rajkotupdates.news : microsoft gaming company to buy activision blizzard for rs 5 lakh crore

Microsoft announced The all-cash deal today, after which Microsoft’s gaming division Xbox and Activision, announced plans to work together for future games. In its note, Microsoft states it will become “the world’s third-largest gaming company by revenue” once the transaction closes.rajkotupdates.news _ microsoft gaming company to buy activision blizzard for rs 5 lakh crore

In Short

  • Microsoft has announced it will take over Activision Blizzard, a primary US-based game developer.
  • After the acquisition, Activision Blizzard will report to Phil Spencer, CEO of Microsoft Gaming.
  • All the gaming titles by Activision will soon remain offered under Xbox Game Pass and P.C. Game Pass.

Microsoft Gaming Company, rajkotupdates.news : microsoft gaming company to buy activision blizzard for rs 5 lakh crore

Microsoft is a technology company heavily involved in gaming through its subsidiary, Xbox Game Studios. Xbox Game Studios is responsible for developing and publishing video games for Microsoft’s Xbox consoles, Windows PCs, and other platforms. Some notable game franchises under Xbox Game Studios include Halo, Forza, Gears of War, Minecraft, and Age of Empires. Microsoft also operates Xbox Live, a popular online gaming service, and offers the Xbox Game Pass subscription service, which provides access to a library of games for a monthly fee.

activision blizzard for rs 5 lakh crore

Activision Blizzard is a major video game publisher and developer known for creating popular game franchises. It remained formed through the merger of Activision and Blizzard Entertainment in 2008.

Activision Blizzard is responsible for publishing and developing a wide range of well-known games across various genres. Some of their notable franchises include Call of Duty, World of Warcraft, Diablo, Overwatch, Hearthstone, and Candy Crush Saga.

The company operates through multiple studios and has a powerful console and P.C. gaming market presence. Activision Blizzard also organizes and runs esports leagues and tournaments, such as the Overwatch League and the Call of Duty League.

It’s worth noting that as my knowledge is up until September 2021, there may have been developments or changes regarding Activision Blizzard since then. It’s always best to refer to the latest news and official sources for the most up-to-date information on the company.

Microsoft gaming company to buy activision blizzard for rs 5 lakh crore

Microsoft, often called Microsoft Corporation, is a multinational technology company headquartered in Redmond, Washington. While Microsoft is primarily known for its operating systems (such as Windows) and productivity software (such as Microsoft Office), it is also a significant player in the gaming industry.

Microsoft’s gaming division is called Xbox, and it encompasses various aspects of gaming, including console hardware, software development, and online services. The Xbox brand is most well-known for its gaming consoles, including the Xbox, Xbox 360, Xbox One, and the latest generation, Xbox Series X|S.

Xbox Game Studios, a subsidiary of Microsoft, is responsible for developing and publishing a wide range of video game titles. Some notable franchises associated with Xbox Game Studios include Halo, Forza Motorsport, Gears of War, Minecraft, Age of Empires, and more.

In addition to hardware and game development, Microsoft offers Xbox Live, an online gaming service that allows players to connect, play multiplayer games, and access digital content. They also have the Xbox Game Pass subscription service, which provides access to a library of fun for a monthly fee.

Microsoft is a significant player in the gaming industry and is committed to expanding its presence and offerings to gamers worldwide.

What’s the issue with the Microsoft-Activision deal?

The deal would hand Microsoft significant power in the developing cloud-gaming business. Cloud gaming allows users to stream video games via various devices and could eventually replace consoles and gaming computers.

Controlling Activision’s content could give Microsoft a decisive advantage in attracting users to its cloud-gaming service, potentially hurting rivals such as Sony (SONY) and Nintendo (7974. Japan).

Microsoft sought to offset concerns by offering a series of 10-year licensing agreements to ensure European consumers could play all current and future Activision games on any cloud-gaming service they choose. The U.K.’s Competition and Markets Authority rejected similar proposals in late April; as we now know, E.U. regulators approved the deal on May 15.

Why did regulators disagree?rajkotupdates.news _ microsoft gaming company to buy activision blizzard for rs 5 lakh crore

[The E.U.’s stance is that by slapping conditions on the Microsoft-Activision deal now, it can set ground rules around the cloud-gaming sector and open up the market]. It said the commitments would represent an improvement, as Activision doesn’t currently license its games to cloud-based game-streaming services.

[What’s critical to note here is this suggests the E.U. favors ‘behavioral remedies’ when it comes to mergers between big technology companies—extracting commitments that the merged business won’t engage in anticompetitive behavior]. It could also hint that the E.U. hopes an accommodating merger environment will stimulate Europe’s tech industry.

“The commitments will unlock significant benefits for competition and consumers by bringing Activision’s games to new platforms, including smaller E.U. players,” the European Commission statement said.

[While the E.U. appears to have focused on the immediate effects of the merger, the U.K.’s CMA took a skeptical line over how well behavioral remedies would hold up in the longer term]. That’s a crucial difference of opinion.

What happens next? rajkotupdates.news : microsoft gaming company to buy activision blizzard for rs 5 lakh crore

In the U.S., the Federal Trade Commission (FTC) has already sued Microsoft to block the deal. [A hearing on the case is due to take place in early August, but the outcome of the U.S. lawsuit is likely to be heavily conditioned by events in the U.K].

Thomas Smale, CEO of M&A advisory firm F.E. [International, said that although the FTC operates independently and those of other countries do not directly bind its decisions, it often takes international precedents and trends into account]. “[Therefore, the U.K.’s approach to vertical mergers in the gaming industry might be a factor that informs the FTC’s perspective or discussions on similar matters,” he said].

Microsoft and Activision Blizzard remain expected to appeal the U.K. decision in a British court. [While the E.U. ruling could provide some marginal support for their case, it will be a stiff test—with the U.K.’s CMA having a solid historical record of prevailing against appeals]. Analysts at Raymond James last week put the chances of a successful deal at just 10% to 15%.