In a recent report by Newzoo, it was suggested that if Microsoft had acquired Activision Blizzard earlier, the combined strength of both companies would have propelled Microsoft Gaming’s game software revenue above Sony’s. This potential development could have placed Xbox ahead of PlayStation in the gaming charts for the first time in years, if not ever.
Currently, Microsoft holds the fourth position in the gaming industry for H1 of 2023, with Tencent, Sony, and Apple leading the way in first, second, and third place, respectively. Activision Blizzard, on the other hand, secured the seventh spot. However, if the crucial acquisition had taken place last year, Microsoft Gaming would have claimed second place, surpassing Sony and their renowned PlayStation brand.
A subsequent report from Windows Central stated that this would mark the first time in history that Microsoft outpaced Sony in gaming. Nevertheless, Tencent, an impressive Chinese organization, still sits far ahead, making it unlikely that anyone will challenge its dominance anytime soon.
Tencent holds a monumental presence with numerous brands and investments, including ownership of iconic labels like Riot Games. Moreover, they possess a significant stronghold in the mobile gaming sector, which happens to be the most lucrative gaming market, constituting approximately 49% of all gaming revenue.
Based on Newzoo’s report, Tencent raked in a staggering $15.4 billion in game revenues during H1 of 2023. Sony, along with the PlayStation brand, amassed around $8.08 billion, while Microsoft exceeded $6 billion.
The crux of the matter lies in the fact that the amalgamation of Activision Blizzard and Microsoft’s game revenues would have propelled Microsoft Gaming to over $10.4 billion in H1 2023, as indicated by Newzoo’s graph. This hypothetical scenario would have easily overshadowed Sony’s figures.