Microsoft-Activision Merger Isn’t A Necessity For Xbox Long-Term, Says Analyst
While talking to Times magazine, Karol Severin said that there is no major reason to stop the deal.
- MIDiA Research senior games analyst Karol Severin has said that Xbox will continue to exist even if the Activision acquisition doesn’t happen.
- He also mentioned how the scrutiny the deal is getting isn’t wrong.
- Furthermore, he also said how no data suggests the deal shouldn’t go through.
Karol Severin, a senior games analyst at MIDiA Research, said that Xbox will continue to exist even if the acquisition doesn’t go through. During an interview with Times, he said the deal is vital to Xbox but isn’t the be-all and end-all for the long term.
The brand will continue to stick around in the gaming market even if the Activision acquisition doesn’t see completion.
In addition, the analyst also told Times magazine that there is no major reason to stop the deal from happening. For sure, it deserves the scrutiny it is getting from regulators as it is a major deal. But, the data and everything else suggests that the Microsoft-Activision deal should go through.
Since the start of last year, Microsoft’s $70 billion acquisition of Activision Blizzard has been the gaming industry’s main headline. From the UK’s CMA outright disapproving of the deal to Microsoft announcing a Call of Duty deal with Nintendo, it’s been eventful.
Things were looking bleak for the acquisition with the FTC looking to sue and the European Union also opposing it. But, matters have started looking up in the last few days for Microsoft after its presentation to the European Commission. The American tech giant made its big plays here, announcing new deals with Nvidia and Nintendo.
Considering how they were both concerned third parties, this was a big win and the reason for President Brad Smith’s confidence in the deal’s completion. With the UNI also announcing its approval for the deal and China also being in favor, you can’t blame him. For sure, Sony does stand in the way, and even a deal lasting more than a decade doesn’t seem to budge them.
But, it looks like the pendulum is swinging toward Microsoft and even if the acquisition doesn’t happen, Xbox will stay. Analyst Karol Severin of MIDiA Research affirmed Times magazine of this fact while talking to them. He said that all of the scrutiny on the deal isn’t wrong, but it should get the seal of approval.
The lead analyst for gaming at MIDiA Research said that no data suggest Activision shouldn’t be part of Microsoft. Everything he has seen brings up no reason to stop the deal and he sums it up well in the quote:
It’s the size of the deal that invites a lot of the scrutiny — and rightly so. It’s correct that we have this process, but the data and everything else that’s coming to light and. the data that I’m seeing do not make me think there’s any major reason to stop the deal.”
But his answer to a question concerning the aftermath in case the deal doesn’t happen was even more interesting. Severin said that even though the Activision Blizzard deal is important to Microsoft, it isn’t everything. For the long term, it’s not a requisite and Xbox will continue to thrive and exist no matter what.
This is an important acquisition for us. It’s not some linchpin to the long term — Xbox will exist if this deal doesn’t go through.”
In the face of uncertainty, those are certainly some strong words. And, they tell us Xbox will be a player in the gaming industry no matter the outcome of this deal.
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