Facebook’s transition into Meta Platforms FB and Mark Zuckerberg’s big push into the metaverse — the concept of a shared 3D virtual platform where people can socialize, work, and play — spurred a sector-wide move by tech companies to branch out into other areas like gaming.

The burgeoning gaming industry has transformed into a $198.4 billion sector in 2021, far exceeding the combined market size of the box office and the music industry, according to market research firm Mordor Intelligence.

Meta and VR gaming

Even before Meta announced its push into the metaverse in October 2021, the social media behemoth has built a presence in the gaming market with its acquisition of virtual reality company Oculus in 2014. Meta’s foray into the metaverse would make its Oculus VR headsets more appealing to the market amid strong competition against other VR headsets in the market like HTC’s (TPE:2498) HTC Vive and Sony’s SONY PlayStation VR.

A sharper focus on gaming would encourage Facebook to double down on its investments in the gaming sector far beyond hardware and building a metaverse. The company, which also owns Instagram and WhatsApp, could soon build an army of tech talents that specialize in gaming.

Meta gobbles up gaming studios

In the months before it rebranded into Meta, Facebook went on an acquisition spree buying small gaming studios. Among its most recent acquisitions in the gaming space are studios Ready at Dawn, Unit 2 Games, VR firm BigBox VR, Downpour Interactive and Sanzaru Games.

However, Meta has yet to spend billions of dollars on a gaming company since its acquisition of Oculus in 2014 for $2 billion, raising the prospect of a potential acquisition of a larger gaming studio similar to recent moves by Sony, Microsoft MSFT and Grand Theft Auto publisher Take-Two Interactive TTWO.

Multi-billion gaming deals

Three multi-billion dollar gaming deals welcomed the year in January, starting with Take-Two’s plans to buy mobile video game company Zynga for $12.7 billion, which was thought to be the gaming industry’s biggest acquisition on record until Microsoft announced that it is buying Activision Blizzard ATVI, the studio behind the Warcraft, Diablo, Overwatch and Call of Duty franchises, for $68.7 billion in cash.

Microsoft said the deal would make it the world’s third-largest gaming company in terms of revenue behind Tencent (HKG:0700) and Sony. Two weeks later, Sony said it is buying Bungie, the video game developer behind the Destiny and Halo franchises, for $3.6 billion.

Which gaming studio is Facebook eyeing?

With Meta’s intentions to promote the metaverse concept, industry watchers are now waiting for the company’s next big move. Meta will likely look to gobble up a gaming studio with a massive presence in the market such as France’s Ubisoft UBSFY, the developer behind Assassin's Creed and Prince of Persia. Ubisoft CEO Yves Guillemot last month hinted that it is open to offers from companies. Roblox RBLX, Playtika Holding PLTK and Super League Gaming SLGG are also likely targets if Meta chooses to snap up the bargains on these companies after their shares tumbled to near record lows recently.

In June 2021, Meta bought Unit 2 Games, the studio behind Roblox-like gaming platform Crayta.