a position to be biased about his company's state of affairs, but he made a compelling case to back up his point.


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