Rajkotupdates.news: Microsoft gaming company to buy activision blizzard for Rs 5 lakh crore

Microsoft gaming company has planned to buy Activision Blizzard for $68.7 billion (approx. 5 lakh crores).

With this acquisition, the position of Microsoft will strengthen the gaming industry and help reshape the future of gaming.

In this article, we are going to discuss details about the acquisition and the rationale behind it. Along with this, we will also discuss the potential impact on the gaming landscape.


Background of companies involved

The global technology giant Microsoft is popular for its hardware and software products, including Xbox gaming consoles, office suite, and Windows operating system.

The division of Microsoft gaming is growing slowly with the game pass subscription service and the acquisition of game development studios. And the answer to this Microsoft bought Blizzard and Activision is affirmative.

The acquired company is one of the leading gaming companies responsible for popular franchises like Diablo, Overwatch, World of Warcraft, Diablo, and Call of Duty.

The gaming company is at the forefront of developing games and has been continuously publishing for decades, with a strong focus on engaging and high–quality content. So, it is necessary to know why Microsoft buys Activision.

Reason behind acquisition

The acquisition is made keeping various objectives in mind.

  1. Diversifying revenue streams

With the help of acquisition, Microsoft’s source of revenue will diversify, and it will get access to the profitable business segments of Activision Blizzard, including esports, in–game purchases, and game sales.

  1. Leveraging Activision Blizzard’s expertise

The renowned company Microsoft can jump into extensive experience of Activision Blizzard and can access information about game development and publishing. It can also benefit from technical expertise, establish relationships within the industry and access creative talents.

  1. Strengthening Microsoft’s Position in the gaming market

With the help of acquisition, Microsoft will bolster its industry image and increase competitiveness against its rivals like Nintendo and Sony.

  1. Expansion of Microsoft’s gaming portfolio

With the help of acquisition, the vast gaming library of games will move under Microsoft’s umbrella. So, Microsoft can provide more gaming content to its subscribers.

Impact of acquisition

The acquisition will have various impacts on the gaming industry. Below are some of them.

  1. Changes in game development and publishing

Now that Microsoft has absorbed the franchises and studios of Activision Blizzard, there can be changes in the development and publishing of game processes. It can impact release schedules, support for various gaming platforms, and game quality.

  1. Great emphasis on game subscription and pass services

The acquisition expects to reinforce the importance of subscription services like the game pass of Microsoft, as they offer a steady revenue stream and enable companies to invest in new services and content.

  1. Increased competition among gaming platforms

Because of Microsoft’s bolstered gaming line-up, the competition in the gaming market will intensify as the companies vie for market share and consumer attention.

  1. Consolidation of the gaming market

The acquisition further consolidates within the gaming industry because large companies like Microsoft will continue to expand their portfolios and increase their market share.

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What are the benefits of buying Activision Blizzard?

The acquisition has bought many benefits to Microsoft, which helps the company to solidify its position in the gaming industry. Various key benefits are

  1. Strengthening the ecosystem of Microsoft

The acquisition complements the present ecosystem of Microsoft, which also includes the Xbox console, Game Pass subscription, and multiple game development studios. With this, Microsoft can deliver a seamless gaming experience and can foster long–term customer loyalty.

  1. Expansion in Esports

The acquired company has a strong presence in the fast-growing esports industry, which also includes popular titles like Call of Duty and Overwatch, having dedicated esports leagues. Now Microsoft can easily leverage these footholds to increase its presence in the market of esports and can also explore new revenue opportunities.

  1. Diversified revenue streams

Activision Blizzard used to generate revenue via various channels, which include sports events, in–game purchases, and game sales. With the acquisition, Microsoft has got control of the diversified revenue stream.


Microsoft’s acquisition of Activision Blizzard provides a range of benefits like a diversified revenue stream, increased market share, expansion of gaming portfolio, etc. This well-planned strategic move holds the potential to reshape the gaming industry along with solidifying the position of Microsoft in the gaming industry.

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