Microsoft, Activision Blizzard M&A Conference Call: Metaverse, Cloud Gaming Launch New Series of Hard Tech World Wars
It's a global challenge and a lot of difference.
The objectives of mergers and acquisitions are human (team skills and knowledge), financial (cash flow) and economic (vertical and horizontal expansion above and below the chain). And, of course, barbarians at the door.
Microsoft spent nearly $70 billion on Activision Blizzard to circumvent our content. The views of the parties in the previous announcement are not repeated here. The goal is to schedule a conference call with 4 leaders on January 18 at 9:00 am EST. They are Satya Nadella, President and CEO of Microsoft, Bobby Kotick, CEO of Activision Blizzard, Phil Spencer, CEO of Microsoft Gaming, and Amy Hood, Chief Financial Officer of Microsoft.
The four discussed the direction of the joint venture and the prospects after the merger of the two companies. In summary, it can be divided into three categories: metaverses, community and cloud games (mobile games).
On the community side, Activision Blizzard has 400 million monthly users, and Microsoft and XGP services are also for community users. After a joint venture between the two parties, services such as Xbox ID can provide features and innovations to developers in the ecosystem.
The main body of the gaming industry can be divided into two segments, the first part being mobile games and the second part being cloud games. The Wang team can make the Microsoft game competitive in the mobile game. Activision Blizzard's "Diablo", "Call of Duty", "Overwatch" and other excellent IP wallets can support Microsoft's cloud gaming product matrix.
As Microsoft executives said at their conference, games are the latest technology, innovation and innovation. Today, the competition for skills is unprecedented and change is evolving daily. The use of cloud computing, intelligence, machine learning and other technologies for sports will create a wide range of sports in the future. The virtual and physical worlds are rapidly coming together. The primary goal of Microsoft's acquisition of Activision Blizzard is to manage the digital business of the future.
The acquisition of Activision Blizzard by Microsoft should be decided in terms of technological competition.
As high-tech companies support the new wave of challenging content, we believe that Chinese sports companies should accelerate and deepen their overseas expansion and encourage the acquisition and integration of digital content companies.
Only then can we stay behind in the global competitive digital marketing landscape.
Here is a slight modification of the conference call.
Satya Nadella, President and CEO of Microsoft:
Thank you to everyone who joined us to discuss the partnership between Microsoft and Activision Blizzard, a key topic for the entire gaming industry.
First, we announced total Activision Blizzard revenue of $68.7 billion. It will be the biggest product in the company's history. We invest in building a strong gaming ecosystem. In this system, gamers can easily access world famous gaming content across multiple platforms.
For Microsoft, every purchase is tied to corporate responsibilities. We want this to happen to every person and organization in the world. Activision Blizzard is the world's leading game developer, connecting and engaging with the world of gaming. This aligns with corporate responsibilities. Our mission is to bring fun and community play to everyone around the world.
Back to the more pragmatic industry, the game industry is now more competitive and stronger. Games are the biggest and fastest growing digital entertainment. When there is a broadcast, the games connect with people isolated from their homes, raising awareness of the online community's involvement.
There are currently 3 billion gamers worldwide. We believe that with the emergence of a new generation of online games and the growth of the online community, the number of gamers worldwide will reach 4.5 billion by 2030, top languages and streamers.
But now there are many problems with game content, users and sales. We also face strong competition from other companies that make more money from sports than hardware or brand companies. Microsoft needs more investment and strict innovation in the content industry to reduce the global distribution process. The reason is simple. What we want is to make it easy for players to be aware of the game anytime, anywhere.
Microsoft's vision is to create an environment where content and professional content can flow freely, consistently and bring the video game industry back.With Activision Blizzard, we can integrate the digital and physical worlds and bring the metaverse to an untimely death.
Based on the vision of the metaverse, we strongly believe that this will not happen as a middle ground.
You can create a better game for gamers, communities online and clouds with moving bugs. You can also create a lot of prices for participating consoles, PC and mobile phone quality content.
Activision Blizzard has several gaming IPs such as "Call of Duty", "World of Warcraft", and "Candy Crush Saga". Additionally, last year it acquired Genimax and acquired B's IP companies including Doom, Elder Scrolls, and Fallout. This greatly improved the company's first line of board games.
Importantly, the deal will also help streamline the company's mobile gaming industry structure. Activision Blizzard's distribution king is a leader in mobile gaming. Going forward, we'll be bringing as many Activision Blizzard games as possible to consoles, PCs, and phones to help Game Pass players. Based on this, we will strengthen our game theme and integrate distros into multiple terminals.
The second is the online community.Activision Blizzard currently has 400 million monthly employees in 190 countries. Microsoft is reaching more gamers through its Minecraft and XGP services. It has more than 25 million users. Microsoft will partner with Activision Blizzard on Xbox ID to become the largest and greatest digital entertainment community. We are happy to create a positive developer experience.
Finally, there are cloud games.As mentioned before, we want everyone in the world to be able to play anytime, anywhere. That's why we're investing in Xbox cloud gaming by deploying servers in archives around the world.
Another asset is culture. According to the CEO of Microsoft, the establishment of a cultural organization is essential. This means that we must continually improve the life experience of our employees and foster a culture. It is difficult and requires leadership and achievement. Embracing the new Activision Blizzard culture is paramount, and we will support Activision Blizzard, recognizing that there is still a lot of work to do once the merger is complete.
The exchange is expected to close in 2023, when Activision Blizzard announces Microsoft Gaming CEO Phil Spencer. Over the past 30 years as CEO of Activision Blizzard, Bobby Kotick has transformed the company into one of the most entertaining and profitable businesses in the world. Here's more from Bobby talking to him about his future.
Bobby Kotick, PDG d'Activision Blizzard :
Thank you Satya. It is an honor to join one of the most respected companies in the world.
I still remember your first day as CEO of Microsoft. You then shared your company's vision to help everyone in the world achieve their goals. This made me think deeply.
Activision Blizzard's vision is to connect the world and inspire gamers with joy. 31 years ago Brian and I started this business. In the process, we've grown into a company of 10,000 employees who use ingenuity and expertise to create games for gamers.
When we first talked about collaboration, when we were talking about the crash of tech, IP, and Microsoft's big capital, Brian and the board thought there would be a better way to promote the virtual world game development after integration. Win in an extra race.
Activision Blizzard and the King team have turned the game into a social game that allows players to find the theme through the game. We provide players with a fun stream daily through our game IP and community. How to connect these communities is an important step in creating the metaverse. Many companies around the world develop games and have ideas for creating a virtual world. You see the possibilities for expertise, UGC, and socializing in the virtual world.
I believe that Activision Blizzard's technology and intellectual property are essential to the development of the metaverse. We have worked hard to attract good manufacturers to develop our IP series for development.
We are delighted to be part of the Phil Spencer team. Let him talk to you next time.
Phil Spencer, PDG de Microsoft Gaming :
Hello everyone, it must be a very happy day.
On a macro level, Microsoft Gaming aims to continue to make the online gaming community fun for everyone around the world. The acquisition of Activision Blizzard promises to sharpen the vision. Once the deal is done, Microsoft Games will become the third largest game company after Tencent and Sony.
We believe Microsoft Games can leverage technology, game development, and more to provide gamers with a truly interactive and fun ecosystem. At the end of the agreement, Activision Blizzard could contribute IP, talent and players to Microsoft games. These series will be integrated into the ecosystem in the future.
I want to reiterate that this change is not for short term income. We've seen the Activision Blizzard product showcase, and we believe it. By adding Activision Blizzard Classic IP to Microsoft Games, you can become a leader in cloud gaming, mobile gaming, and subscription services.
As the attractiveness of the Microsoft platform grows, developers and gamers are shifting to two wheels, which will create a nice circle. As Satya said, this recommendation is very exciting when considering Diablo, Call of Duty, and Overwatch encounters through cloud gaming.
Not only that, but marketing is also important in creating the Metaverse for players outside of gaming. Microsoft Games' vision for Metaverse is rooted in the classic IP and gaming community, especially mobile gaming. Personally, I'm very happy to have learned from the King team.
Overall, we will continue our mission to provide players with a fun and engaging gaming community. I am very happy to work with Activision Blizzard.
Amy Hood, CFO of Microsoft:
Thanks Phil.
With this win, we will continue to dig deeper into the three pillars of the gaming industry: content, community, and cloud gaming.Metrics that measure our success include: Connecting content to multiple end platforms. Activision Blizzard's premium gaming IP will drive revenue growth, increase engagement and benefits on the Xbox platform. The Game Pass subscription service is expected to continue to grow as it reaches gamers everywhere and helps them generate AAA points.
Now let's look at the story of change. Purchase does not affect previously announced redemption services. The company closed in fiscal year 2023, as approved by Activision Blizzard shareholders and regulators.
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