Microsoft CEO on Activision Blizzard Acquisition Approval: 'We Will be Number 3' - News
by William D'Angelo , posted on 03 March 2022 / 4,711 Views
Microsoft CEO Satya Nadella speaking with the Financial Times was asked if Microsoft would need to work hard to convince regulators to allow Microsoft to acquire Activision Blizzard.
Nadella said that even with Activision Blizzard, Microsoft would only be the third biggest gaming company with a marketshare in the low-teens.
"At the end of the day, all the analysis here has to be done through a lens of: 'what's the category we're talking about, and market structure?'" said Nadella.
"And what about the market structure? Even post this acquisition, we will be number three with sort of low-teens share [of the gaming market], where even the highest player is also [in the] teens [for marketshare]. It shows how fragmented content creation platforms are. And so, that's the fundamental category. Yes, we will be a big player in what is a highly fragmented place.
"Also, the analysis will have to extend to say 'why are these content companies trying to become bigger?' It's because the place where the constraints really are is distribution.
"The only open distribution platform for any gaming content – guess what? – is Windows. The biggest store on Windows is Steam. It's not ours. People can do any payment instrument, whereas all the other gaming distribution platforms are closed.
"To some degree, that's why we are very hopeful that, by becoming stronger, even with low share, we can create more distribution for many small players, using things like xCloud."
Microsoft last month announced its plans to acquire Activision Blizzard in a deal worth $68.7 billion.
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 wdangelo@vgchartz.com or on Twitter @TrunksWD.
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While this is absolutely true, make no mistake that Microsoft knows they are in a heightened regulatory environment and this is a calculated statement.
I do think this deal will pass regulatory review, but it should be stressed that the law is written broadly enough that being third in revenue in the industry is not enough by itself to just sail through. This will be a long drawn out process
Yeah, they bought their way past one of their direct competitors.
I wonder if they are ever going to take away the $1 conversation from Gold, as long as people are paying around $3 a month for Gamepass ultimate there is no way Microsoft is actually going to turn a profit on gamepass.
I wonder how many people are doing that.....
I have an Xbox one S and have gamepass, I'm not sure if I can be a an Xbox hater if I have the service. Yes I agree there are probably a lot of people that don't do the research when purchasing something. I research most purchases for weeks before I buy something. Hell I still have things in my Amazon saved cart from 2008. Anyone that goes to websites that discuss saving money on items and services are going to find easy ways to purchase Gold cheaply although most of them these days require a vpn to buy them and do the conversion.
I felt embarrassed how much value I got out of Game pass for the last 2 months so I paid full price. Maybe if my Xbox is collecting dust I'd want a lower price, but I doubt that many people are bothering. That's actually one of the strengths of subscription services, you get used to it and don't bother changing anything.
Thing is MS isn't worried about turning a profit right now. They are just focusing on getting people to signup and use it. They are effectively in a growing phase. Once they are satisfied with their growth will see that sort of stuff start to go away. Price increases will follow soon after I'm sure. As well as discounts for people who sign up yearly.
let it run out completely then buy 1-3 years of gold then add 1 month of ultimate and it converts it all to ultimate.. ive done it couple times now
Oh no Diablo 4 and Call of Duty 4 Modern Warfare Reflex Edition would've been perfect on the Switch!
Oh the poor old second biggest company in the world. Trying to cuckoo its way to top of the gaming! Ooohhh dont look at us, were only third. Boohoo! Poor Satya! Of course being third is why they're doing this! They hate being the bridesmaid!
I suspect Microsoft HR is going to "Kick names, and take ass" if the Acti Blizz acquisition goes through.
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