how does Microsoft acquiring blizzard give Microsoft a foot up in the cloud market?


As per the title really. as far as I’m aware blizzard just make game how can that benefit Microsoft when it comes to cloud gaming/technology surely Microsoft has all that tech themselves?

In: 1

The benefit isn’t in the technology, it’s in owning the rights to the games. It’s also not just the games created by Blizzard if that’s what you thought, it’s all the games by Activision Blizzard which is the parent company of Blizzard.

When they have the rights to said games they could easily make them only available on their cloud platforms, blocking other cloud platforms from having the games. It’s worth pointing out xbox cloud is already the largest cloud platform, getting exclusivity to games would only make it larger and closer to a monopoly.

Now Microsoft hasn’t said that they will do that, in fact they appear to be signing more of their games for other cloud platforms so it doesn’t appear to be an issue for now but just the fact that they could do it is enough to consider it as something that might happen in the future.

I’d imagine from Microsoft’s perspective it’s mainly about (1)owning some of the existing titles where their revenue comes from: call of duty, warcraft, overwatch, candy crush…(2) And it’s likely about the talent & the system they have for actually creating/maintaining the games itself so they can have more games in the future and draw people into the marketplace of the xbox (and I’d guess some of this tech/talent likely plays a role in other projects outside of gaming….the underlying gaming tech & skills are bleeding into more things); Microsoft isn’t leading in gaming compared to Sony. Gaming is a large market, which is attracting Microsoft since they are already so big they have to compete in large markets to make anything worthwhile. With this being said, Activision is a fairly small market cap compared to Microsoft & won’t make some transformative acquisition for the entirety of the company but likely helps to better compete in a large market.

Someone commented on exclusivity and that is very unlikely to be the case as I believe Microsoft followed through with signed contracts with other publishers, giving them the rights to also distribute Activision games for a number of years (regulators in various countries tried blocking the deal, there is a lot of anti-big tech company gov’t officials out there so this was viewed as a way to say that there should be no reason to block it since everyone else can distribute these games)…. A bit in relation to this is Sony really tried a big PR campaign against Microsoft & rile up regulators….they are probably very worried that Microsoft being a giant company is showing willingness to compete more in this space…scary for Sony.

And it’s not like acquiring Activision has to be good; it can be a waste & turn out to be bad….I personally question how great those games are and if they are getting old….have you seen battlebit recently? kind of competes with battlefied & COD, which are two giant titles in this space