It was on 8th January that the tech giant Microsoft declared it would pay $67.7 billion to gain Activision Blizzard, making it the most significant acquisition ever. The predictability report says that the transaction will be over by 2023.
If you really want to know by Microsoft is ready to spend so much money on a gaming company, what are the various benefits and challenges of this deal and what about the gaming industry’s future, then check this out.
There are several reasons for Microsoft to initiate the deal and financial transaction. It gives Microsoft a significant footing in the mobile game industry. There are game manufacturing brands like Call of Duty Mobile and Candy Crush. Activision Blizzard is a substantial player in the mobile gaming sector. Ultimately, it will allow Microsoft to compete with other gaming giants like Tencent and Sony.
Second, the purchase adds a sizable game catalog to Microsoft’s collection. Popular games created by Activision Blizzard in the past include World of Warcraft, Diablo, and Overwatch. This will provide Microsoft with a vast array of games. As a result, Microsoft will have a wide selection of games to offer Xbox Game Pass customers.
Third, the acquisition offers Microsoft access to a sizable talent pool. There are a lot of skilled developers and artists at Activision Blizzard. This will assist Microsoft in strengthening its capacity for game development.
Microsoft made a significant move by purchasing Activision Blizzard to strengthen its presence in the gaming sector. It will allow Microsoft to enjoy a competitive edge in the mobile gaming sector. It likewise offers Microsoft access to a substantial game catalog and talent pool. It will help Microsoft enjoy the power of a significant player in the gaming sector.
We will discuss some prime or main benefits that Microsoft will gain from buying Activision Blizzard:
Market share growth: After gaming behemoths like Tencent, Sony, and others, Microsoft will enjoy the power of the third-largest mobile gaming manufacturing brand in the world.
More games: Activision Blizzard’s well-known properties, like Call of Duty,
Diablo, and World of Warcraft, will be available to Microsoft.
A huge number of Xbox Game Pass subscribers: Having access to a more extensive selection of subscribers, Microsoft’s game subscription service may witness an upsurge in users.
Revenue growth: Microsoft, the tech giant, expects the acquisition to produce a revenue of about $9 to $10 billion.
Activision Blizzard’s acquisition by Microsoft represents a triumph for the business and might significantly affect the gaming sector. It will be fascinating to observe how Microsoft integrates Activision Blizzard’s services and games into its own ecosystem.
Here is a list of some probable challenges that Microsoft might experience as a result of the acquisition:
System regulators are about to assess the transaction from a close view as they may get concerned about expanding the market dominance of Microsoft.
Challenges of integration: It will take time and effort to integrate the operations and culture of Microsoft with those of Activision Blizzard.
Morale among employees: Some Activision Blizzard staff members may be dissatisfied with the acquisition and decide to leave the company.
Despite these issues, the acquisition of Microsoft by Activision Blizzard is a significant chance for the gaming firm to grow its gaming industry and set itself up as a more powerful player in the market.
The $68.7 billion merger with Microsoft makes it the most expensive video game purchase in history.
The agreement will grant Microsoft ownership of the world’s most popular video gaming franchises, including Call of Duty, Candy Crush, and Warcraft. In 2023, the deal is going to get finalized.
According to Microsoft, the acquisition will enable the tech behemoth to expand its gaming division and take on Nintendo and Sony. The purchase has drawn criticism from some, who claim that it may influence Microsoft excessively in the video game industry.
The following are some possible effects of the purchase:
More gaming options: Activision Blizzard titles will reportedly be made available across all platforms, including PlayStation, Xbox, and PC, according to Microsoft.
The acquisition of Microsoft by Activision Blizzard will make it a strong participant in the gaming business, adding more competition for Nintendo and Sony. Sony and Nintendo, the other two significant game businesses, may face increased competition.