Xbox and PlayStation are poised to change the landscape of the gaming industry as we know it, and their closest competitors are going to be left in the dust. But just how big will the change be, exactly, especially with their recent multi-billion-dollar acquisitions?
Game enthusiasts and industry personnel walk between the Microsoft XBox and the Sony PlayStation exhibits at the Annual Gaming Industry Conference E3 at the Los Angeles Convention Center on June 16, 2015 in Los Angeles, California. The Los Angeles Convention Center will be hosting the annual Electronic Entertainment Expo (E3) which focuses on gaming systems and interactive entertainment, featuring introductions to new products and technologies.
It's hard to say early on, considering that both deals (Microsoft's Activision Blizzard buyout and Sony's recent purchase of former "Halo" dev Bungie) are not scheduled to close and be finalized anytime soon. But assuming that they will, here's what analysts think.
Xbox And PlayStation Are 'Consolidating' The Industry
According to Polygon, what's happening right now is an industry consolidation being spearheaded by both Sony and Microsoft. This kind of phenomena is not new to the business landscape, and they're feeling that with these acquisitions will come new ones down the line.
Consider Microsoft's buyout of Activision Blizzard, for one. They announced that they'll be purchasing the embattled developer/publisher for $68.7 billion. This deal is considered the largest in all of gaming, but this didn't even put much of a dent in Microsoft's pockets.
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According to CNN Business, Microsoft was sitting on a cash pile worth $130.6 billion at the end of September, meaning they only spent just over half in the ActiBlizz deal. What this means is that they still have a ton of money left to continue their acquisition spree-assuming that regulators will approve the ActiBlizz deal in the first place.
As for Sony, they're in a similar situation, more or less. Compared to Microsoft's ActiBlizz purchase, they got the original developer of "Halo," Bungie, for a relative bargain-$3.6 billion. What this could mean is that they still could go on an acquisition spree of their own, which was even confirmed by CEO Jim Ryan: "With PlayStation, we have a long way to go. We are by no means done."
CHIBA, JAPAN - SEPTEMBER 20: An attendee walks past the PlayStation logo in the Sony Interactive Entertainment booth during the Tokyo Game Show 2018 on September 20, 2018 in Chiba, Japan. The Tokyo Game Show is held from September 20 to 23, 2018.
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Which IPs Will Be Exclusive With Whom?
In the wake of their multi-billion-dollar acquisitions, both Sony and Microsoft cleared the air about which game franchises will be exclusive to PlayStation or Xbox.
On the side of Xbox, they made it clear that they want to keep ActiBlizz's biggest multi-platform IPs (i.e. "Call Of Duty") the way they are. In simpler terms, these games won't be Xbox exclusives anytime soon, as reported by Forbes. As for other games, well, their potential exclusivity remains up in the air.
Still, ActiBlizz being under Microsoft's wing could still mean that any future releases will be theirs and theirs alone-exclusive to Xbox consoles and PC. That old joke which said "Xbox has no games" doesn't mean anything anymore.
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As for PlayStation, their Bungie deal was met with a bit of skepticism. That is because Bungie themselves made it clear that all of their games (current and future) are NOT going to be PlayStation exclusives anytime soon, and that they're going to retain full independence and creative freedom, despite being officially under the Sony banner.
YouTube channel SkillUp shared their thoughts on the Sony x Bungie merger, and they presented some valid points. By having the former "Halo" dev under their wing, Sony has a chance to beef up their catalog of games that have been mostly dominated by story-heavy, single-player offerings.
What this means is that Bungie's vast experience with creating massively multiplayer titles could shake Sony's offerings up in a major way-bringing them something that they've never had before.
Either way, both Xbox and PlayStation are in for an industry shakeup of their own making, and nothing is stopping them.
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Written by RJ Pierce
