Microsoft Acquisition of Activision Blizzard 'Will Change the Industry Forever,' Says Analyst - NewsWilliam D'Angelo , posted on 02 February 2022 / 2,141 Views
Microsoft this week made the biggest acquisition in gaming history with the announcement it is acquiring Activision Blizzard in a deal worth $68.7 billion.
Kantan Games' Dr. Serkan Toto and many other industry analysts speaking with GamesIndustry discussed the impact the acquisition will have on the gaming industry.
"The deal is almost out of this world and will change the industry forever," said Toto.
Microsoft's first-party studios have been, at least in my mind, behind Sony's for the longest time. It needed a big solution to catch up to Sony, and Bethesda was not enough: this deal can be a game changer for them."
Parker Consulting's Nick Parker said the deal is about Microsoft's "obsessions to right the wrongs of the Xbox One era" and to set a goal of pushing Sony to third place behind Xbox and Nintendo. He said Activision Blizzard's franchises could make Xbox tempting for people who have never owned an Xbox console.
DFC Intelligence owner David Cole was surprised by the deal even if he knew something was going to happen with Activision Blizzard given the current situation.
"It was known that something was likely to happen with Activision Blizzard," said Cole. "However, we did not expect a company like Microsoft to come in and acquire it all. Activision, Blizzard and King were really three unique companies and the speculation was they could be split up. "For shareholders this is probably a best case scenario as the valuation is really solid. Microsoft was one of the only companies willing to swallow the whole pill so it was a surprise."
Niko's Cosmas Hanson added, "Importantly, this deal includes the acquisition of King and several other Activision-owned mobile game studios. Mobile gaming is critical for Microsoft to reach the three billion gamers worldwide. The combination of HD console games for Xbox being available via cloud for mobile and other devices plus Activision's dedicated mobile games development will support Microsoft's goal of platform, IP and geographic expansion.
"Both entities have a strong footprint in Asia, which is the largest region in the world for the games industry -- we estimate it represents more than 60% of the global market revenue of PC and mobile gaming. Activision Blizzard has a stronger presence in Asia than Microsoft, perhaps because the latter has focused on console and most of Asia favors PC and mobile. In addition, the Japanese console brands dominate console gaming in Asia. The acquisition allows for several pieces of the video game industry puzzle to fit together nicely, on a global scale."
Once the deal closes the number of first-party Xbox studios will grow from 23 to 32. The list of subsidiaries and divisions under Activision Blizzard include Activision Publishing, Blizzard Entertainment, Beenox, Demonware, Digital Legends, High Moon Studios, Infinity Ward, King, Major League Gaming, Radical Entertainment, Raven Software, Sledgehammer Games, Toys for Bob and Treyarch.
The most well known IPs that are owned by Activision Blizzard include Call of Duty, Warcraft, Candy Crush, Tony Hawk, Diablo, Overwatch, Spyro, Hearthstone, Guitar Hero, Crash Bandicoot, and StarCraft. In total there are well over 30 IPs owned by Activision Blizzard.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. You can contact the author at firstname.lastname@example.org or on Twitter @TrunksWD.