• Microsoft buying Activision Blizzard for $68.7 billion
• Microsoft investing in world-class content
• Gaming Business Accelerating with Building Blocks of Metaverse

The news of Microsoft buying Activision Blizzard for $68.7 billion has been triggering excitement. The bid made by Microsoft is the largest ever made for a game studio.  This buy has empowered Microsoft to compete with Tencent and Sony, thus providing it a firmer footing in the metaverse space.

Microsoft stated that the so-called metaverse is the reason for acquiring the game developer Activision Blizzard for $68.7 billion, further stated that the deal would provide the “building blocks for the metaverse.”

For clarity, the metaverse is where the physical and digital worlds come together.  This concept is in the nascent stage.  (Microsoft-owned Minecraft – already offers the immersive experience of Metaverse to its users.

Activision’s stock has been battered in recent months.  The company faces multiple accusations of sexual harassment and misconduct, and it is at this point in time that Microsoft has announced plans to acquire the company.

For clarity, Activision Blizzard, Inc. is an American video game holding company based in Santa Monica, California. It was founded in July 2008 through the merger of Activision, Inc. and Vivendi Games. It is traded on the NASDAQ stock exchange under the ticker symbol ATVI, and since 2015 has been a member of the S&P 500 Index.

Satya Nadella, chairman and CEO, Microsoft. “We’re investing deeply in world-class content, community and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive and accessible to all.”

Microsoft has been increasingly moving to recurring revenue model comprising software and platform subscriptions.  Activision fits in to the requirements of Microsoft.

The acquisition plan of Microsoft is a clear sign of power and potential of the global gaming business with similar multi-billion-dollar deals coming fast and furious over the last few years.

Reportedly, The global gaming market size is expected to gain momentum by reaching USD 545.98 billion by 2028 while exhibiting a CAGR of 13.20% between 2021 and 2028.

The major players in the gaming industry are Sony Corporation, Microsoft Corporation, Nintendo, Tencent Holdings Limited, Electronic Arts Inc.

Over half a million daily active gamers are spending 30- 45 minutes on gaming platforms.  There are three billion people who are actively playing games.  They are fuelled by the new generation of gamers who are immersed in the joys of interactive entertainment.  Gaming is the largest and fastest-growing kind of entertainment.

The acquisition of Activision Blizzard Inc. is expected to accelerate the growth in Microsoft’s gaming business across mobile, PC, console and cloud and will provide building blocks for the metaverse.