September, Friday 20, 2024

Understanding the Impact of Microsoft's Acquisition of Activision on the Gaming Community


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Microsoft has officially acquired Activision Blizzard in a deal worth $69 billion. This has left fans wondering how this will impact their gaming experience. Call of Duty, one of the best-selling game franchises, may not become an Xbox exclusive until 2038. Ubisoft has secured "cloud gaming" rights for all past and future Activision Blizzard games for 15 years, as part of Microsoft's agreement with UK regulators. Cloud gaming refers to streaming games over the internet, similar to Netflix for games. Currently, major subscription services in gaming include Ubisoft+, Sony's PlayStation Plus, and Xbox Game Pass. According to Activision Blizzard, they expect their titles to be added to Game Pass starting next year, potentially allowing new Call of Duty games to be playable on Xbox from day one. This deal marks a significant shift as Sony previously benefited from exclusives with Call of Duty, including early access and bonus features. Microsoft has a track record of making blockbuster games available on Game Pass on their release day. Gamers will have to decide whether to purchase the game or access it through a subscription fee. It is worth noting that the UK regulator ensured that Activision Blizzard games cannot be exclusively streamed on Xbox for 15 years due to concerns about Microsoft's dominance in the cloud industry. Microsoft's previous exclusive release of Starfield on PC and Xbox, and its availability on Game Pass, may have influenced this decision. Although games can still appear on PlayStation, it appears that Microsoft will emerge as the winner. While Ubisoft has secured streaming rights, game companies increasingly generate more revenue from in-game purchases or microtransactions. In 2022, Activision Blizzard made over three times more revenue from microtransactions, downloadable content, and royalties than game sales. Sony receives around 30% of in-game purchases, meaning that future purchases in Call of Duty on PlayStation will benefit a rival company. Opinions on the deal vary among fans. Some believe it will expand the gaming market and fund better games, while others fear a permanent switch to Microsoft. Requests have been made for Microsoft to maintain cross-platform compatibility for games like Crash Bandicoot and Spyro the Dragon, which were once PlayStation exclusives. From a UK perspective, this acquisition means more UK studios falling under Microsoft's control. The UK Interactive Entertainment (Ukie) highlights that international investment plays a crucial role in the UK gaming industry, with non-UK companies accounting for 89% of total investments between January 2017 and June 2022. This significant investment will have a notable impact on game development. Microsoft has a history of strategic acquisitions to strengthen its position in the gaming industry. They previously purchased Rare, the developer of GoldenEye 007, and Mojang, the creator of Minecraft, the best-selling game of all time. With over 20 gaming studios under its belt, Microsoft is looking to replicate its dominance in computing in the gaming sector. This acquisition brings a range of popular games under Microsoft's ownership, including Candy Crush Saga, Crash Bandicoot, and Spyro the Dragon. With Microsoft's expanding gaming empire, their influence on the gaming industry is set to grow even further.