After the acquisition of Activision Blizzard from Microsoft, many companies are considering investing in a software house. Above all Sony, which according to some analysts would be considering the acquisition of a large property such as SHE. But it seems that the entire Hollywood that matters is ready for future acquisitions in the gaming world: with Netflix ready to launch its own game streaming service e Disney who would be about to go shopping sprees. Also with a view to preparing for a metaverse with vague outlines but in which everyone has a certainty: videogames will play a fundamental role.
The next acquisitions in the gaming world could come from Hollywood
As all gaming enthusiasts know, Microsoft has closed a deal dat $ 68.7 billion for the acquisition of Activision Blizzard. The company led by Satya Nadella thus becomes the third largest company by profit in the world of video games, after Tencent and very close to Sony. While it looks like games like Call of Duty will also remain available for PlayStation, Sony has taken a hit worth nearly $ 20 billion in valuation on the stock market.
But it seems that Sony already has the answer readyto. As the Hollywood Reporter tells us, Sony could decide to buy a huge software house like Electronic Arts (EA), with titles such as FIFA, Medal of Honor, Madden. However, it has a market valuation of 37 billion dollars. Or move on to smaller purchases like Ubisoft (Assassin’s Creed, Just Dance) o Take–Two (GTA). The latter two would also have the advantage of being able to be important purchases not only for PlayStation and the new game streaming service that Sony wants to launch in 2022. But also for the company’s cinema division.
Sony earns more every year 3 billion net from the video game industry and “only” 762 million from the cinema industry. But having exclusives like Spider-Man also to launch exclusive games plays to the advantage of the Japanese giant. The possibility of compete on two fronts it could become a winning weapon. Especially if in the future virtual reality experiences were to cancel the division between video games and cinematic experiences.
Disney lurking
According to American market analysts heard by HR, an unexpected rival for Sony could become Disney. In 2016, then CEO Bob Iger had announced the closure of Disney’s gaming division. No more Star Wars, Marvel, or any other Disney intellectual property produced in-house. The company wanted to move to a licensing model. Because, as Iger pointed out: “We are good at making movies and TV shows and theme parks and cruises etc. But we have never shown that we have the skills for produce video games“.
But some analysts think Bob Chapek could totally turn the tide. Because the video game industry is growing faster than that of the “old” media, so much so that it is now valid 200 billion dollars a year. And why a mix between Disney IPs and the production capacity of a giant like EA could create a new market giant.
In particular, merge EA Sports with Disney com resourcese ESPN, America’s leading sports channel, might make sense. Furthermore, offering games on its streaming platform would be a move that competes directly with another Hollywood giant that is entering the world of gaming.
Neflix enters the world of gaming, even without the need for acquisitions
On January 20, Netflix COO Greg Peters explained that the company wants to focus above all on offering games starting from its most famous franchises. Certainly Stranger Things, but we can also see a future in shows like Squid Game and beyond. But they also remain open to “licensing gmajor intellectual property that people can recognize “.
Peters did not comment on the possible acquisitions in the world of gaming. But he acknowledged that Microsoft’s decision to buy Activision Blizzard to make Game Pass even more palatable makes sense. “It somehow supports our main thesis. That the subscription model it is a great model for connecting consumers around the world with games and the gaming experience ”.
For Netflix, the world of video games would also represent aa source of stories and characters for their original products, which are the key to their success. Especially now that so many major distributors have launched their own streaming service.
Hollywood, gaming and Big Tech increasingly become one with these acquisitions
If Netflix wants to integrate games into its streaming service, Sony wants to respond to Microsoft and Disney plans to expand, there are still many players in the race. And all with enormous potential. After the merger between Discovery e warnermedia, we don’t know what might happen to Warner Bros. Interactive Entertainment. But there are many analysts who think video games can become a central part of this company’s business.
And then we have to consider that in addition to Microsoft, there are other Big Tech companies that think about the gaming and cinema industries. Be Apple like Arcade that Google with Stadia they offer video game services, however different. Apple TV+ is taking its role as media company of the Cupertino giant more and more seriously. And Google has hinted that it wants to keep its role as a streaming leader with YouTube and operating systems for smart TVs, albeit at the moment remaining far from the production of paid content.
In short, it seems that the distinction between hardware / software, film and TV series and video game companies you can thin a lot in the next few years. There is a serious possibility that “streaming giants“, Regardless of whether it is streaming games, videos or programs.
What could be the effect of this verticalization for the economy it is difficult to understand. And perhaps even more complicated to say what it will mean for industrie creative. Also because the possible future of the metaverse could accelerate this erosion of the distinction between TV series, games and who knows what else. Video games and movies as we know them could become something different. And we don’t know if it will be something we will like or not.