News broke of Microsoft bought Activision today and was understandably the talk of the internet. It is Microsofts biggest deal to date with a $68.7 billion dollar price tag. Bloomberg Technology posted 5 reasons they think Microsoft made this move so not only will we take a look at those but also what we think might happen because of the deal!
Microsoft is setting itself up very nicely with buying Activision. While there has been plenty of controversy surrounding the gaming studio Microsoft executives have said they won’t make any comments on the controversy until after the deal is complete. So while we will have to wait for that what we do know is this deal will very likely put Sony in a rough spot. The other gaming giant has been rivals with Microsoft for some time now but this seems like the biggest blow in years.
So much is being gained by Microsoft with this deal and we feel it will be on Sony to react accordingly to really keep themselves in the game. Shares have already fallen quite a bit and with time the pressure will likely only get higher. Microsoft will likely be taking a huge step into the Metaverse and making moves to summit themselves as front runners of the newest gaming and non-gaming worlds.
Size – If the deal is allowed to go through Microsoft would then become the 3rd largest global gaming company. Behind only Tencent, the publisher of League of Legends, and Sony the makers of Playstation and long-time rival of Microsoft. With news of the deal hitting Sony shares also reportedly dropped a massive 9.6%. It’s Sony’s biggest drop since 2020 and is already showing what effect this deal might have long term.
Mobile – Next on the list Bloomberg Technology sites Mobile gaming. Mobile is the fastest-growing segment of gaming and while many hardcore gamers aren’t huge fans of Mobile games the rest of the world seems to be. Before this deal, Microsoft had next to nothing in the Mobile gaming world but will instantly jump the charts with Candy Crush now being under their name.
App Store Fees/ The Three C’s – Reason’s 3 and 5 are App Store Fees and The Three C’s. The Three C’s being cloud, content, and creators. Microsoft has tried in the past to buy other brands such as TikTok, Pinterest, and Discord. If this deal goes through Microsoft will have finally made their goal a reality. As for the App Store Fees, obviously, Microsoft would like to avoid all outside fees being that from Apple or Google. How well this will work out is still yet to be seen but we will keep a close eye on it.
Metaverse – Finally we have the Metaverse, a vastly unknown area that is just now up and coming. Every tech company known to man will try and have a hand in what plays out with the Metaserse so it’s no surprise to see Microsoft try and find a way to strengthen their communities likely to take part in the Metaverse.
Microsoft bought Activision will likely be talked about for some time and we are very excited to see what will come of it. Much is still very much unknown and we will keep up with all the important updates that come along for you. Be sure to check back at Gamescoutr.com for all your gaming news needs!