Rajkotupdates.News : Microsoft Gaming Company To Buy Activision Blizzard For Rs 5 Lakh

The acquisition of Activision Blizzard will help Microsoft expand its gaming portfolio, boost revenue, and compete with rivals like Sony and Nintendo. In addition, it will accelerate the company’s efforts in mobile gaming and cloud gaming. Read more Rajkotupdates.News : Microsoft Gaming Company To Buy Activision Blizzard For Rs 5 Lakh

The deal will give Microsoft access to popular franchises such as Call of Duty and World of Warcraft. It will also bolster its presence in the smartphone gaming market, using Activision’s previous success with mobile games such as Candy Crush.

Why Microsoft is buying Activision Blizzard?

Microsoft’s plan to buy Activision Blizzard puts it in control of some of the world’s most popular video games, from military shooters like Call of Duty to MMORPGs such as World of Warcraft and to mobile hit Candy Crush. These franchises, along with EA’s Fifa soccer series and others, generate billions in revenue each year from millions of players who often spend big money on in-game purchases. Microsoft is betting that the popularity of these titles will help it compete against Sony’s PlayStation in the console market and attract customers to its Game Pass service, which offers a rolling selection of titles for a monthly subscription fee.

However, many critics argue that Microsoft will own too much of the industry and harm consumers by limiting competition. The US Federal Trade Commission is suing to block the deal, and UK regulators are also considering their options. If regulators can’t stop the acquisition, they could impose conditions that would preserve competition such as requiring that Activision Blizzard games remain multiplatform.

Advantages

Microsoft is a tech giant with its fingers in many pies, including home computer software, Xbox gaming consoles and the augmented reality platform, HoloLens. Its purchase of Activision Blizzard shows that it is committed to continuing to make significant investments in the gaming industry.

This acquisition will give Microsoft access to popular games and franchises, which could lead to new & exciting game releases. In addition, it will help Microsoft expand its cloud gaming offering, which will allow gamers to play games remotely on their PC or console.

The acquisition will also help Microsoft increase its market share in the gaming industry, and will provide it with a diverse range of revenue streams from game sales, in-game purchases and esports events. It will also benefit Microsoft’s existing business units, such as its Azure cloud computing service and its Game Pass subscription service. However, there are also some concerns that the acquisition may limit consumer choice and hurt smaller gaming developers.

Challenges

The deal also gives Microsoft access to a massive player base in mobile gaming, the fastest-growing segment of the industry. With more than 95% of gamers worldwide playing games on mobile devices, the combination of Activision Blizzard and Microsoft’s strengths will enable players to experience their favorite franchises in new ways.

But there are several challenges that could derail the deal. The most obvious is the antitrust issues raised by rivals and regulators. Sony, for example, fears that Microsoft will make Call of Duty games exclusive to its platforms, reducing choice and hurting PlayStation owners.

There are also concerns that Microsoft will use the acquisition to push its cloud and subscription-based gaming platform. But despite the popularity of games like Overwatch and Diablo, subscriptions still represent only about 10% of the overall gaming market. Moreover, it’s not clear how well the storied IP of Blizzard will sell in a shift to mobile and subscription gaming.

Conclusions

The acquisition of Activision Blizzard by Microsoft is a major development for the gaming industry. It will allow Microsoft to expand its gaming portfolio and compete more effectively against rivals like Sony and Nintendo. It will also give Microsoft access to a large number of popular franchises, which can boost revenue.

In addition, the acquisition will allow Microsoft to enter the mobile gaming market. Microsoft has already hinted at bringing popular franchises such as Call of Duty and World of Warcraft to mobile devices. It will also enable Microsoft to expand its Xbox Game Pass subscription service.

However, the acquisition is not without its challenges. For one, it could lead to job losses at Activision Blizzard. It will also be important for Microsoft to integrate the two companies’ cultures. Finally, some gamers are concerned that the acquisition will result in less diversity within the gaming industry. However, if Microsoft can overcome these challenges, the acquisition of Activision Blizzard will be a win for both its shareholders and gamers alike.