The popular Michael Pachter is confident that the operation will be carried out without antitrust investigations.
Plans to buy Activision-Blizzard by Microsoft were announced in January, initiating one of the largest operations in the history of the video game with consequences today that we have not yet fully seen. But that does not mean that analysts do not want to predict the future. That’s the case for Michael Patcher of Wedbush Securities, who expects Xbox Game Pass to add up to 200 million subscribers as long as the transaction goes through.
At the beginning of the year Xbox Game Pass had 25 million subscribers“Microsoft had a vision a few years ago that I thought was stupid: to create a subscription service and have everyone pay for their right to play, but they just didn’t have games,” Patcher reminisces. However, he adds, then the Redmond giant embarked on a buying spree, snapping up first several independent studios, then Bethesda, and now Activision-Blizzard, an industry giant. Now with so many developers and a firm commitment to the cloudthe analyst believes that Xbox Game Pass will go from 25 to 100 million.
But for this, the purchase of Activision-Blizzard by Microsoft must first be closed. What does Patcher think of the possible antitrust problems that could exist? According to him, he responds, the operation is not at risk as he does not see any legal basis on the part of the Federal Trade Commission to stop the operation. As he adds, the only problems could derive from removing all video games from competing stores, something that Phil Spencer and his team have already denied.
When will the deal close?
In this way, and if there are no shocks, the Wedbush Securities analyst expects the sale of the parents of Call of Duty and Diablo to close in January of next year. Once autumn begins, a clearer estimated date may be given.
Michael Patcher has already spoken of this operation in the past, specifically when it left Sony’s video game business with poor prospects: “PlayStation is doomed and I think it will cease to exist as we know it in about 10 years.”
More about: Xbox Game Pass, Activision Blizzard and Microsoft.