Microsoft made a big move in the gaming industry which could possibly help it lead its way into the Metaverse.
Trillion-dollar tech company Microsoft Corporation (NASDAQ: MSFT) is among the latest to join the Metaverse bandwagon. On Tuesday, January 18, Microsoft announced the acquisition of Activision Blizzard Inc (NASDAQ: ATVI) in a staggering $69 billion deal. ATVI stock has reacted with a jump.
This move unites two of the biggest players in the video gaming industry. Activision Blizzard is the name behind some of the iconic gaming franchises such as Candy Crush, Call of Duty, Tony Hawk’s Pro-Skater, Overwatch, and World of Warcraft.
Following this deal, all the games will be available to Microsoft Xbox’s Game Pass service. Meaning a staggering 25 million subscribers are also set to get access to these gaming titles. Also, the deal between the two giants will close in fiscal 2023. Post that Microsoft will become the third-largest gaming company by revenue after Playstation developer Sony and Riot Games owner Tencent. Speaking of this development, Satya Nadella, chairman and CEO, Microsoft said:
“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms. 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.”
Activision Blizzard Acquisition by Microsoft and ATVI Stock
Microsoft and Activision Blizzard will work together to expand their share in the mobile gaming industry. The two giants will empower gamers to enjoy some of the most-immersive franchises like “Warcraft” and “Halo”.
With titles like “Candy Crush”, the Activision Blizzard mobile business represents a significant presence for Microsoft in this fast-growing market segment. Speaking of the development, Bobby Kotick, CEO, Activision Blizzard said:
“For more than 30 years our incredibly talented teams have created some of the most successful games. The combination of Activision Blizzard’s world-class talent and extraordinary franchises with Microsoft’s technology, distribution, access to talent, ambitious vision and shared commitment to gaming and inclusion will help ensure our continued success in an increasingly competitive industry.”
Until the deal closes, Activision Blizzard CEO Bobby Kotick will remain at the helm. Later, Microsoft Gaming CEO Phil Spencer shall be taking over the reins. Spencer welcomed the deal that the company will focus on making cloud gaming accessible to as many devices as possible. Spencer said:
“The fantastic franchises across Activision Blizzard will also accelerate our plans for Cloud Gaming, allowing more people in more places around the world to participate in the Xbox community using phones, tablets, laptops and other devices you already own”.
On Tuesday, the MSFT stock was trading down 2.43% amid the broader sell-off on Wall Street. ATVI stock is 25% up after the news.