Microsoft's acquisition of Blizzard was blocked by British regulators, and the out-of-control cost of game development caused concern in the industry.
CTOnews.com, May 2 (Xinhua) Microsoft plans to buy gaming giant Blizzard Entertainment for $68 billion (CTOnews.com Note: about 471.24 billion yuan), but the deal has been opposed by the British Competition and Market Authority (CMA). In a 418-page report, CMA details its research and reasons, including an important argument that the current cost of game development is already unbearably high, and that Microsoft's acquisition will further intensify market monopoly and weaken competition.
The report cites research by IDG, a market analysis firm, which expects the development budget of Blockbuster Game to grow from an average of $50 million to $150 million in previous consoles to more than $200m in the next few years. In 2014, the figure was only about $60 million. The report also quotes Blizzard's assessment of its flagship call of Duty: "We have to produce so much content for call of Duty that we can no longer rely on a major studio." now that we need nearly 1.5 major studios a year to produce call of Duty, this pressure forces us to use outsourcing more and more, and I don't think that will change any time soon. "
In addition to Blizzard, other game publishers have also said that the development costs of their popular game series are on the rise. Some of the series have even exceeded the development budget of $300 million, and future masterpieces such as the next generation of Grand Theft Auto are expected to cost $250 million or more. One of the publishers revealed that its most expensive game development costs $660 million, while the marketing budget is as high as $550 million.
CMA believes that these figures show that it is very difficult for other companies to produce games that can replace call of Duty in the short term, so Microsoft's acquisition will hurt consumers and competitors. But it also reflects that the development of blockbuster games has become unsustainable, and because blockbuster games are expensive and time-consuming, as well as facing huge market risks and player demand, game publishers have to continue to rely on their most trusted IP. Ubisoft has said publicly that it wants to invest more in series such as Assassin's Creed and isolated Island, while Sony fans are still waiting for a new IP after the mainframe generation has passed.
