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For example, Swedish videogame group Embracer (EMBRACb.ST)
, opens new tab went on an acquisition spree over the last three to four years, buying up dozens of smaller studios and beefing up its portfolio of games. However, poor critical reviews for big titles and canceled projects hit the firm, leading to a three-way split of the company last year.

"Consolidating IP during a down market has its short-term benefits, but more often than not, ends up running into inefficiencies and a devaluation," said Joost van Dreunen, games professor at NYU Stern School of Business.