After The Acquisition Of Activision Blizzard, Microsoft Will Overtake Sony As The Second Largest Game Company

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If Microsoft's acquisition of Activision can be approved by the Federal Trade Commission, Sony will become the third largest game company in the world, behind Tencent and Microsoft, according to the latest report released by newzoo. After the combination of Sony and newzoo, it will leap to the second place in terms of revenue.

Having said that, Microsoft and Sony, as game companies, will fight fiercely in terms of revenue. According to the game revenue table calculated by newzoo, the total revenue of Microsoft Plus Activision Blizzard can reach $21 billion, while Sony's revenue is $18.2 billion. Another data of Sony in this report is that its revenue decreased by 2.3% year-on-year, while Microsoft increased by 9.6% year-on-year and Nintendo increased by 1.9% year-on-year.

Newzoo believes that the increasing number of mergers and acquisitions is partly due to the fact that the top 10 game companies receive most of the revenue of the whole market, and their development is limited. As can be seen from the table, take two and Zynga will also rank among the top ten in the industry after the merger, ranking between EA and sea limited.

Daniel Ahmad, an analyst at Niko partners, believes that after Microsoft's acquisition of Activision, it will still lag behind Sony, which is contrary to newzoo's analysis. However, Daniel Ahmad admitted that he used income data for 2020.

In an interview with the financial times in early February, Microsoft CEO Satya NADELLA also believed that his company would still lag behind Sony and rank third: "even after such an acquisition, our share in the video game market will still rank third."

At that time, NADELLA thought that the acquisition agreement would be approved by the Trade Commission because it would not change the company's ranking too much, but from the report of newzoo, it seems that this is not the case.

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