Microsoft Studios Acquiring EA or Activision Doesn’t Make Economic Sense: Analyst

There have been lots of rumors from sometime telling us that Microsoft Studios intends to buy big developers like EA and Activision but it won’t make sense according to Morgan Stanley analyst.

Rumors were that Microsoft Studios wants to acquire these big developers and make them a part of their first party studios. These rumors arrived after Microsoft’s recent purchase of mid-level studios or creating new ones.

It looks like the company’s strategy is to buy small developers instead of mega-publishers and it makes perfect sense due to the revenue costs involved in handling those.

According to analyst Morgan Stanley, such acquiring of studios will not economically work out for Microsoft.

Bottom-line — the economics of driving a strong return from such an acquisition appear challenging, Weiss said. Microsoft would have to pay for revenue streams which couldn’t be replicated post acquisition

Microsoft is also rumored to purchase Obsidian Entertainment. Obsidian Entertainment is known for their work in Knights of the Old Republic 2: The Sith Lords, Neverwinter Nights 2, and Fallout: New Vegas. This change will also help Obsidian Entertainment when it comes to quality and scale.

Microsoft is a lot busy these days. The big giant is also stepping into the industry of cloud gaming with Project xCloud. It’s currently being tested and will be available for public testing in 2019.

It will be able to stream games for you on different devices. You will be able to play Forza on your mobile which never seemed possible before.

Xbox X018 is also scheduled for next month which is said to be full of surprises and revelations. Though don’t expect to hear anything about Halo Infinite as 343 Industries have confirmed that they have no plans for it.

Phil Spencer has assured that there will be lots of announcements so don’t miss out the event if you are an Xbox fan. This Xbox X018 event will take place in Mexico from 3 pm to 5 pm CDT on Saturday, October 10th.

Xbox Scarlet is also expected to be announced at the event as it’s been rumored a lot lately. Infinity Ward recently posted a job listing to work on a cross-gen COD game so the rumors might be really true.

Veteran Gamer, Trophy Hunter, And a Youtuber.