Microsoft's Proposed $69 Billion Activison Acquisition Could Change the Gaming Market
Microsoft has made a big splash in the gaming industry this week with its announcement of a proposed $69 billion acquisition of Activision Blizzard. The deal, which is still subject to approval from European and UK regulators, could have a major impact on the gaming market and how consumers play games.
Analysis
Microsoft President Brad Smith has spent this week in Europe trying to convince EU and UK regulators - and a gaming rival - to approve the acquisition. The deal would give Microsoft a major foothold in the gaming market, and would put the company in direct competition with Sony, Nintendo and other gaming giants.
In the wake of the announcement, Microsoft's executives have been doing their utmost to convince regulators that the deal will be beneficial for the gaming industry. "It's not some linchpin to the long term," Xbox boss Phil Spencer said in a recent UK interview. "This is not a 'we have to do this or everything else falls apart' situation."
Meanwhile, Microsoft president Brad Smith appeared in Brussels to meet with regulators and make Microsoft's case to acquire Activision. He said the deal would bring more competition to the gaming industry and give consumers more choice. "The acquisition of Activision will bring new experiences and new ways to play for our customers," Smith said.
Reaction
Ever since Microsoft announced its intention to acquire Activision Blizzard in an unprecedented $69 billion deal, it's felt like the news has been met with a mixture of excitement and trepidation. The deal could have a massive impact on the gaming market, but it's still unclear what the exact implications will be.
Microsoft and Nvidia have already signed a decade-long deal to bring Xbox PC games to Nvidia's GeForce Now game-streaming service. This could give Microsoft a major advantage over its rivals, as the deal will allow its games to be played on a variety of devices.
Microsoft is also holding a press briefing in Brussels to address the future of its $68.7bn Activision Blizzard buyout attempt. It's likely that Microsoft will use the press conference to discuss the potential for the acquisition, and to explain how it plans to benefit the gaming industry.
Risks
There's a fairly high chance that the Microsoft acquisition of Activision-Blizzard could get blocked. Where would that leave Xbox? It's unclear, but it's likely that the gaming industry would become more competitive. Microsoft, Sony, and others are meeting in Brussels today to discuss the proposed acquisition of Activision by Microsoft. It's a big meeting, and it could be the turning point for the gaming industry.
