Microsoft's deal to acquire Activision Blizzard has been approved in the UK, effectively finalizing the acquisition. The acquisition price is approximately 92 trillion won, making it the most expensive corporate acquisition since Twitter (which was around 65 trillion won). Of course, Blizzard has assets and sales, so it feels like they're buying at a loss, but it's still a big deal.
In fact, Microsoft has been targeting the gaming market. It is already deeply involved in the gaming industry through 'Xbox' and 'Windows'. However, with the recent growth of cloud gaming and mobile gaming markets, it needed a strategy to be competitive on more diverse platforms. To be honest, there was nothing to do with Xbox games. Activision Blizzard had various IPs such as 'Call of Duty' and 'World of Warcraft', so it was an ideal partner for Microsoft. (Diablo on Xbox? All sleep clinics should close.)
Expected changes within the industry
Microsoft has already entered the cloud gaming market through its 'Azure' cloud service. With the addition of Activision Blizzard's IP, the diversity and quality of cloud gaming services will be further improved. Currently, gaming clouds are heavily dependent on Amazon or GCP, and Azure can be used as a good portfolio for game server cloud computing or infrastructure construction.
In-game purchases and advertising
Activision Blizzard has a history of success in selling in-game items and advertising. If Microsoft can leverage this experience, it will further diversify its in-game revenue model. In addition, there is a high possibility of cross-platform convergence, including Xbox, Windows, and Activision Blizzard's mobile games. This will improve the user experience and open up new markets.
It's a shame that Blizzard, which created such stellar IPs and masterpieces as Starcraft and Overwatch, has been struggling lately, but as a fan, I hope that they will create even better works through this opportunity to create good synergy.
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