, posted 3 days ago / 1,063 ViewsMicrosoft made a huge splash this week with the announcement it is acquiring Activision Blizzard in a deal worth $68.7 billion.
MIDiA Research senior analyst and product manager Karol Severin in an interview with Wccftech was asked what he expects Microsoft to do with Activision Blizzard games and whether they may or may not become Xbox exclusives in the future.
“Given Xbox’s cross-platform and gamer-friendly narrative, the impact is less likely to be about ‘draconian exclusivities’ and more about ‘enhanced experiences’ on Microsoft-owned assets,” said Severin.
“The big hits, in particular, produce a significant (and often majority) revenue from the Sony side. It wouldn’t be financially sound to turn that revenue off, particularly because given Microsoft’s mega-portfolio (if the acquisition closes), it doesn’t need to.
“Engaging in hard exclusivity could risk alienating users on the other side, which still remain very valuable. Instead of exclusivity on whole titles, Microsoft can push more softly, e.g. through windowing access (e.g. first month of new CoD only on Xbox, not Sony), discounts, exclusive in-game content, experiences, etc.”
Severin added that a response from Sony would be a good idea as it will slow down the effects of the acquisition.
“A big response would be great for Sony – very important in slowing down the effects of Microsoft’s acquisition (IF it goes through, which Sony will be monitoring closely, I’d imagine),” he added.
“If it does go through, the sheer difference in company size will make it very difficult for Sony ($124 billion market cap) to come up with an acquisition answer comparable to what Microsoft ($2.3 trillion market cap) just announced.
“A similar dynamic applies to Nintendo at $54bn market cap. Having said that, more acquisitions are likely. M&A reportedly reached $85billion in 2021, three times that of 2020. 2022 almost beat that mark already (we’re at $81.4bn considering Zynga’s deal with Take-Two) and it’s not even the end of January!”
A life-long and avid gamer, William D’Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let’s Plays and tutorials. You can contact the author at [email protected] or on Twitter @TrunksWD.