Microsoft Studios Acquisition Of EA Or Activision Would Be A Wrong Economic Decision

Three big names, Microsoft, Electronic Arts, and Activision and various rumors regarding them seem to be the highlight lately. Apparently, these rumors seem to suggest that Microsoft Studios Acquisition Of EA or Activision might happen in near future.

Now before we go any further, we would recommend you to take this with a grain of salt as these rumors are appearing out of thin air. However, if we assume this scenario to actually take place, it would not make any economic sense at all. This is what the analyst Morgan Stanley had to say.

As you may know that Microsoft has been busy acquiring various studios but smaller ones and this seems to be a good strategy for now. However, according to analyst Morgan Stanley, Microsoft Studios Acquisition Of EA or Activision would be a whole new spectrum for Microsoft it self.

He adds that it would a wrong economic decision for the company. Stanley adds,

Bottom-line — the economics of driving a strong return from such an acquisition appear challenging, Weiss said. Microsoft would have to pay for revenue streams which couldn’t be replicated post acquisition

With that put into context, Microsoft is also rumored to acquire Obsidian Entertainment. Which makes sense, however acquisition of such immense scale will definitely put Microsoft in Economic crisis. Or will it actually?

What are your thoughts if such an acquisition is to take place? Let us know in the comments below.