- Microsoft’s acquisition of Activision Blizzard is one of the most discussed deals in the gaming industry
- As such it has affected the wider gaming industry
- Sony’s share price has fallen as analysts predict that Microsoft’s Game Pass subscription model will change gaming
Shortly after Microsoft announced its intentions of acquiring Activision Blizzard, Sony’s stock fell amid concerns for the hardware-based model going out of fashion.
Microsoft’s Acquisition of Blizzard Had an Immediate Industry Effect
The acquisition of Activision Blizzard by Microsoft is a historic moment for the video game industry the effects of which have echoed across the sector. Shortly after the announcement was made, the market saw Sony stock plummet.
The acquisition of Blizzard has had an immediate positive effect on Microsoft’s shares. As of the time of this writing, the company’s stock continues to slowly rise and currently has a price of $303.33 per share. However, some other companies were affected negatively.
On January 19, the price of Sony shares went down by 13% on the Japanese stock market, Bloomberg reported. According to the news outlet, this is their lowest price in the last ten years.
Industry specialists are inclined to believe that the Blizzard acquisition will give Microsoft a significant edge over its rival Sony. Microsoft’s growth strategy has been very successful and having a company as popular as Blizzard under its wing will make it harder for Sony to keep up.
Analysts believe that Microsoft’s subscription-based model will slowly replace the old-school hardware-based model and force Sony to adapt or fall behind.
The Hardware-Based Model May Fall Out of Favor
The concerns for Sony were sparked by an announcement by Microsoft Gaming’s chief executive, Phil Spencer. Spencer said that he is looking forward to adding some of Blizzard’s titles to the Xbox Game Pass, confirming the analysts’ concerns.
“Upon close, we will offer as many Activision Blizzard games as we can within Xbox Game Pass and PC Game Pass, both new titles and games from Activision Blizzard’s incredible catalog.”
The acquisition of Blizzard has been a widely discussed topic among fans as well. Many are cautious but hopeful, believing that Microsoft will be more responsible and will mitigate the harm that Blizzard brought upon itself. Some welcome Microsoft’s Game Pass as it provides access to numerous titles and is very affordable. Others, however, are concerned by the idea of software-as-a-service replacing the old-school game model and the harm it may bring to the industry. To top it, Blizzard employees fear that their calls for a better environment will be drowned.
Still, the general consensus is that the acquisition will likely benefit Blizzard’s titles and most gamers but will create severe competition on the market, hurting some developers in the process.