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How Will Microsoft's Purchase of Activision Blizzard For Nearly $70 Billion Affect The Future of Gaming?

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Buckle your seatbelts everybody, over the next few years we are gonna be in for a wild ride in the gaming industry!

By purchasing Activision Blizzard Xbox gets to add a ton of new IP to gamepass and bolsters their first party studios to 30+. I think that's incredible.

Xbox should now be able to easily reach their goal of one new quality game a quarter. This is extremely significant. 

At this point Xbox could start hosting its own gaming awards ceremony. And definitely its own Xbox branded gaming convention as soon as the pandemic restrictions ease up. To be clear I'm not talking about a show presence but an actual convention

By adding Starcraft, Diablo and Warcraft to their lineup, they have significantly increased their PC IP stable with notable franchises. With well established hardcore fan bases.

Likewise by adding Spyro and Crash Bandicoot they've bolstered their family friendly content.

And of course the Call of Duty franchise is one of the most successful in video game history. That's a lot of casual and hardcore gamers that just love to play first person shooters. 

At this point I think its undeniable that Xbox gamepass is the Netflix of gaming. Absolutely undeniable. Microsoft is moving as fast as it can to gobble up game developers, and established IP in multiple genres. But most notably they are gobbling up a ton of established talent. A ton of experienced developers.

So inevitably when PlayStation or Nintendo decides to make a serious move into the subscription model its going to be extremely hard for them to compete against Xbox' content library.

And if Xbox decides to keep all of these studios in full production. They're just going to have so much content available, that many gamers are going to subscribe to gamepass by default and from there consider what other gaming services may be worth a look.

No matter what Amazon or Google or even PlayStation does at this point. Xbox has a clear content/first mover advantage with gamepass and based on the current gaming landscape, its going to have this advantage for years.

Remember it takes like a year and a half to make a movie or show. But for quality games it can easily take 4+ years. That means that Xbox is going to have around a 5- 8 year timeframe where they will be significantly out producing all the competition.

People are going to get very very familiar with gamepass and its advantages. They're going to get used to day 1 availability on game pass, they are going to get used to getting a new high quality game every three months. They're going to get used to playing exclusive MMOs with their friends on the xbox platform and they are not going to want to leave once they are able to experience these benefits for a prolonged period of time.

Disney+ has come on to the movie/streaming scene and blown everyone away with their growth(over 100 million subs). But don't forget they've entered with a cheaper price than Netflix and had a huge back catalogue of content that already had a ton of fans.

Xbox has been working on backwards compatibility for years, and by buying up these big name publishers and studios they will be able to add even more content to its back catalogue. Netflix didn't have this when Disney+ arrived on the scene.

It makes you wonder if PlayStation/Nintendo will ever consider a merger. My guess is that Nintendo eventually goes the way of Sega and becomes multiplatform.

Perhaps one day in the future, if Amazon, Google or Apple decides they want to seriously consider getting into the gaming market, they make a move to purchase Sony. That's really the only move that makes sense for a company to have any hope of catching up to Xbox anytime soon.

But the question is how long will that take? If they take too long it will be too late. Every year that Xbox has is another year of development time lost.

Ultimately I think this acquisition is a defensive move as much as it is offensive. 10 years from now, if video game streaming is mainstream and Xbox is the clear leader, I think many of us will look back at this moment in time, to see that this was the turning of the tide, this is where the seeds were planted.

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