What does Microsoft hope to achieve by acquiring Activision?

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Microsoft Aims to Enhance Gaming Dominance and Metaverse Presence Through Activision Acquisition

Microsoft anticipates that acquiring Activision Blizzard will significantly elevate its position within the global gaming industry, making it the third-largest gaming company by revenue, trailing only Tencent and Sony. This strategic move is expected to bolster Microsoft's existing gaming franchises, facilitate the launch of new ones, and leverage Activision's extensive library of games accumulated over 40 years. Furthermore, Microsoft views gaming as a pivotal element in the development of metaverse platforms, with the integration of Activision's intellectual property playing a key role in this future vision.
Strengthening Gaming Portfolio and Franchise Development

The acquisition is designed to empower Microsoft with Activision's established franchises and a substantial game catalogue. Activision chief executive Bobby Kotick stated that with Microsoft's resources, the company will be better positioned to expand current game series, introduce novel franchises, and unlock the potential of its decades-long collection of titles. This includes plans to invigorate popular games like Call of Duty, with a new generation of the franchise reportedly in development to address declining player interest that contributed to a sales dip in the last quarter of the previous year.
Expanding Market Position and Industry Influence

Upon completion of the US$69 billion deal, Microsoft is projected to become the third-largest gaming company globally based on revenue. This significant market share expansion underscores Microsoft's ambition to be a leading force in the rapidly growing entertainment sector, which is already estimated to be larger than the movie industry. The integration of Activision's operations and intellectual property is expected to solidify Microsoft's competitive standing against major players like Tencent and Sony.
Driving Metaverse Development Through Gaming

Microsoft's CEO, Satya Nadella, has emphasized the dynamic and exciting nature of gaming across all platforms and its critical role in the future development of metaverse platforms. The acquisition of Activision, known for popular titles such as Candy Crush, is seen as a strategic step towards realizing this vision. By integrating Activision's extensive content and player base, Microsoft aims to harness gaming's potential to build and shape immersive metaverse experiences.

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What does Microsoft hope to achieve by acquiring Activision?

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