How Microsoft And Sony Could Change The $200 Billion Video Game Industry
ฝัง
- เผยแพร่เมื่อ 24 ก.พ. 2022
- Big moves are happening in the video game industry. Microsoft, the tech giant behind the Xbox console, announced plans in early 2022 to buy Activision Blizzard, the force behind "Call of Duty" and "World of Warcraft," among other major titles.
This $68.7 billion all-cash acquisition is expected to close in 2023. If approved by regulators and shareholders, it will be the largest tech deal in history.
"There's been a consolidation wave going on in the game space for the last several years," said Eric Handler, managing director and senior research analyst at MKM Partners. "You've had a lot of private equity money flow into the industry. It's highly fragmented. It's just natural to see consolidation. Microsoft being a trillion-dollar company, obviously, they can do bigger deals."
Shortly after the Microsoft-Activision purchase, Sony announced plans to buy Bungie in a deal valued at $3.6 billion. Bungie is currently the developer of the Destiny series, a multiplayer online game that incorporates first-person shooter and role-playing mechanics. Bungie remains best known for creating the original Halo, a first-person shooter that launched with the first Xbox console in 2001.
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How Microsoft And Sony Could Change The $200 Billion Video Game Industry
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After hearing things like this, I keep being more and more impressed that Nintendo still exists independently, let alone holding its own against these 2 giants.
Nintendo was always a giant. They make consoles lol
Nintendo is the William Regal of the video game industry. From being the Real Console's Console to King of All Things. LOL!
Nintendo is the only company that solely makes consoles, but they're hardly small being worth 70 billionish themselves. The main reason they still exist is exclusives, a virtual monopoly over the handheld gaming space, name brand recognition/loyalist fans, and exclusives.
Nintendo is its own market tbh. They have created their own niche category
yup, and i couldn't be more happier that they staying with same strategy, making good game and sell it.
Completely misses the point of MS spending that much for Activision: Cloud, cloud, cloud
Exactly
What? Why anyone need video games for cloud cloud cloud?
Yes!
@@TheBooban Clound Gaming - like Netflix just for Games
Gaming on every screen: on iPads, on Smart TVs etc
I think there are a thousand of reasons and one of the biggest is MS having a lot of cash right now. Second biggest is the datacenter or the cloud, lots of money will be saved if game servers are within MS datacenters. Third is potentially a Microsoft universe where people almost don't leave the platform like work, education, entertainment.
Yeah, they are all in one, I remember before that Office apps are like word, Excel, PowerPoint and Outlook but now they have Delve, Planner Power apps, power automate, SharePoint, One Note and Yammer
Hey
Meta lol!
Fun fact: Activision was formed by former Atari game programmers with the goal of making higher quality games than what Atari was making for its own console.
Well they failed.
They could do it again. All the devs leave and start over. Then what does Microsoft have left for 67Billion?
@@TheBooban Activision is a publisher, so they’d have the world’s largest publisher with nothing to publish.
Pitfall! was pretty cool for its day.
@@BenKlassen1 Pitfall! with Jack Black!
That wasn’t Sony’s response, Sony had taken months to work out those details and the two announcements were within days of each other. Do better research next time,
Don't forget about us PC gamers. Blizzard alone has diablo1/2, starcraft1/2, warcraft series all pc exclusive. If you're gaming on a PC you're using, most likely, windows. Microsoft is making out bigger simply b/c they have PC and Xbox to leverage.
@@juandaviduribe3139 LEL Apple with a huge part of the PC OS market is fresh.
@@juandaviduribe3139 i didnt know that apple is now a market leader on computers and os. I must be living in a different multiverse.
@@juandaviduribe3139 Microsoft sells computers. Just not gaming computers
@@juandaviduribe3139 and Windows
@@patienceisalpha Then which company sells Gaming Computers?
Sony buying Bungie was being worked on back in summer 2021 before Microsoft bought Zenimax or Activision Blizzard
microsoft announced its zenimax acquisition in 2020
I support this deal 100%. ActivisionBlizzard is a sh*t show right now. The cultural changes Microsoft can bring will be better for the workers and hopefully better for the consumers.
Games are more interesting and exciting to play than watching movies or television.
That's because they are both a video (movies, tv) and a game (monopoly, battleship) they Are both they are Video Games
A lot of people including myself would disagree.
yes and no. now with so many game developers and titles all over the world, there is also a ton poorly made games. we only now have an option to play good games over poor movies or TV.
most single player games right now also have fluff in them, to make the game appear longer or bigger than it really is.
Different forms of media. Games are active, tv is passive. Not much cross over. Kids these days just spend passive leisure time consuming content here. Not tv. But other than that stuff hasn’t changed. The fact that Luxus is here commenting this is proof video games aren’t as exciting as other things. Else he would be playing the game not commenting on CNBC
Video games are incomparable to Television and Movies. Video games are a beautiful art form but I would argue that because of the interactive nature of video games it becomes more of an escapism (for the viewer) than a creative exercise in the way that (quality) movies, books, and television are. People don't tend to become socially isolated and stunted addicts with television in the same way that one does with video games, and it is a more relatable and pragmatic art form for others to bond over and commentate in a way that video games simply are not because their primary objective is entertainment and repeatability with few exceptions other than say GTA or The Last of Us or whatever but even when narrative, story and writing are important they are secondary to game play where as they are central to books, television, and movies.
Video games are entertainment tools and computer software programs, representing advances in technology and productivity. For tech companies such as Tencent, SONY and Microsoft, the integration of the game industry is also an increase in technological prowess.
Hope this could help Blizzard revive their legacy games
3:59
Yo what was that LMAO
Cnbc pro gaming
It's exciting to see what Sony does with MP going forward. They now have several MP projects in the works. I am also interested in these new genres and sub-genres that are a mix of MP and SP. Ubi is experimenting with it and we have seen releases from other publishers with that mix.
Yes! So happy your covering this ! Gaming is awesome😁😁👊👊 however
I still love pc with all the Neon lights and components I don't think I can Video Edit over online 🤔🤔 definitely don't want to stream that anytime soon
Microsoft will bring Starcraft 2 the love it deserves.
Now may be a good time for a bunch of developers to come together and create a 3 new console or platform that would be more affordable with great games kind of like what sony did when we only had sega and nentendo.
It will not last.....see you dont even remember google stadia or the rest that tried..
From what I hear stadia is still going but it could not live up to the hype it had problems at launch and it lacked exclusive content
@@ararejamaican2551 sorry update I heard they're dropping stadia they should sell it
@@kbnice2393 Stadia and Steam could have done something big.
@@YourXellency I agree and I hope their failures don't discourage somebody else from coming along doing something great
These people actually have no idea that they’re talking about lol. Microsoft is assumed to be selling their consoles at a loss, especially the series S, so referring to them as “pricey” and a laptop being a cheaper alternative in the future is hilarious. The series S is like $300, and you would need an equivalent 600-800 PC to have comparable specs for a game.
Nah you missing it. Diehard will go for the systems. Always. Mobile is the biggest money maker. Everyone has a phone or laptop already. So if you cvan get those casuals to buy the subscription $$$$$.. Next. If they make. Deals with hotels to have it on there tv already $$$$ other tv company's $$$$ you thinking small picture end of the day there a company and it's all about making money.
They're talking about a cheap low spec laptop for streaming games
Say it like it is my guy @JB
@@viper341 what cheap low spec laptop is cheaper than the $300 series S (that can even run games)
Your missing the point. Most people want to have a laptop anyway or already have one.
My issue with Micromanagementsoft is they could very well restrict Operating Systems and Hardware that could interact with Blizzard games. I would rather see them go bankrupt, or be completely open source .
I think it’s the opposite. MS has been trying to get there games on as many platforms and OS as possible. They would put their gamepass on PlayStation if they’d let them.
Like how microsoft is micromanaging all it's other game companies... respawn etc?... More research needed from OP I think
@@dyse13 Respawn is not owned by Microsoft lol
We need a whole new separate console from these. One where true ownership is involved. Little do people know is you can buy and purchase all you want but you don't truly own any of it.
you can get a pre built PC and use the GoG store. If you really want the console-like look there are a lot of 3rd party options out there.
That's where investing can be extremely useful. The Microsoft stock gives you dividends. So essentially, you can use Microsofts money to buy there products.
They have one.. it’s called the Xbox 360 😂🤣
Microsoft isnt even competing against Sony anymore. They have their eye set on other soon-to-be players such as Google or Amazon who have the resources and money to get into gaming, especially with the advent of cloud gaming. Sony unfortunately is behind the curve on that and is not on the same level
yet playstation still destroys xbox in marketshare 🤣🤣
@@haught7576 long term, that's not where the money is at....
@@dx181818 sure but in the long term thats not where the money is at 🥱. Sony playing checkers while Microsoft is playing chess 🤫
Microsoft is trying to beat Facebook and google to the metaverse. I don’t think Microsoft really cares for Sony.
All of them has fantastic game titles to their credit, it is no longer about competition but carving out their own niches in the metaverse.
It's called common sense. They did it to make even more money. It will have way more people buying the Xbox live memberships meaning a lot more money being made in the long run.
As someone who hates seeing MS buy up all his favorite properties I have to admit that MS probably just saved Activision/Blizzard from itself
This is exactly what I don’t want. I would like to se more exclusive titles today go un-exclusive to be on both consoles, this is going in the wrong direction. Friends that have different consoles should instead be able to play against each other in multiplayer modes of games and why would they lock 🔐 it exclusively to there platform when they then loose sales from a large part of the gaming industry the other console maker have. Protectionism isn’t the solution in the gaming industry.
Cloud gaming will Eliminate this. As long as you have an internet connection, a screen, and a subscription to gamepass you can play with your friends on almost any device. It could even be done on PlayStation, but I doubt they would allow it.
I am delighted to hear this news. I knew holding large shares of MSFT would pay off someday. Its a stock that goes up and down but mostly UP! Keep it up.
Nice video.
the 100k Wayne Dreadski hbar giveaway is so sweet
Dude the fact they got 70 cash deal crazy
Microsoft and Sony make exclusive games so even though two studios owned by the same company Microsoft would want to make a better exclusive game making still competitive.
They don't make exclusives anymore since all of their games are also on other platforms mainly PC. Exclusive is a game for ONE platform only. Nintendo is the only one left that has real exclusives in this day and age.
Microsoft is going for the budget minded gamers, with Gamepass and the ability to just stream all of the games on it, one no longer need to spend a ton getting a gaming device any more. You can play games with the highest graphics using the cheapest potato PC or phones.
live services for games is pretty much a must if they want too keep a games player base or growth especially since most games that are realest now are just garbage to begin with, crappy or notenough content bugs and so on
I love video game news
monopolies every year bigger! that should be stopped
Microsoft won’t become a Monopoly after they buy Activision in 2023 they are still gonna be in 3rd place behind Sony and tencent, and EA not that far behind from Microsoft only about 3 billions dollars, wanna see what a real monopoly looks like? It’s called Tencent they are monopoly.
@@stevenmolina6958 tencent is only a monopoly in China and not in the rest of the world ..
@@DanielReyes-iq3bd Nega what? Tencent is a Monopoly around the world Nega
Would it really be the largest tech deal in history? Isnt this tied with Dells aquistion of VMwarre?
there is too much missing from this video essay the information is out there
Microsoft is getting ready for the metaverse. Just wait and watch.
Flashgitz needs to make a video about dis!
wayne dreadski has forecasted every hbar prediction
Stop gaming altogether we need to focus on issues like making money instead of making these corporations more powerful and become a bigger monopoly than before.
I would have just approach the individual developers or team of developers.
Some weird omissions and other misreporting's in this video. Also - most of the people talking, save on indie developer, don't really seem to "get" the industry and seem rather ignorant about it.
8:40 Its not a matter of "come a day in the future", game streaming services already exist on PlayStation Xbox and NintenDONT switch.
no doubt on this
a car or 50k or 100k from Wayne Dreadski would be dope
Hopefully, they keep these games multiplatform.
I don't really care but I realized humanity spends more on video games than homes for the homeless in my country and I find it funny.
I wonder what 68 billion dollars looks like in real life, and I wonder why they didn’t round it up to 69 billion 😂
when can i load world of warcraft on my $1000 xbox
i CANNOT believe... that a videogame topic is on a serious channel.
how microsoft and sony plan to sell video gaming systems worth $200 billion by advertising in cnbc
Sad news I love the elder scrolls and finding out the elder scroll 6 will be an xbox exclusive is heartbreaking but I still wont buy an xbox playstation for live
What’s with the music ?
Great news! I hope MS focuses on making majority games cross platform and pick up the slack Blizzard/Activision has. Also, it would be good they buy steam on PC and make most games available via MS store! I went to PC gaming and had to rebuy games.
The early days gaming was for the players. These days the games are becoming more like disposable fashion with developer and platforms becoming more greedy and mobile app market is a cowboy industry. Any one with an old mobile phone a laptop and some server you pull out some landfill can start up one of these digital services! When some thing goes wrong with these digital services you expect great customer support! Unfortunately that’s not alway case on simple common problem of software bugs and developer won’t take responsibility to fix it or refund you money! That’s why we need a digital services and platforms ombudsman!
they were never for the player.
@@xBINARYGODx They were in the golden age of late 80s to early 2000s. Since them we have only isolated gems for players, the rest is a cash grab for money and big corporations.
High hopes that the acquisition will clean up the disaster that is Activision Blizzard and make it a good company again.
it's not poking, it's competing so people have a drive to make things better
No matter how many mistakes you make or how slow you progress in trading, you are still way ahead of everyone who isn't trying
Or who quit after the first bad experience the falling 97-99% are not a myth! It's a logical
Investing in these economic crisis will be one of the best thing to do
You're right I think Crypto is the best to invest right now☺️ crypto will hit 29k which they will be alot of buy then and they will be a bull run in the market 💯
I wanted to trade crypto but got confused but the fluctuation in price
That won't bother you if you trade with a professional like Mrs Margeret
Why are all their games running at 10fps???
200 billion gaming industry? Seems like a small valuation
I’m just grateful Sony are also releasing their first party exclusive games on PC. I prefer to game on my Razer Blade over the Xbox or PlayStation.
Sadly, game devs are setting up systems that harm our reward inscentive psychology. Lets focus more on story, not rewarding us for doing nothing, less RNG and give us a nice reason to play. Early WoW We played for the adventure and fun...not the daily grind we HAD to do. We are told we are 'Heroes' or 'Champions'. The reality is nought...its fluffing us up and a weak sauce conclusion. Heavy focus on CGI trailers, if only they spent more time on world building and whats FUN.
They need to make more Next Gen consoles
No, people need to stop buying them and just build a pc
@@Seeyeay In the near future both consoles and desk top computers are going to be obsolete. The entire industry is moving towards streaming games. Just like people have migrated towards digital purchases they will accept the industry shift, and you will be able to play any game on any internet comparable device.
@@Psychol-Snooper this is a pretty bad take. Not only is there a significant difference between the shift from physical to digital copies and playing locally vs streaming the content, but the infrastructure alone will hinder this from being a productive or economically viable option. Like... Im willing to get into the details, but your opinion is just unlikely to happen anytime soon. If you have any understanding of how streaming works and what is required for that to occur on a mass scale, you would know its unlikely. You think stadia is doing alright? Bruv XD
@@Psychol-Snooper moving the data required to play a game from the physical cd/cartridge to an internal storage device is not comparable to streaming data online. One is the transition from one storage device type to another, cd/external ssd to internal ssd/hdd. The other is an entire transition of the infrastructure (fiber is required), processing power locally AND MOST IMPORTANTLY remotely where the game will be played from, the way in which the game are optimized and scripted in the first place. Im not saying its impossible, but its not happening soon like you propose.
@@Seeyeay Despite your emotional reaction, not only will it happen, it's already happening. Children transition to new tech, regardless to how elders resist it. Having access to all games for less that the price of a few games a year is simply too good of a deal. Being to play every game at maximized graphics on a TV represents most PC gamers deepest wishes (especially now that the chip shortage is here.)
Remember me when you are signing up for Game Pass. ;)
4b people plays video games*
Some online multiplayer games lobbies keep taking time to join
Streaming costs energy and money. Streaming massive games over the internet is unsustainable and foolish in the long term, which means it will end up costing you more than if you just saved up for a proper gaming setup.
You missed out 4:25: SOny has Marvel Spiderman and Horizon games
MS have cod, Cod solo every games ps
I have zero patience left for these big gaming companies.
Just waiting for some other company to come along and snap up EA.
Microsoft buying ActivisionBlizzard is exactly what the gaming community needs. ActivationBlizzard is a total mess and need a huge culture shift. Microsoft is the company that can get them headed in the right direction.
MS won't make Call of Duty exclusive since that won't make any business sense.
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its because of Wayne Dreadski I learned about hbar
i cant wait for Wayne Dreadski to give out more hbar
Why pay for the company? Give a fraction of that money directly to the devs and just recruit them instead. But I think this is dark days for gaming when they get bought up like this.
Then you would have a bunch of devs but not necessarily a good team.
Because it’s the IP or the brand that costs that much. Call of Duty, World of Warcraft, Candy Crush are all titles that are recognized by even the smallest gamers. Owning that brand is huge.
Wayne Dreadski will pump hbar with his new contenst
The the hell is this video? There is literally nothing change with this buyout. Minecraft wasn't made on console. Stardew Valley wasn't made on console. Neither game had the developers hunkering down with pollsters figuring out what people want. But this video focuses on a razor's edge at just consoles. PC gaming is still spawning new studios. And if successful end up ported to console. Likewise, phone development also a run of constantly new studios. Both of those platforms can do this because development on them are fairly easy to get started. As soon as you move your face away, you'll find a wide range of publishers and platforms that have nothing to do with playstation , xbox, and switch. Outside of Nintendo now, both Microsoft and Sony have released their games to pc as well. So in the end, nothing changes. Someone will release the next big hit because like minecraft, stardew valley, and countless other titles, someone or a group of someones will get together to make the game they always wanted and discover that millions of other people also enjoy it. If you want to see what I mean, look up Activision's actual full list of game IPs it owns and then compare that list to what they've released in the past 10 years. Then look up the studios that were tied to that IP.
There is alot of this story that was left over untold. Activision is stuck in an mid scandal with it CEO. He want to sale the studio first so he won't lose money over the courts cases happening right now. And Playstation have always have exclusives. That why it always out selling Xbox in the console department. It was only a matter of time before Xbox finally decide to buy other studios to complete with sony.
Somy has adventure games. XBox is just dumb sports and shooters.
@@TheBooban and racing and western rpgs.
@@TheBooban and multiplayer games lol
A billion dollars here, a billion dollars there. Pretty soon you are talking real money.
Where’s Nintendo at?
Sony buying Bungie wasn't poking Microsoft. They used to own them anyway and let them go. In other words, Microsoft doesn't give a damn about Bungie anymore. 🤷♂️
Metaverse is real
How can Zenimax cost less than Activision blizzard? If I would ask my friends if they played Skyrim, Fallout, Wolfenstein or Dishonored all would say yes to atleast 2 of those games and if I asked them about WoW then I dont know even one person who played it. Yes they played CoD but its not like they buy it every year I bough only MW3 and Black Ops 2. How can that company be worth so much?
@Ape2020 xxx wow thats so sad
Call of duty was the #1 and #2 selling game last year, that’s how lol.
Also zenimax games don’t come out all that often compared to activision/king/blizzard
Invoke antitrust and not allow the game industry to turn into the boring dystopia that is the movie industry. No one wants Netflix for games and what that will do for games
Time for someone to finally buy EA
Microsoft should buy both Activision and bungie
Activision they are already trying to buy. Bungie? While I won't say they're dead, I just think they should probably focus on Sony's next MP game.
Dam call of duty
For perspective, Activision was worth 1.5 Nintendos. They are a whale by literally any metric. Microsoft isnt a monopoly guys, theyre just a Game developer, game publisher, the app store on their proprietary OS on 90% of user clients, hardware vendor, ai platform, cloud provider, streaming service, defense contractor, enterprise software vendor, email client developer, search engine, and VR developer. Also they own Github, skype, Teams, and some other stuff but that doesn’t matter right? They should buy ubisoft and EA next. I cant wait until all of my games are on one platform. Im sure they will keep prices low and continue to innovate!
We let sprint and tmobile merge. The FTC/DOJ has been asleep at the switch for decades. I think if you ask, 90% of people think movies or tv are bigger than video games lol
Sony buying Bungie was a really bad idea they should've bought Riot Games instead. Just imagine LoL and Valorant on console.
Microsoft stock is definitely a no brained for the next decade.
*Great video. We all strive towards financial stability and a better life. It is easy to achieve this through the right investment, by living frugally and budgeting. I’m glad I learnt early in life to work hard for financial freedom*
As long as they're both on PC, I don't mind
Nice
He said sony has last of us like its a good game 😂 4:26
reading about people grabbing multi-figures monthly as incomes in investments even in this crazy days in the market, any pointers on how to make substantial progress in earning? would be appreciated.
You've got to have an Idea on what you wanna invest in carefully before going in.
The best piece of advice would be to not put too much in cryptocurrencies. Most have no actual use except for those who are already wealthy to pump and dump.
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Why the hell Microsoft just can't buy the whole Sony and make those all games in one platform that we can play!!
You know what we need… we need Sony to buy rockstar because take 2 is not managing this right☹️
Long Live Indie Games....
Right after the war ends yeah maybe.
When are we going to demand more educational value?
I’ll hop back on wow after activision is out of the picture.
Micro$oft. There’s a reason its spelled that way.
I’m sorry….but I’m not sure if the FTC knows anything about the video game market. It’s not like other tech and media industries. Microsoft buying Activision Blizzard is an absolute good thing if you understand the state of the company, and what their games mean to consumers.
im switching to xbox
What? Zynga was sold for $12.7 billion? Is Take Two stupid?