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Microsoft’s Activision deal: Forrester’s Mike Proulx and Will McKeon-White tease out the nuances


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Our guests today are Mike Proulx, VP and research director, and Will McKeon-White, analyst at Forrester—a leading technology strategy advisor to businesses around the world. In this conversation, they point out how Microsoft’s deal to buy Activision Blizzard brings the enterprise cloud software maker out of stealth as a gaming and consumer company, as it takes a dominant position in what is essentially ground zero for the metaverse.


(00:40) Intro to The Daily Tech Conversation

(00:55) Our guests today — Mike Proulx and Will McKeon-White, Forrester

(02:00) Metaverse, yes, but there are immediate reasons too to buy Activision, including 400 million active users and IP and talent

(03:56) What’s the big-picture context — future-proofing Microsoft

(04:50) Microsoft had stepped up its gaming investments over the last five years

(07:12) Microsoft looking to get the game industry out of the front-loaded investment cycle of blockbusters into a subscription drive model

(08:40) Gaming — another bet to capture a large consumer market; after ceding the smartphone operating system fight to Apple and Google

(10:39) ‘Metaverse-ish’ things that people are already doing; and what is needed for an actual metaverse — interoperability

(11:40) Gaming is already 3D, making it the ideal candidate to power the metaverse

(12:50) Big trends in the video gaming industry and how this deal might impact the industry

(13:50) The as-a-service model

(15:50) Focus on mobile-first games

(17:10) Microsoft wants to make any device a gaming device

(18:07) Competition from Netflix

(19:20) Will there be a bundled service?

(21:36) Is the tech now ready for cloud gaming?

(26:30) Is this deal good for the gaming industry — Pros and cons.

(30:28) Forrester survey — Facebook is most associated with metaverse and Microsoft the least

(31:30) How might companies like Twitter and others react to this deal

(34:00) Growing worry for Nintendo and Sony

(34:47) Are there any enterprise business opportunities here as well?

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Forbes India - Tech ConversationsBy Forbes India - Tech Conversations