source: Bleeding Cool
Microsoft’s recent acquisition of Activision Blizzard for a whopping $68.7 billion has sent shockwaves throughout the gaming industry. The merger will give Microsoft control over some of the most popular game franchises in the world, including Call of Duty, World of Warcraft, and Candy Crush. While the deal is yet to be approved by regulatory bodies, it has already raised concerns about Microsoft’s dominance in the gaming industry and the potential impact on cloud gaming.
Cloud Gaming and the Merger
Cloud gaming has emerged as one of the most promising and rapidly growing segments of the gaming industry. With the advent of high-speed internet, cloud gaming allows users to play games on demand without the need for expensive hardware. Microsoft has already made significant investments in cloud gaming through its Xbox Cloud Gaming service, which allows users to stream games to their devices.
The acquisition of Activision Blizzard could further enhance Microsoft’s cloud gaming capabilities. The deal would give Microsoft access to Activision Blizzard’s extensive library of games, which could be integrated into Xbox Cloud Gaming. This would give Microsoft a significant advantage over its competitors in the cloud gaming market, such as Google Stadia and Amazon Luna.
Potential Loss of Innovation
While the merger could potentially benefit Microsoft and its cloud gaming services, it may also have a negative impact on innovation in the industry. With Microsoft controlling a significant portion of the gaming market, smaller developers may find it increasingly difficult to compete. This could lead to a concentration of power in the hands of a few dominant players, stifling competition and potentially leading to less innovation in the industry.
The Microsoft-Activision Blizzard merger will likely face significant regulatory scrutiny before it is approved. The UK’s Competition and Markets Authority (CMA) has already announced that it will investigate the deal, citing concerns about Microsoft’s dominance in the gaming industry. The CMA has the power to block the merger if it determines that it is not in the best interest of consumers.
Also read: Microsoft’s Activision Blizzard deal blocked by UK regulators
The Microsoft-Activision Blizzard merger is a significant development in the gaming industry, with potential implications for cloud gaming and innovation. While the deal could enhance Microsoft’s cloud gaming capabilities, it may also lead to less competition and less innovation in the industry. The merger will face regulatory scrutiny, and it remains to be seen whether it will be approved and, if so, what impact it will have on the gaming industry as a whole.