Microsoft buys Activision Blizzard: with the video game industry under new management, what's going to change? - The Conversation AU | Canada News Media
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Microsoft buys Activision Blizzard: with the video game industry under new management, what's going to change? – The Conversation AU

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In 1979, a group of disgruntled Atari employees decided to quit and create their own company. Activision was the world’s first “third-party” game development company, producing and publishing titles for other companies’ platforms.

Fast-forward 43 years and the company that is now Activision Blizzard has been bought by one of the major platform owners in the industry, Microsoft, for a blistering US$68.7 billion dollars (around A$95.6 billion) – the largest sale in the history of the video game industry.

This sale is also massive in terms of the game franchises Microsoft now has control over; it now owns blockbuster franchises such as Call of Duty, Diablo, Starcraft, Candy Crush and World of Warcraft. And tens of millions of fans of these titles will now be wondering: what does this change in ownership mean for them?

Why now?

Big dollar acquisitions aren’t new in the video game industry. Activision Blizzard itself became one of the largest video game companies in 2008, when Activision merged with Blizzard in a US$18.9 billion dollar deal. Microsoft and Sony regularly buy successful pre-existing development studios to take over their intellectual properties (IP) and make them available exclusively on their platforms.

But Microsoft has become particularly aggressive in its approach. In the last decade alone it has made a number of high-profile purchases, including Minecraft developer Mojang in 2014 for US$2.5 billion, and Elder Scrolls and Doom publisher ZeniMax in 2020 for US$7.5 billion. With the Activision Blizzard acquisition, Microsoft is now the third-largest company in the industry, behind TenCent and Sony.

This is all part of Microsoft’s current video game business strategy, which is less about selling game products and more about increasing subscriptions to its Game Pass service. Similar to services like Netflix and Spotify, Game Pass gives subscribers access to a massive digital catalogue of games in exchange for a monthly fee.

In its announcement of the Activision Blizzard purchase, Microsoft also boasted Game Pass has surpassed 25 million users. With each user paying US$16 a month, that’s about US$400 million (or A$556 million) in monthly revenue.

With Activision Blizzard, Microsoft now owns a huge new range of franchises it can make available through Game Pass, attracting even more users.

While Microsoft owns Activision Blizzard, players can still play the company’s games on other consoles and platforms such as Sony’s PlayStation or Valve’s Steam, but it remains to be seen if this will continue.
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If it wanted, Microsoft might even make these franchises only available through Game Pass, forcing customers away from other consoles like PlayStation and distribution platforms like Steam. In other words, it could pull consumers into its own exclusive sphere.

This is now a common strategy. Now, through subscription-based digital platforms, we have all stopped being owners of product and instead have become renters.

This is also true of individual video games. Call of Duty, Hearthstone, Fortnite (and many others) are no longer games that players purchase once, but are instead their own ecosystems in which players are encouraged to continuously spend money on battle passes, cosmetics and access to new content.

Meanwhile, the companies that own these titles can constantly farm new data from their millions of players, further increasing their company value.

With the purchase of Activision Blizzard, Microsoft has effectively purchased a city of existing renters in the player ecosystems of Call of Duty, Hearthstone, World of Warcraft and many other titles.

That’s tens of millions of players already committed to closed ecosystems, including many in the difficult-to-penetrate Chinese market playing Blizzard titles Hearthstone and World of Warcraft. All of these players can be farmed for more personal data and more rent.




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So what does it mean for players and developers?

In the short term, probably not a whole lot.

Over the coming years, however, Microsoft might decide to keep more of these newly acquired franchises for its own platforms. For a PC player, this might simply mean having to transition away from Steam to the Microsoft Game Store if they want to access the franchises: an inconvenience, but hardly a radical change.

For PlayStation and Mac players, the situation could be more dire, and they might find themselves having to purchase a PC or an Xbox if they want to play new entries to these franchises in the future.

Some are also worried ongoing giant mergers will stifle creativity and innovation across the video game industry. But this is unlikely since the bulk of the revenue generated by the industry has always been concentrated in a relatively small number of risk-adverse companies.

In her book Global Games, researcher Aphra Kerr estimated that in 2015, the top ten video game companies accounted for 49% of the entire industry’s revenue. In spite of this concentration of capital, the creativity and innovation that produces new genres almost always emerges at the periphery, in much smaller, independent groups working with far fewer resources.

The explosion of new and diverse genres we’ve seen over the past decade occurred, in large part, because independent creators are now able to access far more powerful tools, such as game engines Unity and Unreal, and greater audiences through digital marketplaces, such as Steam or Xbox Game Pass.

The situation is far from ideal, but the companies that control most of the capital in the video game industry – and the companies that are the most innovative – have rarely been the same. So this latest acquisition is unlikely to stifle creativity.

But there’s more at stake in this historic sale. Activision Blizzard is facing accusations and lawsuits of harassment, abuse and sexism across its offices, and CEO Bobby Kotick has been under intense pressure to resign for months. Kotick is now set to walk away from the company with US$400 million; the allegations of a toxic workplace are now Microsoft’s responsibility to clean up.

Perhaps this is the important question coming out of the recent sale: not which piece of hardware will have access to which games, but whether Microsoft will take responsibility for improving the work culture and working conditions for game developers? We’ll have to wait and see.




Read more:
Activision Blizzard’s sexual harassment scandal is not a one-off for the gaming industry


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How to Preorder the PlayStation 5 Pro in Canada

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Sony has made it easy for Canadian consumers to preorder the PlayStation 5 Pro in Canada directly from PlayStation’s official website. Here’s how:

  • Visit the Official Website: Go to direct.playstation.com and navigate to the PS5 Pro section once preorders go live on September 26, 2024.
  • Create or Log in to Your PlayStation Account: If you don’t have a PlayStation account, you will need to create one. Existing users can simply log in to proceed.
  • Place Your Preorder: Once logged in, follow the instructions to preorder your PS5 Pro. Ensure you have a valid payment method ready and double-check your shipping information for accuracy.

Preorder Through Major Canadian Retailers

While preordering directly from PlayStation is a popular option, you can also secure your PS5 Pro through trusted Canadian retailers. These retailers are expected to offer preorders on or after September 26:

  • Best Buy Canada
  • Walmart Canada
  • EB Games (GameStop)
  • Amazon Canada
  • The Source

Steps to Preorder via Canadian Retailers:

  • Visit Retailer Websites: Search for “PlayStation 5 Pro” on the website of your preferred retailer starting on September 26.
  • Create or Log in to Your Account: If you’re shopping online, having an account with the retailer can speed up the preorder process.
  • Preorder in Store: For those who prefer in-person shopping, check with local stores regarding availability and preorder policies.

3. Sign Up for Notifications

Many retailers and websites offer the option to sign up for notifications when the preorder goes live. If you’re worried about missing out due to high demand, this can be a useful option.

  • Visit Retailer Sites: Look for a “Notify Me” or “Email Alerts” option and enter your email to stay informed.
  • Use PlayStation Alerts: Sign up for notifications directly through Sony to be one of the first to know when preorders are available.

4. Prepare for High Demand

Preordering the PS5 Pro is expected to be competitive, with high demand likely to result in quick sellouts, just as with the initial release of the original PS5. To maximize your chances of securing a preorder:

  • Act Quickly: Be prepared to place your order as soon as preorders open. Timing is key, as stock can run out within minutes.
  • Double-Check Payment Information: Ensure your credit card or payment method is ready to go. Any delays during the checkout process could result in losing your spot.
  • Stay Informed: Monitor PlayStation and retailer websites for updates on restocks or additional preorder windows.

Final Thoughts

The PlayStation 5 Pro is set to take gaming to the next level with its enhanced performance, graphics, and new features. Canadian gamers should be ready to act fast when preorders open on September 26, 2024, to secure their console ahead of the holiday season. Whether you choose to preorder through PlayStation’s official website or your preferred retailer, following the steps outlined above will help ensure a smooth and successful preorder experience.

For more details on the PS5 Pro and to preorder, visit direct.playstation.com or stay tuned to updates from major Canadian retailers.

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Introducing the PlayStation 5 Pro: The Next Evolution in Gaming

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Since the PlayStation 5 (PS5) launched four years ago, PlayStation has continuously evolved to meet the demands of its players. Today, we are excited to announce the next step in this journey: the PlayStation 5 Pro. Designed for the most dedicated players and game creators, the PS5 Pro brings groundbreaking advancements in gaming hardware, raising the bar for what’s possible.

Key Features of the PS5 Pro

The PS5 Pro comes equipped with several key performance enhancements, addressing the requests of gamers for smoother, higher-quality graphics at a consistent 60 frames per second (FPS). The console’s standout features include:

  • Upgraded GPU: The PS5 Pro’s GPU boasts 67% more Compute Units than the current PS5, combined with 28% faster memory. This allows for up to 45% faster rendering speeds, ensuring a smoother gaming experience.
  • Advanced Ray Tracing: Ray tracing capabilities have been significantly enhanced, with reflections and refractions of light being processed at double or triple the speed of the current PS5, creating more dynamic visuals.
  • AI-Driven Upscaling: Introducing PlayStation Spectral Super Resolution, an AI-based upscaling technology that adds extraordinary detail to images, resulting in sharper image clarity.
  • Backward Compatibility & Game Boost: More than 8,500 PS4 games playable on PS5 Pro will benefit from PS5 Pro Game Boost, stabilizing or enhancing performance. PS4 games will also see improved resolution on select titles.
  • VRR & 8K Support: The PS5 Pro supports Variable Refresh Rate (VRR) and 8K gaming for the ultimate visual experience, while also launching with the latest wireless technology, Wi-Fi 7, in supported regions.

Optimized Games & Patches

Game creators have quickly embraced the new technology that comes with the PS5 Pro. Many games will receive free updates to take full advantage of the console’s new features, labeled as PS5 Pro Enhanced. Some of the highly anticipated titles include:

  • Alan Wake 2
  • Assassin’s Creed: Shadows
  • Demon’s Souls
  • Dragon’s Dogma 2
  • Final Fantasy 7 Rebirth
  • Gran Turismo 7
  • Marvel’s Spider-Man 2
  • Ratchet & Clank: Rift Apart
  • Horizon Forbidden West

These updates will allow players to experience their favorite games at a higher fidelity, taking full advantage of the console’s improved graphics and performance.

 

 

Design & Compatibility

Maintaining consistency within the PS5 family, the PS5 Pro retains the same height and width as the original PS5 model. Players will also have the option to add an Ultra HD Blu-ray Disc Drive or swap console covers when available.

Additionally, the PS5 Pro is fully compatible with all existing PS5 accessories, including the PlayStation VR2, DualSense Edge, Pulse Elite, and Access controller. This ensures seamless integration into your current gaming setup.

Pricing & Availability

The PS5 Pro will be available starting November 7, 2024, at a manufacturer’s suggested retail price (MSRP) of:

  • $699.99 USD
  • $949.99 CAD
  • £699.99 GBP
  • €799.99 EUR
  • ¥119,980 JPY

Each PS5 Pro comes with a 2TB SSD, a DualSense wireless controller, and a copy of Astro’s Playroom pre-installed. Pre-orders begin on September 26, 2024, and the console will be available at participating retailers and directly from PlayStation via direct.playstation.com.

The launch of the PS5 Pro marks a new chapter in PlayStation’s commitment to delivering cutting-edge gaming experiences. Whether players choose the standard PS5 or the PS5 Pro, PlayStation aims to provide the best possible gaming experience for everyone.

Preorder your PS5 Pro and step into the next generation of gaming this holiday season.

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Google Unveils AI-Powered Pixel 9 Lineup Ahead of Apple’s iPhone 16 Release

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Google has launched its next generation of Pixel phones, setting the stage for a head-to-head competition with Apple as both tech giants aim to integrate more advanced artificial intelligence (AI) features into their flagship devices. The unveiling took place near Google’s Mountain View headquarters, marking an early debut for the Pixel 9 lineup, which is designed to showcase the latest advancements in AI technology.

The Pixel 9 series, although a minor player in global smartphone sales, is a crucial platform for Google to demonstrate the cutting-edge capabilities of its Android operating system. With AI at the core of its strategy, Google is positioning the Pixel 9 phones as vessels for the transformative potential of AI, a trend that is expected to revolutionize the way people interact with technology.

Rick Osterloh, Google’s senior vice president overseeing the Pixel phones, emphasized the company’s commitment to AI, stating, “We are obsessed with the idea that AI can make life easier and more productive for people.” This echoes the narrative Apple is likely to push when it unveils its iPhone 16, which is also expected to feature advanced AI capabilities.

The Pixel 9 lineup will be the first to fully integrate Google’s Gemini AI technology, designed to enhance user experience through more natural, conversational interactions. The Gemini assistant, which features 10 different human-like voices, can perform a wide array of tasks, particularly if users allow access to their emails and documents.

In an on-stage demonstration, the Gemini assistant showcased its ability to generate creative ideas and even analyze images, although it did experience some hiccups when asked to identify a concert poster for singer Sabrina Carpenter.

To support these AI-driven features, Google has equipped the Pixel 9 with a special chip that enables many AI processes to be handled directly on the device. This not only improves performance but also enhances user privacy and security by reducing the need to send data to remote servers.

Google’s aggressive push into AI with the Pixel 9 comes as Apple prepares to unveil its iPhone 16, which is expected to feature its own AI advancements. However, Google’s decision to offer a one-year free subscription to its advanced Gemini Assistant, valued at $240, may pressure Apple to reconsider any plans to charge for its AI services.

The standard Pixel 9 will be priced at $800, a $100 increase from last year, while the Pixel 9 Pro will range between $1,000 and $1,100, depending on the model. Google also announced the next iteration of its foldable Pixel phone, priced at $1,800.

In addition to the new Pixel phones, Google also revealed updates to its Pixel Watch and wireless earbuds, directly challenging Apple’s dominance in the wearable tech market. These products, like the Pixel 9, are designed to integrate seamlessly with Google’s AI-driven ecosystem.

Google’s event took place against the backdrop of a significant legal challenge, with a judge recently ruling that its search engine constitutes an illegal monopoly. This ruling could lead to further court proceedings that may force Google to make significant changes to its business practices, potentially impacting its Android software or other key components of its $2 trillion empire.

Despite these legal hurdles, Google is pressing forward with its vision of an AI-powered future, using its latest devices to showcase what it believes will be the next big leap in technology. As the battle for AI supremacy heats up, consumers can expect both Google and Apple to push the boundaries of what their devices can do, making the choice between them more compelling than ever.

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