Microsoft is in the process of acquiring game developer Activision Blizzard at $95.00 (R1,460) per share, in an all-cash transaction valued at $68.7 billion (just over R1 trillion).
This is the biggest acquisition in gaming history and Microsoft believes that it will bolster growth in its gaming prospects across PC, mobile, console, and cloud.
Microsoft has prioritised Activision’s intellectual property (IP) – which will broaden its Game Pass portfolio and increase its presence in the mobile market.
Microsoft’s Game Pass expansion
Microsoft is “betting big” on its plans for the future of its Game Pass. The service, where gamers pay a monthly subscription fee to have access to a wide variety of top-tier titles, had over 25 million subscribers as of January 2022.
Combining this with Activision Blizzard’s 400 million monthly active players worldwide and its billion-dollar franchises – Call of Duty, Diablo, and Halo – could make Game Pass one of the most diverse lineups of gaming content in the industry.
Additionally, mobile is the largest segment in gaming, with almost 95% of all gamers playing on mobile devices worldwide. This means, with games like Candy Crush and CoD mobile, Activision Blizzard’s mobile presence represents a serious opportunity for Microsoft to introduce more fan favorites to the mobile platform.
Exclusivity
Although the prospects of a more impressive Game Pass sound great, it doesn’t sit well with PlayStation gamers. When the deal was announced, many PlayStation fans were worried that popular titles such as Halo and Call of Duty would become Xbox and PC exclusives.
However, Microsoft has assured Sony followers that all existing contractual agreements before the acquisition of Activision Blizzard will be honored. This means that the next three CoD titles will still release on PlayStation – but there have been no promises by Microsoft that popular franchises will remain on PlayStation once the prior agreements are fulfilled.
PC gamers might be the biggest winners
This deal is great news for PC gamers. It will further expand the variety of games offered on PC without the need for a console – as Microsoft is doubling down on the Game Pass model with the addition of Xbox Cloud Gaming.
This gives PC gamers a serious value proposition in the form of the PC Game Pass – which will offer access to all Xbox-exclusive titles on launch day.
Microsoft also plans on releasing Activation Blizzard exclusives straight to steam where you can buy a preferred title once off.
Potential Big Tech monopoly
Although this deal offers great benefits to many in the gaming community, there is a concern that the deal could give Microsoft a monopoly that could hurt the gaming industry in the future.
Due to the size of this deal, regulators will examine the deal carefully to ensure that it does not constitute a monopoly.
However, this worry remains in the backseat as the deal will also be subject to customary closing conditions, and Activision Blizzard’s shareholder approval. The deal is only expected to close in the fiscal year of 2023.
Read: Elex 2 releases on 1 March – here are its PC system requirements
Loading ...
