Microsoft buy Activision Blizzard worth $68.7 billion dollars or around Rp. 1,000 trillion. This is sure to make the third largest video game company get a lucrative income. The announcement followed a series of cases of sexual harassment and gender-based discrimination within the company, which led to a public strike of employees and numerous resignations.
However, it doesn't necessarily mean that something like that happens. Of course, Microsoft has its own reasons for acquiring Activision at a fantastic price. The following is a review of why Microsoft bought Activision Bloomberg:
Market Expansion
The first reason Microsoft bought Activision was. Regarding regulators, will create the No. 1 global gaming company. 3 in the world, making Microsoft even higher so that it can compete with Tencent Holdings Ltd. China, Game Developer for League of Legends, and rival game console from Sony Corp., Developer from PlayStation.
Activision can't compete in the new world of gaming on its own, Chief Executive Officer (CEO) Bobby Kotick said in an interview.
“You look at companies like Facebook and Google and Amazon and Apple, and especially companies like Tencent — they are huge and we realized that we needed partners to be able to realize the dreams and aspirations that we had,” he said. As for Microsoft, “together our ambition is to bring joy and unity to everyone on the planet.” Microsoft CEO Satya Nadella told investors
Apart from wanting to expand the market, what you want to do because of this collaboration is that people in the world who use games from Activision are entertained and enjoy it.
Mobile
The second reason for Microsoft buying Activision is wanting to make a mobike game that is quite attractive and can be played by many people around the world. Activision owns mobile game studio King, developer of Candy Crush, one of the most popular mobile games of all time.
Microsoft doesn't have mobile games that are attractive enough and are played by the public. “We all know that the No. 1 gaming device. 1 on the planet right now is a cell phone,” said Phil Spencer, Head of Xbox and currently appointed CEO of Microsoft Gaming, in an interview.
For similar motivation, see the agreement from Take-Two Interactive Software Inc. to buy mobile game maker Zynga Inc. worth $11 billion or the equivalent of IDR 157 trillion, which was announced earlier this month.
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Doing Game Sales with Applications
Nadella wants the games he has grown up with himself to grow and scale so that gamers can access. Directly, bypassing Apple Inc.'s App Store. Microsoft has colluded with Apple, and Alphabet Inc.'s Google, over fees that apps charge for app-based games. “Today, we face strong global competition from companies that generate more revenue from game distribution than we do from our game sales and subscriptions portion.” said Nadella over the phone with investors.
“We need more innovation and investment in content creation and less constraints on distribution.” Or, as Spencer put it when talking about mobile games, “The distribution on those devices is controlled by two people, two big companies.” So Microsoft wanted its own "unfettered" ability to distribute games and content, Spencer said.
Metaverse
Metaverse is currently a hit and could be a pretty good prospect. Because this metaverse is one of the reasons Microsoft bought Activision.
Gaming is one of Microsoft's two big game metaverses (the others being Office software and conferencing). Nadella and Spencer have seen the gamer community grow around metaverse titles like Minecraft and Hello similar to the metaverse concept.
This acquisition will allow the game's larger and more loyal community to create their own metaverse. “When we think about our vision of how our metaverse will be, we believe there can't be one metaverse centralized and there should be none,” said Nadella. “We need to support multiple metaverse platforms, as well as a strong content, commerce, and app ecosystem.”
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The Three C
The final reason for Microsoft buying Activision is strategy three c. Nadella's corporate strategy has converged around cloud, content and creators. Microsoft wants to get as much of Activision's past and future content as possible to its cloud gaming service, Xbox Game Pass, which has boosted software maker sales with a steady stream of subscription revenue. The deal also allows Microsoft to capitalize on player pools creating their own content and game worlds. After adding Minecraft, LinkedIn, and GitHub,
Nadella has paid for great assets that will provide him with a large community of content creators. He failed to get hold of the social video service TikTok, and talks with Pinterest Inc. and Discord Inc. also to no avail. Microsoft buying Activision is something that is sure to set off a new wave, and this time it seems to be working.
Now that's the reason Microsoft bought Activision because the number 1 computer company in the world can get a lot. For other articles related to the world of games, you can just check it out here.
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