Microsoft is acquiring Activision Blizzard to dominate the metaverse
By MYBRANDBOOK
Following the news that Microsoft plans to acquire Activision Blizzard for $68.7 billion. Taking part in what is the biggest tech merger & acquisition (M&A) ever reflects Microsoft’s desire to dominate the metaverse. The company is focused on acquiring both Activision’s communities and content-two essential parameters for success in the metaverse. Activision’s popular games franchises Call of Duty and Overwatch, and the communities it commands, will position Microsoft as a leader in the metaverse.
“Microsoft is formidable competition for Meta, Epic Games, Tencent, and Roblox, all of which are scrambling for dominance in this emerging theme. While the metaverse is still largely conceptual, Microsoft’s strength in underlying themes such as artificial intelligence (AI), augmented reality (AR), virtual reality (VR), and cloud computing give it a leadership position in this theme. Activision’s games will help Microsoft create metaverse experiences and provide an established global consumer base to test and market them.
“Microsoft ranks second out of 44 companies in GlobalData’s gaming thematic sector scorecard, which ranks companies based on their leadership in the 10 themes that matter most to the gaming industry-generating a leading indicator of future performance. Microsoft is second only to Tencent, while Activision Blizzard ranks 13th on the scorecard.
“Following the acquisition, Microsoft will gain a dominant position in esports, a growing theme where it has struggled to make a mark in the past. Additionally, Activision is a mobile gaming leader with plans to launch more mobile titles in the future. The takeover will strengthen Microsoft’s position in the mobile gaming market, which will be worth $272 billion by 2030.
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