Microsoft has acquired Activision Blizzard. However, in the future, it could be about more than just a conflict between PS5 and Xbox Series X. For a long time, new trends like cloud gaming have dominated the battle between major gaming giants, says MeinMMO author Benedikt Schlotmann.
The acquisition of Activision Blizzard by Microsoft surprised and shocked many users. Many players are already fearing that games like Overwatch 2 or Diablo IV will no longer come to PS5.
However, Microsoft’s plans could be much bigger than just a few games that might not appear on the competition’s consoles. The trends in gaming have changed significantly in recent years.
Game consoles played a crucial role in recent years
For years, consoles played an important role, and big companies produced their own consoles to win over players. The three manufacturers Microsoft, Sony, and Nintendo even built their own ecosystems to bind players to them.
If you wanted to play all games, you had to buy a PlayStation and an Xbox, as otherwise you risked missing out on important exclusive titles. And this worked for years because people bought the games and the consoles. Especially because consoles always represented the more straightforward gaming experience. Much more accessible than, for example, a gaming PC, which often posed more challenges when games didn’t work as expected.
Even in this battle between gaming systems, big sums were at stake: Microsoft bought Bethesda for 7.5 billion US dollars and simultaneously introduced new games, the science fiction epic Starfield, which will not appear on PS5.
But with cloud gaming and new subscription services, this could change in the long run.
Cloud gaming could eventually replace PS5 and Xbox Series X
Digital technologies are becoming increasingly important, and the Internet is becoming faster in many parts of the world.
If you can play all current top titles from the Game Pass via the cloud on your smartphone or even on your TV, then the console you have under your TV becomes less important, as explained by the US site IGN regarding Microsoft’s purchase (via IGN).
IGN compares today’s consoles to a Blu-Ray player. While the viewing experience on a Blu-Ray player is undoubtedly the best, most people today would still opt for Netflix or other streaming services, as it is ultimately cheaper and more accessible:
- Just as Netflix displaced the Blu-Ray player
- The Xbox Game Pass and cloud gaming could displace consoles
The trend towards cloud gaming is also shown by looking at recent years. Subscription services are on the rise, and players now have to consider how much money they spend each month on various subscription services. Here, several major providers like Microsoft, Netflix, and Apple compete for users’ favor.
While online services like Netflix or Disney+ are booming, the sale of DVDs and Blu-Rays is continuously declining. DEG-Online reports a decline of 20% in 2020 (via degonline.org) compared to the previous year. This also shows that many people are now relying on digital media and no longer go to stores to buy their movies.
Subscription services are very much in trend, and for many people, it is simply cheaper to spend 10 euros per month for a variety of movies or games rather than paying 60 euros each time for a new game. In the context of games, it is often referred to as a “Netflix for gamers”.
Xbox could win where Stadia fails – become the “Netflix for gamers”
Subscriptions and streaming services are in trend: Many had hoped for a “Netflix for gamers” with Google Stadia, but Google Stadia has crashed. This is due to the lack of a comprehensive game library to bind a wide user base in the long term. Additionally, many games still had to be purchased, and Stadia couldn’t be used with Steam and others.
Here, GeForce Now is significantly more successful. Nvidia provides the hardware for streaming with GeForce Now and charges for the technology. Users already need to own the games on Steam and others, as you cannot purchase games through GeForce Now.
Microsoft, on the other hand, offers not only a vast selection of games with its Game Pass but also makes top titles available without extra charge right at release. With the acquisition of Activision Blizzard, Xbox expands its portfolio to include some of the biggest names in gaming, such as Warcraft, Diablo, Overwatch, and Call of Duty.
Microsoft is on par with Facebook, Apple, and others with the acquisition
With this acquisition, Microsoft is on par with major digital competitors like Facebook and Apple, who have already laid important cornerstones.
And these topics will be very important for gaming in the future. The CEO of Activision Blizzard explained that they had to sell to Microsoft to play along with the big companies in the world. As direct competitors, Activision’s CEO mentions companies like Amazon, Apple, and Facebook, but also firms like Netflix.
And those who want to participate successfully in this new world need resources and technologies to keep up. Activision Blizzard has therefore chosen Microsoft.
It is therefore no longer about who sells the most consoles. Rather, it is about making sure that people spend more time with their own games or their own worlds. Users should not have to set a console in their living rooms anymore but should be able to play as many games as they want over their TVs through a subscription service.
