Industry experts weigh in on Activision Blizzard’s King acquisition

    
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If you’re still trying to wrap your head around Activision Blizzard’s stunning purchase of Candy Crush developer King for $5.9 billion, trust us, you’re far from alone.

Over the past day, several industry analysts have weighed in on the business move, with many (but not all) of them saying that it was a bold but smart move for the company. SuperData analyst Joost van Dreunen noted that King was a “key acquisition target” for Asian publishers looking to expand in the west and that Activision’s purchase would gain a mobile division for the company while denying King to its competitors.

Other analysts gave positive outlooks based on the facts that that Candy Crush has raised $4 billion to date and that King has access to an enormous pool of casual gamers.

Of course, what’s worked for King in the past might not in the future. One analyst said that Activision Blizzard might have just purchased a company that’s already peaked and headed downhill.

Activision Blizzard CEO Bobby Kotick denied that King is a “one-trick pony,” saying, “With the introduction of high-quality mobile devices, we’re looking at everybody being a consumer. And one of the things I love about King is 60 percent of their consumer base is female. There are more opportunities now than we’ve ever had before.”

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AGx
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AGx

In all honesty the only thing that bugs me about this is that Candy Crush is profitable, not JUST because it’s fun but because that fun is locked behind ridiculous difficulty spikes that people are willing to pay to get past. I don’t hate micro-transactions, I just hate THESE TYPES of micro-transactions. When games are strapped with artificial difficulty with the intent of selling you something to make it a little easier. This purchase basically validates that business model and I’m afraid we’ll start to see it more and more. Micro-transactions have already bled their way into console games, I don’t see this type of thing being too far behind.

AGx
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AGx

Gadgets4G They shop might have been little but they were filling the gap left by a massively popular title: Sim City. That game had a huge fan-base that had it’s eyes on Skylines. With Sim City all but dead, Skylines pretty much had a built in fan-base. Anything King makes they’ll likely have to earn.

jasonalilli
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jasonalilli

McGuffn Darthbawl Rozyn I’d totally play that.

SallyBowls1
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SallyBowls1

Armsbend Modrain Sorenthaz Yep. Although I think luck and random chance plays a bigger part than the winners admit so I might go with “if they saw value there is a very reasonable expectation of value.”

Flimflamberge
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Flimflamberge

The closest parallel to this I can think of is when EA acquired Popcap, where were the giants of casual games at the time. That has turned out kinda mediocre.

BKone
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BKone

DugFromTheEarth

enamelizer
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enamelizer

Activision is about to learn a very expensive lesson in mobile by buying “new Zygna” at it’s very peak.

DugFromTheEarth
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DugFromTheEarth

I get the feeling this is the general response when anyone at Blizzard reads the any current news titled:
“ACTIVISION BLIZZARD’S KING ACQUISITION”

However, im sure its quite the opposite for anyone working directly for activision

McGuffn
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McGuffn

Darthbawl Rozyn Muradin Bronzebeard and Elsa from Frozen team up to reclaim Northrend from Lich King Mickey.

Armsbend
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Armsbend

Modrain Sorenthaz King has 4 games on Apple’s top 50 revenue list.  Two in the top 5.  ActiBlizzard brass are smarter than anyone who has ever posted on these forums – if they saw value there is value.