We all know that Microsoft is one of the largest and top-rated gaming companies around the globe. This company has recently announced the acquisition of Activision Blizzard, and the estimation of this agreement is around five lakh crore, which is also a massive acquisition in the history of Microsoft. In this article, we will cover all details related to rajkotupdates.news : Microsoft gaming company to buy activision blizzard for Rs 5 lakh crore.
There are so many reasons which should be highlighted. What is the reason to spend this large amount of cash to acquire a gaming business? Its advantages, details of this acquisition, potential impact, the rationale behind it and many more things.
After reading this article, we hope that you will come to know the answer to all of your questions and that most of your doubts will be clarified.
Overview
Microsoft is one of the largest and most prominent companies in the world, which is widely known for its hardware and software products like an Office suite, windows operating system, Xbox gaming consoles and many others. The gaming division of Microsoft company is overgrowing with the acquisition of game development studios and services like game pass subscriptions.Activision Blizzard company which is widely known around the world and responsible for many franchises such as World of Warcraft, Diablo, Call of Duty and so on. For decades this company has been at the top of publishing and development, offering high-quality content to its users.
As Microsoft gaming company bought Activision Blizzard for Rs 5 lakh crore, which is around $68.7 billion, there are many reasons behind this which will strengthen their position in the industry of gaming and help in reshaping the future of gaming.
The Reason behind the Acquisition
This acquisition will help a lot in strengthening the position of the Microsoft company in the gaming market. After acquiring a prominent company, it can increase competitiveness and can have success at its peak. This will diversify the revenue source of Microsoft through Activision Blizzard access in profitable business segments like in-game purchases, game sales, esports and much more.Under Microsoft company, this acquisition will bring a wide variety of Activision blizzards, games and franchises so that they will be able to provide much more content to their game pass subscribers. They can have the benefit of technical expertise, established relationships and creative talent through Activision blizzards and amazing experience in the publishing and development of gaming sectors.
Benefits of Buying the Activision Blizzard
- This acquisition will help Microsoft company to acquire significant shares in the gaming market, strengthen its competitive position and to increase its revenue.
- As we all know, Activision Bizzard is well known in the past for its exceptionally talented workforce and for developing excellently successful games. Thus Microsoft can have their expertise and skills for its gaming projects.
- This will help them in saving lots of costs in the development of different games. By reducing costs, they can quickly increase their efficiency.
- This will strengthen the gaming system of Microsoft.
- They can expand their gaming portfolio.
- By subscription services, subscribers can have the benefit of a comprehensive library of games for themselves which will make the services very elegant and can lead to an increase in their subscriber base.
Impact of the Acquisition
Consolidation of the gaming market is one of the significant impacts of this acquisition, as big companies like Microsoft and others will continue to expand themselves and will increase their share in the market. There will be a great value in the game pass and subscription services due to this, and thus they will enable companies to invest in the latest services and content.There will be excellent and tough competition among different gaming platforms as companies will compete to gain the attention of the consumers and for market share. We can see changes in the publication process and gaming development, gaming quality and various other services as a result of this.
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Challenges of Buying the Activision Blizzard
- After the acquisition, Microsoft company will have a vast library of games, franchises and intellectual property, and they will have to manage and control them, which could be a complex task needing more time and proper planning and coordination among everyone.
- They will face many controversies and have to create a positive working environment for everyone who works there.
- They have to maintain the quality to offer to their customers or users and maintain innovation.
- For smooth working of the company after merging, they have to work on management style, company values and work environment for smooth and conflictless integration.
- They have to allocate resources very effectively and efficiently so that they will be able to attend success in the gaming market.
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