Why cloud gaming not call of duty might kill the activision merger?


The proposed merger between Activision and Electronic Arts (EA) has been in the news lately, with many industry experts speculating on the potential outcome of this massive deal. However, there’s one major factor that could jeopardize the success of this merger: the rise of cloud gaming.

What is cloud gaming?

Cloud gaming, also known as game streaming, allows players to stream games directly from remote servers, eliminating the need for local hardware to run the game. This technology has been gaining momentum in recent years, with major players like Google, Microsoft, and Amazon investing heavily in their own cloud gaming platforms.

One of the main advantage 

One of the main advantages of cloud gaming is that it allows players to access high-quality games without needing to invest in expensive hardware. As long as players have a stable internet connection, they can enjoy top-tier games on almost any device, from smartphones to laptops to smart TVs. This ease of access has the potential to disrupt the traditional gaming industry, which has relied heavily on console and PC sales to generate revenue.

how does cloud gaming threaten the Activision merger specifically?

So how does cloud gaming threaten the Activision merger specifically? The answer lies in Call of Duty, one of Activision’s most popular franchises. Call of Duty has traditionally been a console and PC game, with players purchasing physical or digital copies of the game to play on their own hardware. However, if cloud gaming becomes more popular, players may opt to stream Call of Duty instead of purchasing their own copy of the game.

How could it be problematic?

This could be problematic for the Activision merger for a few reasons. First, it would reduce the revenue generated from Call of Duty sales. If players are streaming the game instead of buying it, Activision would miss out on a significant source of income. Second, it would reduce the value of Activision’s intellectual property. If players are streaming Call of Duty on a third-party platform, the value of the game as an exclusive Activision franchise is diminished.

Can we predict how cloud gaming will impact the industry?

Of course, this is all speculation at this point. It’s impossible to predict exactly how cloud gaming will impact the gaming industry or the Activision merger. However, it’s clear that the rise of cloud gaming is a potential threat to the traditional gaming model, and it’s something that both Activision and EA should be keeping a close eye on. As the gaming industry continues to evolve and new technologies emerge, it will be interesting to see how these major players adapt to stay ahead of the curve.