The Big Deal: What Microsoft Activision Deal Means for Brands
Microsoft last week sealed the deal on its $69 billion acquisition of Activision Blizzard. This groundbreaking move solidifies its position as the highest-value tech merger in history, marking a pivotal turning point for the industry giant.
Microsoft now emerges as the “third largest gaming company by revenue, trailing only behind Sony and Tencent. Of course, the acquisition brings big-named titles. As the integration unfolds, Activision Blizzard’s acclaimed titles are set to enrich Microsoft’s gaming subscription platform, Game Pass, in the upcoming months.
The Mobile Market and Brands
The acquisition also includes the ownership of mobile game company King, a subsidiary of Activision known for the creation of games like Candy Crush Saga. With an expected $433.1 million in US ad revenues this year alone, this strategic move positions Microsoft to capitalize on the thriving mobile gaming market, thereby amplifying its influence and revenue streams.
Big Picture: Going beyond immediate gains, Microsoft’s acquisition serves to fortify its future leadership in the gaming industry and establish a sturdy foundation in swiftly burgeoning markets.
As I mentioned in a previous post, US mobile game ad spending is expected to reach $6.67 billion this year and Microsoft is looking to Activision’s aggressive push into the market to capture a piece of this very valuable pie.
Last month leaked documents shedding light on Microsoft’s ambitious plans for in-game advertising underscore the company’s comprehensive vision for the future. The leaked documents mentioned above also laid out Microsoft’s plans for in-game advertising. The company expects to make $1.4 billion from in-game advertising by 2030.
A large chunk of that will likely come from mobile gaming.
Conclusion
For brands seeking to establish their presence within the gaming realm, this monumental shift signifies what many of us have been building toward for years: mobile gaming is a burgeoning avenue of opportunity.
This strategic maneuver is set to open new gateways for brands to engage with their audiences in an immersive and interactive manner, fostering deeper connections and enhancing brand visibility within the gaming community.
