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Motley Fool Hidden Gems Investing

Activision Blizzard: What Microsoft Got for $69 Billion

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 26 October 2024

⏱️ 36 minutes

🧾️ Download transcript

Summary

Last year, Microsoft closed its takeover of Activision Blizzard, the maker of Warcraft, Call of Duty, and Candy Crush. In the months that followed, interest rates rose, expectations changed, and Microsoft Gaming eliminated 8% of its workforce. Jason Schreier is the author of Play Nice: The Rise, Fall, and Future of Blizzard Entertainment and a reporter at Bloomberg. Schreier joined Ricky Mulvey for a conversation about: - The magic that made Blizzard Entertainment. - The state of the video game industry. - Why Grand Theft Auto VI is taking so long to develop. Companies discussed: MSFT, TTWO, OTC: NTDOY Host: Ricky Mulvey Guest: Jason Schreier Producer: Mary Long Engineer: Desireé Jones Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Yeah, Microsoft Xbox specifically is facing some issues and I wouldn't be shocked like, I don't know, this is speculation, but like, I would not be shocked if some of the folks who run the team there kind of wish the rise, fall, and future of Blizzard Entertainment.

0:31.0

He's also a reporter for Bloomberg.

0:33.0

Shrier joined me for a conversation about his book, The History of Blizzard,

0:37.0

and the current state of the video game industry.

0:40.0

I enjoyed the book and the conversation. I hope you do too. Oh, A major part of your story in the book is just how difficult it is to make a really good video game.

1:13.7

And it seems like there's two things sort of colliding in the industry right now, where

1:18.7

it's almost never been easier to make a basic video game.

1:22.0

I think Mike Moreheim in a conversation you had with him a few weeks ago said

1:26.1

15,000 new games were released on steam last year and yet it's almost been never never been more difficult to make a blockbuster video game

1:35.2

where it's taken more than 10 years to make Grand Theft Auto 6. What's happening? Why is it so difficult to make big video games these days?

1:45.0

I think those those kind of those two points are in conversation with one another

1:51.0

because I think that the blockbuster games the games that are expecting

1:55.1

to sell millions of copies at $70 a pop and are hoping to reach massive audiences

2:00.6

those are now competing with more games than ever before.

2:06.5

Not to mention the kind of the third part of this equation and an important one is that

2:11.2

a lot of games that have been released over the last decade or so

2:15.3

are so-called games as a service or as I like to call them forever games.

2:19.5

Games like Fortnite where you don't just buy it and play it through and then put it down. You buy it and you keep playing it for years and years and years. So you kind of you combine all these factors and you have these game companies that are really trying to stand out, trying to make

2:34.6

their games unique, trying to make their games feel different than competitors or at

2:39.8

least look better than competitors. And that's really tough and it's really tough to

2:44.6

stand out in this marketplace and so a lot of people are struggling with that. I

2:48.6

think the the kind of the graphical fidelity arms race is really one of the biggest factors and one of the

...

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