Why did Microsoft buy Activision Blizzard? There are five reasons behind it

2022-01-19

On January 19, according to foreign media reports, software giant Microsoft announced that it would spend $68.7 billion to acquire Activision Blizzard in full cash, integrating the two forces in the field of video games. This is the largest acquisition ever made by Microsoft, and its value is almost three times that of LinkedIn, a professional social networking website acquired in 2016. Here are five key reasons for Microsoft's acquisition decision. 1. Scale effect If approved by the regulatory authorities, the deal will help create the world's third-largest game company and make Microsoft a game giant second only to Tencent and game console rival Sony. Bobby Kotick, CEO of Activision Blizzard, admitted in an interview that the company could not compete alone in the new game world. "You can look at companies like Facebook, Google, Amazon and apple, especially Tencent. They are very large. We realize that we need a partner to realize our dreams and aspirations," cotick explained Satya NADELLA, chief executive of Microsoft, told investors on Tuesday that for Microsoft, "our common ambition is to bring the joy of the game to everyone on earth". 2. Mobile terminal This is the fastest growing part of the game. Activision Blizzard owns mobile game studio king, which developed candy crush, one of the most popular mobile games in history. But Microsoft has little influence in the field of mobile games. "We all know that the most popular game device in the world today is the mobile phone," Phil Spencer, Xbox director who was appointed chief executive of Microsoft gaming on Tuesday, said in an interview Microsoft may also have similar motives to take two interactive software, an American game developer, which announced earlier this month that it had purchased Zynga, a mobile game developer, for $11 billion. 3. Bypass the "Apple tax" NADELLA hopes his game empire is large enough that players can bypass Apple's app store and enter the Empire directly. Microsoft has always had a dispute with apple and Google over the in app purchase commission charged by the app store for game apps. NADELLA said on a conference call with investors: "today, we are facing fierce competition from many companies, which earn more revenue from game distribution than our share of game sales and subscriptions. We need to increase innovation and investment in content creation and reduce restrictions on distribution." Spencer also mentioned when talking about mobile games: "at present, the distribution on mobile devices is controlled by two people and two large companies (apple and Google), and Microsoft wants its ability to distribute games and content 'unrestricted'." 4. Yuan universe Games are one of the two magic weapons for Microsoft to enter the "meta universe". The other is office and conference software. NADELLA and Spencer have regarded the gamer community growing around games such as minecraft and halo as a concept similar to the meta universe. After the acquisition of Activision Blizzard, Microsoft will be able to provide more, larger and more focused game communities to create its own meta universe. "When we think about what our meta universe might look like, we believe that there will not and should not be a single centralized meta universe. We need to support many meta universe platforms and powerful content, business and application ecosystems," NADELLA said 5. "Three C" strategy NADELLA's corporate strategy has always focused on the integration of the so-called "Three Cs", including cloud computing services (cloud), content (content) and creators (creator). Microsoft hopes to put as much of Activision Blizzard's past and future content as possible on its cloud game service Xbox game pass, which has been supporting the sales of the software manufacturer through stable subscription revenue. In addition, the deal also allows Microsoft to encourage more players to create their own game content and virtual world. After joining my world, LinkedIn and GitHub, NADELLA has been acquiring a large number of assets, which will enable him to obtain a larger creator community. Although NADELLA failed to lead Microsoft's acquisition of the U.S. business of tiktok, a short video service, and the negotiations with pinterest and discorde were fruitless, he seems to have succeeded in his latest attempt to acquire Activision Blizzard. (Xinhua News Agency)

Edit:Li Ling    Responsible editor:Chen Jie

Source:Net Ease News

Special statement: if the pictures and texts reproduced or quoted on this site infringe your legitimate rights and interests, please contact this site, and this site will correct and delete them in time. For copyright issues and website cooperation, please contact through outlook new era email:lwxsd@liaowanghn.com

Return to list

Recommended Reading Change it

Links

Submission mailbox:lwxsd@liaowanghn.com Tel:020-817896455

粤ICP备19140089号 Copyright © 2019 by www.lwxsd.com.all rights reserved

>