Microsoft CEO Nadella ‘downplayed’ acquisition of Activision Blizzard

2022-07-16 0 By

Microsoft CEO Satya Nadella weighed in on the company’s recently announced acquisition of Activision Blizzard, downplaying its significance.In an interview with the Financial Times, Mr Nadella argued that Microsoft was still some way from becoming a gaming monopoly and that the acquisition would simply make Xbox “a big player in a highly fragmented place”.”Even after this acquisition, we will be number three, with low teens [market] share,” Nadella explained.He confirmed that SONY and Tencent will remain the two biggest players in the gaming industry even after the $68.7 billion acquisition of Activision Blizzard.Nadella continued: “Why are these content companies trying to get bigger?That’s because the real constraint is distribution.”Nadella pointed out that unlike Windows, which has non-Microsoft-owned Steam as its most popular store, distribution of console games is essentially closed, available only in the manufacturer’s stores.”In a way, that’s why we’re very hopeful that by becoming more powerful, even if the share is low, we can create more distribution for many smaller players……Through channels like xCloud, “Nadella continued.While cloud gaming for Xbox is still in its infancy, Microsoft is planning to work with smart TV makers to embed the service into the TV itself, making controllers and subscriptions the only barriers to entry.It’s understood that while Satya Nadella played down the impact of such a major acquisition in an interview with the Financial Times, it’s hard to underestimate how much Microsoft would gain from an acquisition, with the massive Call of Duty franchise likely to tilt toward an Xbox exclusive in the future.On top of that, Microsoft now owns a slew of classic franchises like Spyro the Dragon, Crash Bandicoot, Tony Hawk and Blur (fantasy racing games),Phil Spencer, chief executive of Microsoft Games, has expressed interest in reviving the games.Last night and this morning: Microsoft to buy Activision Blizzard, Wamar Motor sued ByteDance for cutting its investment arm Microsoft’s Xbox is buying Blizzard, making It the world’s third-largest gaming company.Net users sigh: $400 billion cash transaction Microsoft’s ability to generate cash SONY shares fell sharply