My take on the results in that situation? Mergers leave more room to grow for smaller companies.
Look at Bank of America for example. People were very worried that they would have too much capitalization of the market, but instead Wachovia has grown, foreign banks are coming in, and service banks like Bank Atlantic (mostly in Florida FL, some are open 24 hours) have adapted by offering new or extended services.
Another example is Wal-Mart. While people were concerned that Wal-Mart would ruin any chance at retail competition, Target had also grown by offering cleaner, better stores. Small retail stores still do well in more urban areas, and very well in large cities. Specialty department stores have begun to grow in response too; Bed Bath and Beyond, Best Buy, Stein Mart, Furniture Stores, etc. Malls are still a big draw also.
How does this relate to video games?
Let say EA and Ubisoft merge, heck throw in Sony and Take Two also. When this happens companies lose alot of their cash capital. It cost a lot of money to buy a major developer or publisher. They won't be able to take the same amount of risk because the investors (the ones who aren't scared away), banks, and board members are going to hold the leash pretty tight.
Activision is still becoming cash rich from Guitar Hero and can risk publishing more games from smaller developers. Majesco has seen tremendous success from DS and Wii games (relative to their size) and can invest in making more titles, higher budget titles, or even publishing for other developers. D3 is seeing growth and looks to make some money off of several of the middle budget Wii games, they are going to grow. Conspiracy is coming out with many value/low-budget games that will probably bring in some money. Sega has a wealth of intellectual capital that gamer are dying to give their money up for. Capcom going to continue to make a fortune off of RE games, Megaman, and some of their more risky ventures are bound to pay off (especially on Wii, 360, and DS). Nintendo and MS will invest more in development tools or intellectual leases (really a form of payoff, see: PS3 and UT3, Nintendo giving Sega Mario for S&M at the olympics) to get the smaller third parties to bring over there more risky ventures. Too.... tired... to... keep... typi...n...g.
I would cite regulation, but I know you will simply ignore it.
