Analysts: Microsoft's Acquisition of Activision Blizzard Will Stimulate the Global Game Market

Microsoft's acquisition of Activision Blizzard for US$69 billion is likely to trigger more mergers and acquisitions in the global game market, according to a report released by analyst firm Konvoy on October 20, 2023.

Konvoy stated in the report that currently the world's publicly listed game companies only have a total of US$45 billion in cash and cash equivalents, while the world's largest technology companies, such as Apple and Google, have a total of US$229.4 billion in cash. This suggests that other technology manufacturers may follow suit and acquire game developers and publishers, leading to a larger-scale "consolidation move" in the video game market.

Josh Chapman, a partner at Konvoy, said, "As active gaming investors, we believe gamers and gaming startups will benefit from the Microsoft deal as it enhances the value proposition for gamers and brings the potential for other deals to close. A dynamic M&A environment is good for innovation and growth."

Chapman also claimed that the global gaming industry will achieve long-term growth in the next few years. He expects that the compound annual growth rate of the gaming industry will reach 9% in the next five years, with total sales reaching US$288 billion by 2028.