Did Microsoft Bought Activision Blizzard to Fight Meta?
Microsoft Corp has bought Activision Blizzard, maker of the "Call of Duty" game for $68.7 billion. This is the biggest gaming industry deal in history.
According to Refinitiv data, the Microsoft-Activision deal is the largest acquisition on record, beating Bayer's $63.9 billion bid for Monsanto in 2016 and InBev's $60.4 billion offer for Anheuser-Busch in 2008.
The deal will increase its firepower in the booming video gaming market. As well as part of this American multinational's bet on the metaverse.
"Games are the most dynamic and engaging category of entertainment across all platforms today and will play a key role in the development of the platform metaverse," said Microsoft Chief Executive Satya Nadella.
Data analytics firm Newzoo expects the global gaming market to generate $180.3 billion in revenue in 2021, and expects it to grow to $218.8 billion by 2024.
Microsoft already has a significant foothold in this sector as one of the three major console makers. They have made investments including buying "Minecraft" makers Mojang Studios and Zenimax Media Inc. in billion-dollar deals in recent years.
According to Newzoo, Microsoft's gaming market share is 6.5% in 2020 and adding Activision would take it to 10.7%.
Executives spoke of Activision's 400 million monthly active users as one of the main highlights of the deal and how important it is for this community to be able to play in Microsoft's various metaverse games.
Activision's game library can give Microsoft's Xbox gaming platform an edge over Sony's PlayStation, which has enjoyed a more stable stream of exclusive games for years.
Tech companies from Microsoft to Nvidia have placed big bets on the so-called metaverse, with rumors surrounding it rising late last year after Facebook changed its name to Meta Platform to reflect its focus on its virtual reality business.
Did Microsoft Bought Activision Blizzard to Fight Meta?
Microsoft CEO Satya Nadella said that the purchase of Activision would propel the company into the metaverse, an immersive, virtual and interactive world that Big Tech is currently building.
Facebook Inc first announced the development of metaverse technology in October 2021. This technology is touted as a future human project that helps people connect, find communities, and grow their businesses in cyberspace.
Facebook Inc first announced the development of metaverse technology in October 2021. This technology is touted as a future human project that helps people connect, find communities, and grow their businesses in cyberspace.
Microsoft and Facebook are both involved in the metaverse. That is, there may be competition between them. Metaverse is being targeted by big companies, because they have seen the future of the metaverse.
Most have guessed, that the switch from Facebook to Meta.inc, was due to the declining stock value. Facebook has focused on the metaverse because there is a huge opportunity to impact the company.
Microsoft doesn't want to be left behind with Facebook. It has bought Activation to add ammunition to build a metaverse, one of which is in the game world.
Post a Comment for "Did Microsoft Bought Activision Blizzard to Fight Meta?"