Reasons Why Microsoft Buys Activision Blizzard

Eliza | 23 - 01 - 2022
Buy Activision blizzard

Gaming is one of the world’s largest and favorite forms of entertainment. The gaming industry is said to be bigger than Hollywood. So to sustain in the growing gaming market, many companies introduce various software and concepts. Recently, Microsoft revealed that it plans to buy Activision Blizzard for a whopping $70 billion, the largest deal ever in the gaming industry. If you’re wondering why Microsoft is spending too much to buy Activision Blizzard, you’re at the right place. Here are the top 5 Activision blizzard benefits to Microsoft. 

Reason to Buy Activision Blizzard

  1. Size– If the transaction gets approval, Microsoft will eventually become the world’s third gaming company by revenue, behind Tencent and Sony. In an interview, Bobby Kotick, chief executive officer of Activision Blizzard said, ‘Activision couldn’t be in the world of gaming on its own so they needed a partner.” 
  2. Mobile– Activision is the maker of many popular games, like Candy Crush. Phil Spencer, Xbox CEO confirmed that gamers can expect Activision Titles on popular subscriptions. Xbox has nearly 25 million subscribers. With this deal, Microsoft will add various Activision Blizzard games like Call of Duty, Overwatch, Diablo, Starcraft, etc. 
  3. By star app store fees– Nadella, CEO of Microsoft, wants to expand his gaming empire. He said they face big global competition from companies that make more revenue from game distribution. He needs more innovation and investment in content creation and distribution. 
  4. Metaverse– Even before buying the billion-dollar deal, Microsoft positioned it as the pioneer of Metaverse. It is a combination of multiple elements of technology that is said to be the next evolution of the internet. Popular games like Minecraft and Halo are similar to the metaverse concept. Metaverse offers the game community to create their metaverses. 
  5. The three C’s- To combine cloud, content, and creators
  • To get much of Activision’s past and future content onto its cloud gaming service. 
  • To give another big community of creators. 
  • Creates a virtual environment for both work and fun.

Apart from these, there are various uses of Activision Blizzard. 

 

Who Is Buying Activision Blizzard?
  • A. Microsoft
  • B. Tesla
  • C. Facebook
  • D. IBM
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