MORGAN STANLEY: There’s an important reason Microsoft would never buy Electronic Arts or Activision to create the ‘Netflix of video games’ (MSFT)
|10/23/2018||Posted by BusinessMediaguide.Com under General World News||
- Microsoft may be hungry for gaming content to build out its Xbox subscription service, but don’t expect to see any mega acquisitions.
- It just doesn’t make much sense economically for Microsoft to buy one of the bigger video game publishers, according to Morgan Stanley.
- In particular, Morgan Stanley analyzed what it would take for Microsoft to justify buying a hypothetical gaming company valued at $39 billion.
- Microsoft would need 100 million subscribers to justify the expense, according to the report. That’s 1/3 of the total console gaming population, and an unlikely goal.