In recent days. speculation has been ramping up regarding Microsoft’s interesting in making a large acquisition in the gaming arena. Part of this centers around the lack of exclusive titles for their Xbox One console.
Polygon followed up that article, looking a bit more in-depth at the various companies that might be on the radar; companies like Electronic Arts, Valve, and PUBG Corp to name a few.
IMHO, EA is a no go not only due to the potential premium, but also the fact that it may not particularly align with Microsoft’s overall core mission when it comes to gaming which is about deeper integration of its Windows 10 platform (PC) and Xbox One. Like how do you deal with EA franchises which deploy on the competition (PlayStation 4) for example when many of those properties are significant revenue generators?
This is also why I also believe that Valve is a no go (similar price premium) but also how Steam as a platform, will co-exist, supplant, or be integrated into the Xbox experience. Owning Steam would give Microsoft major control on the exclusivity angle for both PC and Xbox One. The question is would Microsoft be willing to dump their own storefront (which is abysmal compared to the user experience that Steam provides) and social networking of Xbox Live with Steam instead.
While Microsoft could own the gaming space with an acquisition of Steam, that also comes with considerable baggage (considering that it supports multiple platforms). How would they handle Mac games for example when it comes to Xbox Live integration? Initiatives like this do not happen overnight; it may take years to get the integration right.
PUBG the game is a huge wildcard right now due to its popularity (including its Xbox One exclusiveness). Microsoft may end up preferring to go the route of acquiring studios that have a hit brand/title like when they acquired Bungie for the Halo franchise and their more recent acquisition of Minecraft. This allows them direct control of those franchises. Compared to the price tag that will be associated with EA or Valve, PUBG Corporation would come at a lower cost.
PUBG Corp itself happened since this was obviously the thought process when Bluehole were tripping over themselves trying to figure out ways to milk this unexpected success. They are going to be courting potential suitors and that will include Microsoft. The biggest issue here though is corporate culture match. PUBG Corp is essentially a haphazard cobbled together entity with Korean leadership and a mix of Korean designers and European developers. An acquisition by any company would likely have it operating as an independent subsidiary (sort of like the arrangement that Blizzard Entertainment has with Activision). But there is still the underlying current and challenges involved when it comes to integrating business operations and having leadership which aren’t at odds with the corporate culture of the parent company.
A Microsft acquisition would represent a huge windfall for parent Bluehole and also be a huge payday for PUBG Corporation’s executives (and to a lesser extent, rank and file employees). The biggest obstacle I can see is Bluehole past the initial wining and dining phase. Prior to PUBG, they were a smaller studio that was relatively unknown. Most of their own acquisitions were small development studios. Now, they are in uncharted territory were this type of unexpected success can lead to hubris in terms of negotiating terms with a company like Microsoft.
This is of course all speculation at this time since it is probably still at the “feeler” stage. I would not be surprised though if one of the mandates by Bluehole is for PUBG Corp to find a suitable buyer which would finance development and/or acquisitions that are in a space they are more familiar with (that is MMO designs).
