By Manan Sawansukha
The deal, which is worth $68.7 billion, is the largest acquisition in Microsoft history. It is also the biggest deal in the gaming industry to date, surpassing the $52 billion acquisition of Zynga by Take-Two Interactive in 2022.
How might Procurement Affect Microsoft?
The tech giant’s acquisition of Activision Blizzard is a significant move. Call of Duty, World of Warcraft, and Candy Crush Saga are just a few of the most well-known video game franchises that will be under Microsoft’s control as a result of the transaction.
Microsoft will also become the third-largest gaming company in the world thanks to the acquisition, after Tencent and Sony. Microsoft will gain a significant foothold in the global gaming market as a result, likely increasing industry competition.
What Does India Get Out of the Acquisition?
The Indian gaming market is likely to benefit from Activision Blizzard’s acquisition. Microsoft has areas of strength in India and obtaining will give the organization admittance to a huge and developing business sector.
In addition, increased investment in the Indian gaming industry is likely to result from the acquisition. The acquisition of Activision Blizzard is likely to accelerate Microsoft’s gaming investment strategy.
Indian game publishers and developers stand to benefit from this investment, which is likely to result in job opportunities. Additionally, it is likely to result in the creation of new Indian-specific technologies and games.
What Effects Will This Have on the Gaming Sector?
The procurement of Activision Snowstorm is a significant occasion in the gaming business. As other businesses seek to compete with Microsoft, the deal is likely to increase industry consolidation.
Additionally, the acquisition is likely to alter game development and distribution practices. The acquisition of Activision Blizzard by Microsoft is likely to accelerate the company’s innovation streak.
One of the main changes is probably going to be the move towards cloud gaming. Microsoft has been a forerunner in cloud gaming, and the securing of Activision Snowstorm will give the organization admittance to a huge library of games that can be gushed to gadgets.
Because people will be able to play games without having to purchase costly hardware, this is likely to increase the popularity of cloud gaming in India.
What next steps are there?
The acquisition of Activision Blizzard still needs to be approved by regulators. However, it is anticipated that the transaction will close in the second half of 2023 if it is approved.
When the arrangement is shut, Microsoft will start coordinating Activision Snowstorm into its gaming business. Although this procedure is likely to take several years, it is anticipated to produce a gaming company that is stronger and more competitive.
Ridhi Jain