Having grown up on Gaming and evolved from it sometime around 2014. Microsoft’s recent string of acquisitions has come very close to home, so I thought I’d write about it.
The main reason for disappointment with the industry has not been one of the commonly cited reasons that games are a waste of time, a form of escape from reality, or low suspended dopamine. All of this is in hundreds of other things as well, what it has actually been like, is that games have gone over the years from something that was created as a labor of love, to microcredit, making cash, and playing it a safe industry.
Just like movies, TV shows, and other forms of entertainment. Gaming has become an institutional sport focused on the lowest common denominator and has been improved upon for that. The final nail in the coffin was the advent of mobile gaming, which set the standard so low, there was no turning back. (The end of dementia.)
Since then, games have done as well as the industry. It is larger than all forms of leisure industries combined. It can invite all humans as a user base, so the growth space is still very large in size.
Some facts behind the deal:
The US$200 billion gaming industry is the largest and fastest growing form of entertainment.
In 2021 alone, the total number of video game releases increased by 64% compared to 2020, and 51% of gamers in the US reported spending more than 7 hours per week playing via console, computer and mobile.
~3 billion people globally play video games today on one of the various platforms, which is expected to grow to 4.5 billion by 2030.
Microsoft will acquire Activision Blizzard for $95.00 per share, in an all-cash transaction of $68.7 billion, including Activision Blizzard’s net cash.
When the deal closes, Microsoft will become the world’s third-largest gaming company by revenue, after Tencent and Sony.
Previously, Microsoft acquired ZeniMax Media for $7.5 billion in cash, which ended up with Elder Scrolls, Fallout and other big revenue-earning IPs, and of course Minecraft in the massive 2014 deal of $2.5 billion, which has paid out multiple times since then. .
Here is a list of every game studio that Microsoft now owns directly or indirectly: Every game and studio that Microsoft now owns | computer games
Microsoft’s deal with Activision may raise eyebrows about anti-competitive concerns. How this will be implemented is not yet known. So far, no one has tried to build a monopoly in games by throwing money to buy out competitors, so this is new even for the organizers.
Preparing for metaverse?
Well, why say anything about now when “unchanging games”, whatever that means, are already such cash generated. But yes, if it comes down to that, Microsoft will find themselves with something of a first-mover advantage. Personally, I don’t think the technology is ready or accessible for insights beyond the opposite. This idea has been carried to death in science fiction since the beginning of the genre, yet all we have to show in 2022, is don a huge chest and do whatever you can do on screen with extra strides. But yeah, come on 2040 or whatever we can finally get at the end of the day. The joys of forgetting that life is hard and demanding while talking to strangers about who has more memcoin. Works.