Microsoft Is "Going To Remain Active" On Acquisitions To Compete With Tencent And Sony
We can all agree that the consolidation of the video game industry is not good for anyone – except the suits, of course. Major companies feel the need to acquire more studios to widen their portfolios and continue competing with each other. Microsoft and Sony are no longer just companies by themselves, but also include all the studios they now own. Meanwhile, massive conglomerates like Tencent and the Embracer Group continue to acquire any studio that they can.
It seems there's no end in sight to this trend of acquiring studios, as Xbox boss Phil Spencer has said that Microsoft won't be done after the Activision-Blizzard deal is finalized. In a conversation with Squawk Asia, Spencer said that the competition in the industry is so strong that Microsoft will have to stay on a steady course of partnerships and acquisitions if it is to compete (thanks, PC Gamer).
"This is such a competitive market, I don't think we get to press pause on anything," said Spencer when asked if Microsoft will continue with its acquisitions. "Tencent is the largest gaming company on the planet today, and they continue to heavily invest in gaming content and game creators."
"Sony is a larger business than we are in gaming today, and they continue to invest. It's a highly, highly competitive market," he continued. "We strive to be a major player. We want to deliver great content for our players, and we're going to remain active."
Unfortunately for Spencer, the Acti-Blizz deal has hit a roadblock. UK's Competition and Markets Authority is still not happy with the results of its investigation of the acquisition, and has hence put the deal on hold for further investigation. The CMA is investigating the deal to determine whether it will result in "substantial lessening of competition" for consoles and digital storefronts. The authority has declared that the new investigation will last till March 1, 2023.
"The CMA is concerned that Microsoft could leverage Activision Blizzard's games together with Microsoft's strength across console, cloud, and PC operating systems to damage competition in the nascent market for cloud gaming services," said the report by the CMA.
Source: Read Full Article