With a $70 billion deal with Activision, Microsoft raises the bar in the metaverse

With a $70 billion deal with Activision, Microsoft raises the bar in the metaverse

Microsoft’s latest deal with Activision could raise eyebrows over anti-competitive fears. How that will play out is yet to unfold. So far, no one has attempted to build a monopoly in gaming by throwing money to buy out rivals. Activision too needs a helping hand at this moment. It has fired or edged out over three dozen employees and disciplined another 40 over allegations of sexual harassment and misconduct. However, the troubled CEO Boby Kotick remains at the helm, for now. The deal also hints at the direction in which Microsoft could be heading in the future. CEO Satya Nadella told employees in written communication, “Gaming has been key to Microsoft since our earliest days as a company.

Microsoft’s recent partnership with Activision may raise antitrust concerns. It remains to be seen how this will play out. So yet, no one has tried to buy out competitors in order to create a gaming monopoly. It’s not every day that a $70 billion deal is signed only to acquire a gaming company. However, Microsoft, which has a market capitalization of over $2 trillion, discovers gold dust in its largest deal ever, as it devours the producer of iconic video games like Call of Duty and Candy Crush. Activision Blizzard has a market capitalization of $65 billion. Microsoft is at the top of the list, followed by China’s Tencent, which is worth another $550 billion.

Today, it’s the largest and fastest-growing form of entertainment, and as the digital and physical worlds come together, it will play a critical role in the development of metaverse platforms.” Not too long ago, Facebook CEO Mark Zuckerberg had announced plans for an extensive, ambitious presence in the metaverse. Gaming and entertainment will be a large part of it, he said. Microsoft too is now upping its game and looking to challenge Meta in that domain. CEO of Microsoft Gaming, Phil Spencer hinted at more synergies and a wider playing field. He said, “Coming together, we can accelerate our mission to extend the joy and community of gaming to everyone. We have the capability and opportunity to build simply the best, most engaging, most fun entertainment ecosystem anywhere.”

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