EA is becoming the “odd man out” in gaming unless it makes a move.
Gaming companies are also trying to make a mark in the “metaverse,” virtual worlds that are becoming more popular with younger people.
Satya Nadella, Microsoft’s chairman and CEO, stated that gaming is “the most exciting and dynamic category in entertainment across all platform platforms” and would play a crucial role in the development and metaverse platforms.
He said, “We are investing heavily in world-class content and community to usher in an era of gaming where players and creators come first and gaming is safe, inclusive, and accessible for all.”
Drew Crum, Stifel analyst, said Tuesday that Microsoft’s desire to boost its metaverse “calls into question whether the implications for standalones such as Electronic Arts or Take-Two or an incumbent such Roblox and whether they may be technically and financially disadvantaged, in case the metaverse is in fact the next frontier in interactive entertainment.”
Microsoft-Activision may put additional pressure on Japanese conglomerate Sony, which is the maker of the PlayStation console as well as operator of PlayStation Studios, its game development division. This could make it more difficult for Sony to develop its own gaming platform.
While Sony develops a number of blockbuster, PlayStation-exclusive games, the company has lagged behind Microsoft in launching a true competitor to the Xbox Game Pass cloud subscription service.