Microsoft’s Acquisition Of Activision Blizzard Is Seismic, But The Crown In The Deal Might Be King
Microsoft’s enormous Activision Blizzard King deal makes Microsoft Gaming the world’s third-largest games company. According to Bloomberg, Microsoft’s $68.7 billion acquisition puts the Redmond company at no.3, with only Sony and Tencent above them.
A lot of attention has understandably been paid to the Activision Blizzard part of the deal, since their studios make the megahits of Call of Duty, Overwatch, and World of Warcraft, but the mobile arm of the publishing giant - King - plays a major role in the astronomical price tag.
Related: Xbox In Japan: The Battle To Win The Console Race In Microsoft’s Toughest Market
“Microsoft needs an effective mobile strategy for long-term growth. This acquisition brings with it an opportunity to scale up Microsoft’s mobile games content portfolio,” says Ampere Analysis’ Piers Harding-Rolls.
Sony’s success in video games has transformed the Japanese giant, but it lacks a significant mobile gaming business, which could mean it eventually falls behind its American rival. Previously the electronics company was known for Walkmans, TVs, audio-visual equipment, among others, but nowadays video games account for much of its revenue, with sensors, such as the photographic ones found in smartphones, being another major source. Sony has, in effect, become The PlayStation Company.
Tencent, meanwhile, is known for WeChat in its native China. There, the app is ubiquitous, with over a billion users. An astronomical number of social and business interactions occur daily through the messaging app, which has other features such as social media, payment, e-wallet, and much else. But considering where most of its revenue and profits come from, Tencent reigns as the biggest games company in the world.
A
Read more on thegamer.com
