Gaming is currently the largest and fastest-growing type of entertainment, with three billion people actively playing games today, propelled by a new generation versed in the delights of interactive entertainment. Microsoft buying Activision Blizzard Inc., a pioneer in game creation and interactive entertainment content publishing, is thus an affair of global interest.
This purchase will drive Microsoft’s game business growth across mobile, PC, console, and cloud platforms, as well as supply building pieces for the metaverse. When the transaction is done, Microsoft will be the world’s third-largest gaming company in terms of revenue, trailing only Tencent and Sony.
Microsoft is displaying its resources in order to expand its gaming portfolio. Microsoft buying Activision, though, hits a bitter spot with Sony, and this adds up to a daunting boss battle for the latter, that is Microsoft’s rival in the video game system market.
On Wednesday, Sony’s stock fell 12.8 percent, the most in a single day since 2008. The Activision acquisition, which would be Microsoft’s largest, demonstrates the Xbox maker’s determination to spend more money on high-quality video game content.
The agreement would assist Microsoft in expanding its gaming portfolio, notably in what are known as AAA games such as “Call of Duty.” Last year, the technological powerhouse completed its $7.5 billion purchase of ZeniMax Media, the makers of renowned video game titles such as “Doom” and “Fallout.”
Asymmetric Advisor Amir Anvarzadeh told Business Standard that Sony will confront a major battle in standing alone in this war of attrition. With Call of Duty poised to be introduced solely to the Game Pass roster, Sony’s troubles will only get worse.
The primary fear for Sony investors is how the large acquisition would affect the whole video gaming industry. Sony had been ahead of Microsoft in the console race. More gamers may flock toward Xbox if the content inventory increases. Microsoft’s ambitions aren’t restricted to consoles. Xbox Game Pass, the company’s Netflix-style subscription product, has over 25 million subscribers.
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