ATVI & MSFT Gaming Deal
Microsoft just confimred a 10-year partnership with Nware to bring Xbox and Activision Blizzard games to the Spanish cloud-gaming platform. This announcement came just days after Britain blocked Microsoft’s $69 billion buyout of Activision Blizzard, citing concerns over competition in the cloud gaming market. This deal is an effort by Microsoft to allay fears that its purchase of Activision would hinder competition in the cloud gaming sector, which is an emerging and rapidly growing market.
This partnership between Microsoft and Nware is expected to result in more popular games being made available on cloud game streaming services than they currently are. According to Microsoft President Brad Smith, “While it’s still early for the emerging cloud segment in gaming, this new partnership combined with our other recent commitments will make more popular games available on more cloud game streaming services than they are today.” This statement indicates that Microsoft is committed to expanding the cloud gaming market and ensuring that it remains competitive.
The cloud gaming market has been growing rapidly in recent years, with the COVID-19 pandemic accelerating the trend towards online gaming. Cloud gaming allows players to stream games from servers rather than downloading them onto their devices, which can save storage space and provide faster access to games. This market is expected to continue growing in the coming years, with analysts predicting that the global cloud gaming market will reach $8 billion by 2025.
Microsoft’s purchase of Activision Blizzard would have given the company a significant stake in the cloud gaming market. However, concerns over competition led to the deal being blocked in the UK, which was a major blow to Microsoft’s ambitions in the gaming industry. The partnership with Nware is an attempt to move past this setback and continue expanding its presence in the cloud gaming market.
Activision Blizzard is one of the largest gaming companies in the world, with popular franchises such as “Call of Duty,” “World of Warcraft,” and “Overwatch.” Bringing these games to Nware’s cloud-gaming platform will give Spanish gamers access to some of the most popular games in the world. This move is also expected to benefit Microsoft, as it will expand the reach of its Xbox brand and provide more revenue streams from the sale of games and subscriptions.
Microsoft’s partnership with Nware is a significant move in the rapidly growing cloud gaming market. While the company’s bid to purchase Activision Blizzard was blocked in the UK, this partnership is evidence that Microsoft is committed to expanding its presence in the gaming industry. With cloud gaming becoming increasingly popular, it is likely that we will see more deals like this in the coming years, as companies look to capitalize on this growing trend.
MSFT Stock Forecast & Analysis
The average analyst target price for Microsoft Corporation over the next 12 months is USD 302.51 with a “Strong Buy” rating, according to 38 analysts. Stock Target Advisor’s analysis of Microsoft Corporation is Bullish, based on 10 positive signals and 4 negative signals. Microsoft’s stock price has increased by +7.52% over the past week, +8.17% over the past month, and +10.72% over the last year. At the last closing, Microsoft’s stock price was USD 307.26.