What the blockbuster Microsoft and Sony deals mean for the future of gaming

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Big moves are happening in the video game industry. Microsoft, the tech giant behind the Xbox console, announced plans in early 2022 to buy Activision Blizzard, the force behind “Call of Duty” and “World of Warcraft,” among other major titles.

This $68.7 billion all-cash acquisition is expected to close in 2023. If approved by regulators and shareholders, it will be the largest tech deal in history.

“There’s been a consolidation wave going on in the game space for the last several years,” said Eric Handler, managing director and senior research analyst at MKM Partners. “You’ve had a lot of private equity money flow into the industry. It’s highly fragmented. It’s just natural to see consolidation. Microsoft being a trillion-dollar company, obviously, they can do bigger deals.” 

Shortly after the Microsoft-Activision purchase, Sony announced plans to buy Bungie in a deal valued at $3.6 billion. Bungie is currently the developer of the Destiny series, a multiplayer online game that incorporates first-person shooter and role-playing mechanics. Bungie remains best known for creating the original Halo, a first-person shooter that launched with the first Xbox console in 2001. Representatives for both Sony and Microsoft declined to comment for this story.

Watch the video to find out how these deals will shape the future of gaming.

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