Last week, Bloomberg It is reported that Microsoft is negotiating to spend more than $ 10 billion, including the gaming chat app Discord.
Although no deal has been reached yet, people familiar with the matter said that Discord has reached Microsoft and Microsoft is now in the race to buy the company, among other potential buyers. Reportedly, Discord has held discussions with Epic Games and Amazon in the past.
We reached out to analysts at CCS Insight and Futuresource Consulting to learn more about what Microsoft might mean for sales.
What can Microsoft do with Disk?
According to Principal Analyst for Workplace Transformation at CCS Insight Angela Ashden, Microsoft’s interest stems from a desire to add a large consumer-oriented community or asset to its portfolio.
“While it is an unprecedented presence in the business sector, it lacks the consumer reach of competitors such as Google and AWS, and this credibility to enable it to win big deals with major brands facing drastic changes in consumer behavior. Is extremely important ”, Ashendin said.
Microsoft will help a large community of active users reach their consumers to match their competitors.
“Futured has a huge monthly active user base of approximately 150m users and serves as a meeting place for Twitch as well as the gaming community”, said research analyst at Futuresource Consulting, Morris Garrard.
“Not only will Microsoft benefit from membership of the platform, but it will also gain access to user data. This will help increase Microsoft’s reach within the gaming community and perhaps leverage the service to develop more targeted gaming-related products and services ”.
So, what changes can users see?
“A possible result from the merger could be the bundling of Discord’s Nitro membership with other Microsoft services as a game pass, helping the company strengthen its grip on the gaming community and add yet more pressure on Sony in the future “, Said Garrard.
“, Although a concern for gamers may be the discontinuation of Microsoft’s recent mixer video streaming platform, perhaps it highlights a tendency to over-expand, which could ultimately harm Discord’s user experience”.
Microsoft will join other collaboration apps including the Microsoft team, increasing daily active users by more than 50% in 2020 The ledge), No doubt in part due to the ongoing epidemic. Disk can be used to bring a fresh perspective to an app like Teams and the way they are used to collaborate.
“Certainly the rumors also raise questions about the generalities between Discord and Microsoft teams, and how this ongoing collaboration will affect the company’s strategy in technology”, Ashendin said.
“Although they target different audiences, there is a lot of overlap in capacity. However, Discord brings a more modern and innovative approach to what online collaboration and interaction is for the digital native generation. Microsoft always recognizes innovations in the market And there has been a company to include them in their solution, and a rebate acquisition is another potential opportunity. While on the surface it appears to be a potential gaming acquisition, I think it would be too much for Microsoft to make such a deal. There is likely to be a more widespread impact. “
Should PlayStation gamers be worried?
The good news for PlayStation users is that Garrard does not see Microsoft abandoning an Xbox or Windows 10-exclusive service.
“While Microsoft would likely encourage Xbox consoles or Windows 10 gaming PCs to abandon and increase potential bundling opportunities, it would deprive PlayStation users of access to nearly 100 meters”, Garrard said, adding that the PS4 and PS5 The active install base of users hit more than 90 million in 2020.
“It could actually be beneficial for Microsoft to allow PS users access, in bid to do well for their arch-rival to gain more user data on games and services”.
In fact, with Sony’s recent success, the PlayStation creator has no need to worry right now.
“The PS5 is still enjoying additional demand and the console is expected to outsell the PS4 in its lifetime as well”, Garrard said, with PS5 forecasting 120 million units expected to be sold between 2020 and 2027.
“However, in the long run, Sony is in danger of being acquired by Microsoft. The expected trajectory of Microsoft’s gaming proposal would have seen the company embrace new-age gaming developments such as cloud gaming to a much greater extent with Sony. The gaming platform The lines between are becoming increasingly blurred and integration with Microsoft’s Xbox and its extensive service portfolio with Windows Windows installed base appears to be a significant advantage for the US company long-term gaming dominance.
Should we expect more acquisitions from Microsoft?
“What Does Discord Make Discussions Interesting” This is a direct link to Microsoft’s existing Xbox gaming business, with gamers making up most of Discord’s userbase.
“The company has gradually built up its investment in the gaming industry for some time – from the acquisition of Gaming Content Studio, from Minecraft / Mojang in 2014 to Bethesda / ZeniMax Media this year. However, with its chat / voice / video platform, Discord is common with Microsoft’s broad portfolio of applications.
These acquisitions are what Sony needs to keep up with Sony in the gaming market.
“Microsoft is still overtaking Sony in the console landscape, although the company is in a position to dominate the gaming ecosystem in Long Run.”
“Whenever Sony is doubling down on its first-party exclusive content strategy, Microsoft is investing in growing its broader subsidiary ecosystem, so looking at the gaming community (especially the downfall of the streaming platform) from the Discord acquisition, Microsoft Will go a long way in broadening the reach of. Mixer) ”.
Garrard hopes to get more publishers in the future, to partner with companies to optimize gaming on more devices, or possibly to broaden its gaming proposition in the future by controlling the hardware supply chain Can be continued.
For more information on Discord, be sure to check out our guide on how to create a Discord bot. For advice on consoles, visit our list of the best game consoles and best gaming laptops.