Microsoft’s acquisition of Activision Blizzard will be one of the largest in gaming industry history. This will give Microsoft access to iconic video game franchises that are popular with gamers worldwide. Read more Rajkotupdates.News : Microsoft Gaming Company To Buy Activision Blizzard For Rs 5 Lakh
However, some gamers are worried that this acquisition could lead to a monopoly and less diversity in the gaming industry.
1. Expanded Gaming Portfolio
The acquisition will give Microsoft access to some of the most popular gaming franchises such as Call of Duty, World of Warcraft, and Candy Crush. This will enable them to boost their presence in the smartphone gaming segment and expand their game subscription services.
It will also help them diversify their revenue sources through game sales, in-game purchases, and esports events. This will help them maintain financial performance in the face of declining console sales.
However, it’s important to note that the acquisition will not be without challenges. These include integration issues and antitrust concerns.
2. Strengthened Market Position
The deal gives Microsoft a massive boost in the growing cloud gaming market. It already accounts for 60-70% of global cloud gaming services, thanks to Xbox, its PC operating system (Windows), and the Azure cloud service.
But critics fear that Microsoft could use its dominance to lock rivals out of the lucrative subscription gaming market and slow innovation over time. The US Federal Trade Commission sued to block the deal late last year over antitrust concerns. But it could still go through if it addresses regulators’ concerns.
3. Enhanced Game Pass Subscription Service
From music to film to video games, subscription services have become a popular option for consumers. Microsoft’s Xbox Game Pass is a prime example of this trend, offering subscribers a library of titles that’s continually expanding.
2022 was a banner year for Game Pass, with the addition of Cold Symmetry’s action RPG Mortal Shell and Tango Gameworks’ cathartic rock-n-roll story Hi-Fi Rush. Additionally, Day One releases are regularly added to the service, including Zenimax’s games after the company’s acquisition and Bethesda’s upcoming Starfield and The Elder Scrolls VI.
4. Access to Development Expertise and Talent
Microsoft has already blown past rivals like Sony in the cloud gaming space, where it has 60% to 70% of the market share. Adding the hugely popular franchises of Activision Blizzard could make it even more dominant.
Microsoft has also agreed to allow third-party gaming providers access to the company’s games, which will help address concerns raised by the UK and US regulators about the deal. Hopefully, this will be enough to convince the regulators to clear the acquisition.
5. Diversified Revenue Streams
Diversifying revenue streams is a key part of building a profitable business. This can be done in a number of ways, from adding new products to increasing existing ones.
This deal gives Microsoft access to popular titles such as Call of Duty, Overwatch, and World of Warcraft. It can then pair those games with its subscription-based Xbox Game Pass service and cloud gaming platform.
The UK’s Competition and Markets Authority weighed the benefits of this acquisition against concerns that it would give Microsoft too much control over the games industry’s future.
6. Synergies and Cost Savings
The acquisition of Activision Blizzard will give Microsoft a boost in the gaming industry. It will provide it with a wide range of games and IP that will increase its competitive edge.
This deal also gives Microsoft an entry into the metaverse, a new internet trend that could potentially take the form of immersive virtual worlds. It is one of the biggest tech companies betting big on this nascent technology.
However, the deal still needs to get approval from US and UK regulators. They may block it or approve it with conditions that preserve competition in the market.
7. Expansion into Esports
Microsoft’s acquisition of Activision Blizzard will bring in lots of high profile games, like the hugely popular Fallout and The Elder Scrolls titles. It will also give the company a presence in esports with its BlizzCon events and League of Legends tournaments.
This could be a major benefit for Microsoft’s efforts to convince regulators to approve its purchase of the gaming giant. Regulators have concerns that the deal would give Microsoft a stranglehold on the cloud gaming market.
8. Strengthening Microsoft’s Gaming Ecosystem
The acquisition of Activision Blizzard will strengthen Microsoft’s gaming ecosystem, including its Xbox console and Game Pass subscription service. This will allow the company to compete more effectively with rivals like Sony and Nintendo.
However, there are several challenges that Microsoft will have to address, including integration and antitrust concerns. It will also need to maintain the quality and innovation that has made Activision Blizzard games popular among gamers.
By addressing these challenges, Microsoft can realize the full potential of its purchase and ensure long-term success in the gaming industry.
