The big deal between Microsoft and Activision in the eyes of analysts; Win for Xbox

Over the past few years, the number of companies buying and merging in the video game industry has increased dramatically and has become almost commonplace for audiences, but Haraz Occasionally there is a contract that nails everyone. The big deal between Microsoft and Activision in the eyes of analysts; Win for Xbox

Over the past few years, the number of companies buying and merging in the video game industry has increased dramatically and has become almost commonplace for audiences, but Haraz Occasionally there is a contract that nails everyone.

Some time ago, Tik-Tu managed to buy Zynga for $ 12.7 billion, which was a very big deal in its own right. However, news came shortly afterwards that shocked everyone; Microsoft acquired Activision Blizzard for a staggering $ 68.7 billion. This is not the biggest purchase of the last few years or even a decade; It is the largest contract in the history of the video game industry. In fact, GlobalData senior analyst Ropentar Goa goes even further, saying that Microsoft's acquisition of Activision Blizzard is "the largest acquisition in the history of all technology industries." However, a simple comparison shows that this contract is only a few billion dollars away from Disney's historic purchase of Fox by Disney, which means that it is one of the largest contracts in the history of entertainment and not just video games. The big deal between Microsoft and Activision in the eyes of analysts; Win for Xbox

Dr. Sarkan Tutu

Some time ago the popular site with a few A number of leading analysts have contacted and asked for their opinion on Microsoft's acquisition of Activision Blizzard. "This contract does not belong in this world at all and will definitely change the industry forever," said Dr. Sarkan Tutu of Kantan Games. I think the exclusive Xbox studios have not been able to compete with Sony for years. Microsoft had to look for a big solution, and Bethesda alone was not really enough. "As a result, the deal could change the game." He says the deal demonstrates Microsoft's determination to "correct the mistakes of the Xbox One era." It also looks like Microsoft intends to overtake Sony in the gaming industry and gain a higher position in this tough competition. If the problem of console and hardware shortages in the world is resolved as soon as possible, the addition of Activision Blizzard's popular franchises to Gimps could make the Xbox a very tempting choice for audiences. The Microsoft-Activision Blizzard deal could change the terms of shared services, publishers and the overall competition of the video game industry - both in console and cloud technology. "We knew something big was going to happen for Activision Blizzard," said David Cole, director of DFC Intelligence, who was shocked by the deal. However, we did not expect a company like Microsoft to come and buy it. Activision, Blizzard and King were really three unique companies and we were likely to separate and continue to operate independently. This is a good thing for the shareholders because the current value was placed on the company. Microsoft was one of the few companies that was present and could swallow the whole tablet at once; "As a result, it was really amazing."

As we all know for sure that the studios and all of Activision Blizzard games have been made available to Microsoft, it's a good idea to look at the other benefits that Xbox gets through this deal. Niko's Kazmas Hanson explains that adding all Activision Blizzard games to GamePads will dramatically increase the value of the service and make it a "key point" in the gaming industry in the future. "Most importantly, the deal includes the property rights of King and several Activision mobile studios," he added. The mobile gaming sector is extremely important to Microsoft because it wants to reach three billion players in the future. The combination of console games for Xbox that are accessible through cloud technology on mobile and other devices, along with Activision Mobile Studios, supports Microsoft's big apps well. "

" What I said is a strong presence in Asia Which is the largest region in the world for the video game industry. We estimate that this region accounts for 60% of the global PC and mobile gaming market revenue. Activision Blizzard has a stronger presence in Asia than Microsoft, perhaps because Microsoft has always focused on consoles and "Asians" are more pro-PC and mobile. Meanwhile, Japanese brands have taken over the Asian console market. The deal allows several pieces of the video game industry puzzle to fit together. Harding Rolls agrees, adding that Microsoft and Activision Blizzard support the Xbox Xbox strategy. And reduces its dependence on studios and other companies (Third-Party), which are "expensive" to acquire. "In general, I think the franchises that Microsoft has bought are Western-focused, and in some of the most popular mobile markets, Microsoft's influence is diminishing," he said. "The deal not only puts Microsoft in a good position to compete with Sony, but also allows it to compete more effectively with Tencent, which has a wide range of mobile games and cloud services." The big deal between Microsoft and Activision in the eyes of analysts; Win for Xbox

Cole points out that Microsoft can gradually outperform its competitors in the console space and compete with the likes of Google, Amazon, Facebook and Apple in a larger segment of the industry. Entertainment to compete. "The video game industry has become a much bigger space, and now Nintendo and Sony are struggling strategically to compete at higher levels," he explains. "So the long-term question is, are Sony and Nintendo - two small Japanese companies that are still very big in the video game space - attractive enough for audiences to be able to compete with big market competitors in the long run?"

  • Goodbye Consular War; PlayStation and Xbox are embroiled in a content war

The fact that Microsoft - as the owner of one of the major platforms - has taken over one of the largest publishers in the gaming industry will undoubtedly change the publishing space. . There have been concerns in the past about Microsoft buying Bethesda, but Activision Blizzard is much bigger and even more successful. A member of Midia Research adds: "Traditionally, there have been several large publishers who have ensured a level playing field in the consular ecosystem. No matter what console the audience had, they released their own big, successful game that did not attach much importance to the consular war. Two of the biggest games to convey this concept are Call of Duty by Activision and Jetty by Tick-To - which have been experienced by 55% and 41% of all console owners, respectively. No other title in Midia research has come close to the statistics of the two. Fortnite and Assassin's Creed are experienced by about 28% of players, followed by FIFA with 23% and Spider-Man with 17%. "Microsoft has now taken over the most experienced and popular title that could change the way content consoles compete in favor of the Xbox." The big deal between Microsoft and Activision in the eyes of analysts; Win for Xbox King, creator of Kennedy Crash, could bring Microsoft into the endless world and lucrative mobile gaming market

Blizzard by Microsoft also raised concerns among many about the integration and polarization of the video game industry. Baird chief analyst Colin Sebastian said in a report that the rising level of integration and acquisition of studios and companies "indicates an escalation of the war for content, resources and scale in an industry that is at the forefront of the digital media front." According to him, Microsoft is the pioneer of this new movement. Kazmas Hanson cited Niko Group's forecasts for 2022, one of which said the number of acquisitions and industry integration would increase this year. "2021 was a record year for these acquisitions - mostly because of Tencent's many large acquisitions - and it is clear that 2022 has already broken last year's records. "The question is, what does Tencent want to do now?" It was due to the failure of PlayStation. As you know, Sony announced the purchase of Bungee a few weeks later, but we all know that this contract has been going on for several months and there is no way for Sony to respond to Microsoft.

  • Why Microsoft's acquisition of Activision Blizzard is not to compete with PlayStation

Jijashvili believes Sony is now under pressure to react strongly to Microsoft's move, but the options are much more limited because it's a huge source of funding for Microsoft. Does not have. "Sony has made several different acquisitions recently but they were on a very small scale," he said, referring to the acquisition of studios such as Housemarque, BluePoint, Nixxes Software, FireSprice, Fabric Games, Valkyrie Entertainment and the Evo Fighting Tournament last year. In fact, Sony has evolved the studios associated with it. "

" The acquisition of Activision Blizzard may force Sony to take a bold step into the shared service space. It is even possible that Sony will release some of its exclusive big games from day one on its shared service to better compete with Gimps. Personally, I expect Sony to also increase its powerful and consistent operations and to pay more attention to PlayStation VR while developing more exclusive titles. I think if Sony wanted to respond to Microsoft in terms of content, it would have had to buy Tick-toe, which is unlikely. As of this writing, Microsoft's market value is about $ 2.3 trillion. In this respect, it looks like Sony (worth $ 146 billion) will come and make a $ 4.4 billion purchase. As a result, Sony does not have many options to respond to Microsoft here, unless it wants to get into financial trouble. "Sony has been able to sell more consoles than the Xbox so far, but Microsoft's deal with Activision Blizzard could have a significant impact on gamers' decision to buy the console." Blizzard has arrived. The company is now not only publicly criticized for gender discrimination, harassment, crunch, poisonous work culture, non-payment of fair wages and many more, but also faces numerous lawsuits. Harding Rolls thinks that all these problems have opened the door to Microsoft and some other buyers, so we know who ultimately won. In 2021, the value of Activision Blizzard shares had a downward trend, and from the beginning of February (when the publisher released its financial statistics) to the end of July (when the first formal complaint against the company was filed), the price of Activision Blizzard shares fell 7%. . By the end of July, by the time Microsoft officially announced its acquisition, the downtrend had reached 28 percent. The big deal between Microsoft and Activision in the eyes of analysts; Win for Xbox

Microsoft CEO Satya Nadella reassured everyone during a financial meeting with shareholders shortly after announcing the acquisition of Activision Blizzard - which now includes Activision will also become Blizzard - his first priority. "We support the goals and work that Activision Blizzard is doing, and we know that once the contract is finalized, we have an important task and that is to create a culture in which everyone can do their best," Nadella said. "These lawsuits will soon become a problem for Microsoft, and I trust Phil Spencer more than anyone like Bobby Kotik," Tutu added. In the long run, Kotik will leave the company - I see no other way in my mind. "I'm not sure what Blizzard's management will be like, but at King it's not so bad, so at least we know the mobile part of it is acceptable." Changing circumstances can bring many challenges. "I'm not sure it's a smooth integration. "Bobby Kotik is unlikely to report to anyone else, so he may consider that his work is over and he should continue his work elsewhere." Another inevitable issue is that at the same time as buying Activision Microsoft CEO Blizzard points to Metavers's ambitions Is. "While Metawares still remains a concept, Microsoft's high potential in areas such as artificial intelligence, augmented reality, virtual reality and cloud computing could make it a pioneer in this new trend," Ropentar Goa told GlobalData. Activision games will help Microsoft build the Metawares experience and have a global consumer base to test and sell its games. Slow down. This can be great for anyone using cloud services. "It also means that Microsoft's cloud services business will grow significantly over the next two years, while competitors in this market will be a few steps behind Microsoft." Jijiashvili says Microsoft's investment in cloud services is accelerating the industry as a whole, which will ultimately benefit Microsoft in various ways. After all, Microsoft is already working with Sony to develop cloud technology. "As publishers, game developers, and more device makers move in this direction, Microsoft finds itself in a position to guide others and offer solutions."

More has been created with this historic deal in the video game industry that we are not yet aware of. Surin says the acquisition of Activision Blizzard will likely enable Microsoft to take most of its market revenue from Steam: Britain and Australia have experienced. "Microsoft can finally take Call of Duty out of Steam so that more audiences are drawn to Gimps than ever before." The big deal between Microsoft and Activision in the eyes of analysts; Win for Xbox

Several analysts want to see how this big deal will be finalized and whether we might see it terminated due to legal and commercial issues in the United States. "When Activision bought Blizzard in 2008, lawmakers in the United States and Europe focused on it," Cole said. We now have a much bigger contract. Jijiashvili is a little more positive in this regard: "Microsoft has so far been able to avoid many of the difficulties that a company such as Meta (formerly Facebook) is facing. But without a doubt, the dimensions of this contract attract everyone's attention. "I expect this agreement to be scrutinized by lawmakers, but I do not think it will be finally stopped because of anti-trust laws." Understood the video game industry. "We do not know whether Sony will lose the big Activision Blizzard franchises in the long run or whether Microsoft intends to use their full potential on different platforms. If Microsoft wants to block the way on other platforms and use its monopoly muscles, players will definitely protest. "It will also be interesting for me to see how Microsoft is steering King and its policies in the mobile market for its larger goals." It relieved the minds of PlayStation players about the monopoly of Call of Duty. According to the contracts between Activision Blizzard and Sony, which were signed before Microsoft's acquisition, we knew that at least three future Call of Duty games would be released for the PlayStation, but Microsoft dispelled the growing skepticism. "First of all, some experts have questioned whether we will continue to release popular Activision content such as Call of Duty on competing platforms such as Sony PlayStation," the Microsoft website post said. The obvious concern is that Microsoft could release the game exclusively on the Xbox console, making it difficult for PlayStation users to access. To clarify the matter, Microsoft will continue to release Call of Duty and other popular Activision Blizzard titles until the end of each PlayStation contract.

Make them available on PlayStation so that Sony fans can continue to enjoy the games they love. We would also like to take similar steps to support the successful Nintendo platform. We believe this is right for our industry, gamers and businesses.


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