Explained: Why Microsoft Buys Activision Blizzard Gives It A Stronger Footing In The Metaverse Space


Why is gaming considered a gateway for business into the metaverse?

For most software and social media conglomerates around the world, the metaverse is the next stage in the evolution of the internet. Although it can have various definitions, the simplest explanation of metaverse is that it is a virtual world where people’s avatars or online identities can interact.

This means that instead of just watching or listening to content on the Internet, people can be inside the world of the Internet, creating real-time content for others, while experiencing the same. .

One of the first and main applications of this would be games. For example, games in which players can team up with players from other parts of the world via the Internet will evolve to be more interactive. Instead of choosing from a set of predefined characters, players can choose to create their own avatars, which look like them.

Additionally, this can be scaled to build communities, commercial spaces, stores and malls from which the avatars built by people in their games can be used to explore or buy things in comfort of their home. For this to work, however, the metaverse built by different social media companies and conglomerates will need to be interoperable.

The second major application will be in the sports and live entertainment industry. Both of these industries have taken the first step toward a metaverse by using virtual and augmented reality-based headsets and devices to stream sporting events as well as music videos and movies.

Why is Microsoft’s acquisition of Activision Blizzard a major step forward for the Metaverse?

Microsoft has been trying for some time to become a major player in the video game industry. Although it has the Xbox console, it has not been able to break the field of interactive game software as well as some other companies, such as Zynga, which was also acquired by Take-Two Interactive, the maker of Grand Theft Auto.

With the acquisition of Activision Blizzard, the company will have in its kitty games such as Call of Duty, Warcraft, Candy Crush, Tony Hawk, Diablo and Overwatch, among others. Although these games are available on the Xbox console, they can be further modified to allow players to enter the virtual world of the metaverse using Microsoft’s Hololens.

Facebook, which rebranded itself since last October as Meta, is also working on a virtual world where users of its various platforms can create avatars and interact with various other characters as well as shopping spaces.

Although the company also has games on its platform, it has so far focused on creating social media and workplaces that will have continuity regardless of a person’s location.

With Activision Blizzard on its side, Microsoft will be able to ramp up its presence in this space by extrapolating the gaming platform’s learnings to other users as well, an industry expert says.

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