Microsoft makes a big move by acquiring Activision Blizzard, shaking up the gaming industry landscape and setting its sights on the metaverse.

Microsoft announced on the 18th that it will acquire Activision Blizzard for $68.7 billion, approximately NT$1.9 trillion, making it the world's third-largest gaming company in terms of revenue. Microsoft's CEO stated, "Gaming is the most vibrant and exciting category of entertainment today and will play a key role in the development of the metaverse."

Tech giant Microsoft announced on the 18th that it will acquire Activision Blizzard, a gaming industry company, for $95.00 per share, totaling $68.7 billion, approximately NT$1.9 trillion, in cash, elevating it to the world's third-largest gaming company, behind only Tencent and Sony.

Shocking Changes in the Gaming Industry Landscape

With the news, Blizzard's stock price surged by about 25%, nearly recovering from the setback caused by the previous scandal. Meanwhile, its main competitor, Sony, dropped by nearly 10%, demonstrating the impact of this acquisition on the overall gaming industry landscape. Blizzard's current CEO, Bobby Kotick, will continue to stay on and report to Phil Spencer, the head of Microsoft's gaming division, after the acquisition is completed.

According to Microsoft's official press release, the acquisition aims to accelerate Microsoft's growth in gaming across mobile, PC, consoles, and the cloud, paving the way for future ventures into the metaverse. Microsoft CEO Satya Nadella directly stated: "Gaming is the most vibrant and exciting category of entertainment today and will play a key role in the development of the metaverse."

As an epic game developer, Blizzard is known for titles such as Diablo, World of Warcraft, and StarCraft. Microsoft plans to incorporate Blizzard's past works into its cloud gaming services Xbox Game Pass and PC Game Pass, continuing its subscription model to ensure a steady cash flow.

Microsoft's Ambition in the Metaverse

Last November, Microsoft upgraded its Microsoft Teams service by introducing customizable avatars and immersive online meeting spaces.

With the acquisition of Blizzard and multiple mentions of the metaverse concept, users can expect Microsoft to establish a foothold in the metaverse on top of its existing Xbox console ecosystem after incorporating numerous blockbuster titles. Even though no specific plans or the introduction of NFT technology have been disclosed at present, and Microsoft's gaming division head, Phil Spencer, has stated, "Currently, the exploitative nature of NFTs outweighs their entertainment value." However, he also promised that if NFTs are introduced in the Xbox store in the future, Microsoft will make efforts to avoid any inappropriate content or behavior.

Among Blizzard's works, the Diablo series is most likely to introduce NFT technology and even a Play-to-Earn system. This classic loot-hunting game created a virtual item trading system decades ago that allowed many to make a living through treasure hunting. By introducing NFT technology and improving the trading marketplace and economic system, there is indeed hope to further protect players on the ownership front, generate discussions, and polish this slightly tarnished brand.