GameStop Corp., the go-to retailer for video game consoles and accessories, recently trumped Sycamore Partners' Hot Topic to buy Geeknet, the parent company of online shopping hub ThinkGeek. The deal allows GameStop to broaden its appeal beyond games. Hot Topic runs the gamut of pop-culture themed items, from comics and toys to gadgets and apparel. GameStop is just one of many big names in the video game sector wielding M&A. Here’s a look at recent deal activity.

As more video games are streamed through mobile devices, companies across the industry's verticals are changing their growth strategies. With fewer customers showing up to store chains to buy games, video game purveyors are hustling to adapt. These days, Sega Corp. and other video game companies are using M&A to catch up with technology and appeal to a wider, more smartphone-equipped, audience.

When Sega went on a buying spree in early 2015, the video game company was making the necessary moves to stay relevant in an industry that has been redefined in recent years. Still bruised by the financial losses incurred from their Dreamcast video game system, Sega began focusing on providing software as a third-party developer, exiting console manufacturing completely - a wise choice considering the days of sitting in front of a television set are dwindling.

The popularity of mobile gaming is reflected in the fact that revenues are expected to surpass console gaming sales for the first time ever in 2015 and hit $45 billion by 2018, according to a report from investment bank Digi-Capital released in May. It's also the sub-sector seeing the most consolidation, the report notes.

In March, Nintendo Co. (TYO: 7974) purchased a $181 million stake in DeNA Co. Ltd. as a way to bring popular games such as Super Mario and Pokemon to smart phones - something the company has never done. (Pictured, from left: DeNA CEO Isao Moriyasu and Nintendo President Satoru Iwata)."Games M&A has become increasingly strategic, such as the recent Nintendo and DeNA deal combining shareholding with commercial partnership to pivot into mobile," says Digi-Capital managing director Tim Merel. "Similarly, acquisitions to move into new game genres are on the rise," he adds, citing the $150 million purchase of Seattle mobile games company z2 by King Digital Entertainments. Z2, backed by Madrona Venture Group and known for titles such as Battle Nations and Metalstorm.

Companies that specialize in bringing detailed graphics and fast-paced gaming to mobile devices are proving to be hot targets, explains Aaron Solganick of Generation Equity Advisors LLC, a West Hollywood-based investment bank specializing in tech M&A and digital entertainment. Tokyo-based Sega, the company behind Sonic the Hedgehog, set up shop in San Francisco and proceeded to pick up three separate companies in February: Demiurge Studios, Ignited Artists and Space Ape Games.

When a slate of companies such as these gets sold, it is indicative of how valuable their intellectual properties are, as well as the team of talented gaming engineers that could join the buyer as part of an acqui-hire, Solganick adds. Cambridge, Massachusetts-based Demiurge,for example, is known for its original characters and games, such as Shoot Many Robots. The company also utilizes popular licensed characters, such as Marvel Puzzle Quest, a superhero game featuring The Avengers.

Sega had already been familiar with San Francisco-based Ignited Artists, having participated in a funding round for the mobile game startup. The company also expanded its footprint in Europe by making a minority investment in London-based Space Ape Games, a studio that develops Rival Kingdom and Samurai Siege (pictured).

Sega's acquisition streak underscores how enticing these companies can be to strategic buyers and private equity firms alike, but it often hinges on how well the properties resonate with audiences. Atari Inc., for example, helped give birth to the modern-day videogame industry with the introduction of now-classic games such as Asteroids and Pong. However, financial troubles over the years and a series of restructurings, as well as bankruptcy, forced it to shift away from traditional videogames to digital games and licensing for titles such as RollerCoaster Tycoon. "They had one of the best brands in the entire world and they still develop games today that people don’t even think about," Solganick says.

Atari filed for Chapter 11 in 2013, saying it wanted to sell its portfolio of more than 200 video games to a highest bidder. After reaching out to more than 180 potential purchasers from the video game and financial worlds, Atari decided to sell the assets off in pieces. Evergreen Group, a private equity firm, paid $1 million for the Backyard Sports title—a low valuation and the only one deemed an acceptable offer throughout the company's bankruptcy process. "We looked at the whole component of Atari," says Evergreen managing director Jim Wagner, who plans to keep inking deals in the space. "Mobile gaming is growing in double digits," he adds. "Our thought is that the gaming industry overall is interesting and compelling."

Amazon.com Inc. (Nasdaq: AMZN) is another active acquirer, purchasing Double Helix Games LLC, an Irvine, Calif.-based studio known for the game “Killer Instinct,” for an undisclosed price in 2014. The deal is reportedly meant to bolster Amazon’s goal to produce its own gaming console to compete with Nintendo and Sony Corp. (NYSE: SNE), maker of PlayStation. That deal was followed by the $970 million purchase of Twitch Interactive, a popular Internet streaming channel for uploading and watching people play video games.

Alibaba Group Holding Ltd. (NYSE: BABA ), flush with cash following its 2014 initial public offering, is also interested in the video game sector. Kabam Inc., a maker of free-to-play games such as Kingdoms of Camelot, has raised more than $244 million in venture capital, including a $120 million investment from Alibaba in July 2014. The San Francisco company's other backers include Canaan Partners, Intel Capital, Redpoint Ventures, SK Telecom Ventures, Pinnacle Ventures, Google Ventures and Performance Equity Management. Kabam followed up its 2013 buying spree with a 2014 purchase of Phoenix Age, a San Francisco-based company that developed Castle Age and Underworld Empire.

Pocket Gems Inc., maker of Paradise Cove, is also based in San Francisco. The companies were founded in 2006 and 2009, respectively. Since then, both are currently impressing potential buyers with their tech savvy teams, intellectual property (IP) rights and characters that are tailored for mobile users and Internet streaming. "A lot of the companies making these games are independent and VC backed," Solganick says. "They'll stay on for three to five years and then they'll exit."

Other potential targets include Valve Corp. Tiny Co., Peak Games and Crytek. Corporations are managing their cost bases and looking to buy small, independent studios with "unrealized hit potential," according to Digi-Cap founder Tim Merel. That way, they can plug the properties into their own infrastructure and marketing. Breakout companies with high quality games and high downloads on handheld devices, are being pursued more than ever.