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Microsoft’s recent acquisition of Activision Blizzard not only solidifies its position as the third-largest gaming company in the world but also grants the company access to the lucrative mobile gaming market. With Activision Blizzard’s popular mobile game “Candy Crush Saga” and its impressive user base, Microsoft now becomes a major player in mobile gaming, a market projected to bring in $103 billion in revenue this year alone.
This move also presents an opportunity for Microsoft to tap into the mobile advertising space, as mobile games generate revenue through in-game sales and advertising. “Candy Crush” excels in both aspects, giving Microsoft a significant advantage in this domain.
Furthermore, Microsoft’s acquisition of Activision Blizzard strengthens its existing gaming services, such as Xbox Game Pass and Xbox Cloud Gaming. With Activision Blizzard’s extensive library of intellectual property, Microsoft can enhance its Game Pass subscription service, which already boasts over 120 million monthly active users. The addition of Activision Blizzard’s games will make Game Pass an even more appealing option for gamers, thereby driving subscriptions and revenue growth.
Cloud gaming is another area where Microsoft aims to capitalize. As a leader in cloud gaming, Microsoft has been actively experimenting with the technology, making it available on various devices. While cloud gaming is still in its early stages and accounts for a small portion of gaming revenue, Microsoft’s expertise and resources can propel its Xbox Cloud Gaming service as high-speed internet becomes more accessible worldwide.
Finally, the acquisition presents an opportunity for Microsoft to revive older Activision Blizzard properties, such as “Guitar Hero,” and potentially release new content in addition to its existing lineup of first-party games.
Overall, Microsoft’s acquisition of Activision Blizzard signifies a seismic shift in the gaming industry’s landscape. However, it will likely take some time before Microsoft fully leverages its newfound assets and benefits from this $69-billion deal.
Sources:
– International Data Corporation (IDC)
– Forrester
– Yahoo Finance
(Note: URLs for sources are not provided)