• comicallycluttered@beehaw.org
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    1 year ago

    Blizzard doesn't really have to do anything to justify their purchase.

    I feel like a lot of people keep focusing on PC/console part of the sale and have completely ignored what was most likely the primary goal for the purchase: King and getting into the mobile space where there's a lot of money to be made.

    Not to say PC/console wasn't a factor. It absolutely was. CoD in particular, getting other well-known IP for bolstering their console offerings, and maybe WoW as well. But I'm willing to bet that a lot of the other IP was more of a "package deal" that would be a secondary revenue source.

    King's games alone will make them a fortune. They already have successful titles with longtime built-in audiences, and the people who primarily play mobile games and aren't interested in PC/console very likely don't know or care about this deal.

    King's annual revenue has climbed to over $2.7bn in 2022 and that's an increase from the $2.5bn from the year before. It's very likely that this year they'll hit closer to $3bn (if not reach that milestone completely) and they've already made $20bn in total revenue as of September this year.

    The pace of that growth, if it continues, will have them hitting another $10bn within around 3-4 years.

    Candy Crush Saga alone will bring in more money than most of Blizzard's games ever could, and that's not even counting the rest of King's "Saga" games.

    There's a reason ActBlizz paid nearly $6bn to acquire King. And it's very likely the one of the driving reasons Microsoft spent this insane amount to acquire ActBlizz in turn. The mobile market has grown even more since AB's King acquisition.

    Now, not only do Microsoft get lucrative PC/console IPs, but they immediately gain one of the most successful brands in the mobile space, an area in which revenue keeps rising year over year, without having to touch mobile themselves.

    So if we're talking "Fortnite tier piles of money", Microsoft already has that area covered right now. Unless mobile suddenly crashes, they'll make their money back within a few years if we're counting that, CoD, and a few other popular IPs which they're hoping to use to boost Game Pass and console sales.