The term “metaverse” became the technology buzzword of the year in 2021 as technology companies big and small spend billions to position themselves for the internet of the future. 

One company, social media giant Facebook, even renamed itself Meta Platforms, staking its future on this trend. I wonder how much this might be due to bad press for the company and slowing social media growth.

And Meta Platforms isn’t the only company making a push to capitalize on the growing popularity of the metaverse trend. The latest update involves one of tech's biggest names and a gaming company laden with controversy. 

Today, tech giant Microsoft Corp. (NASDAQ: MSFT) made another metaverse move by purchasing Activision Blizzard, Inc. (NASDAQ: ATVI) for about $70 billion. 

This acquisition beefs up Microsoft's gaming franchise, which currently makes up about 6% of its total business. 

Satya Nadella, Microsoft’s chair, and chief executive said today in a statement that “gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms.” 

Activision Blizzard shares are skyrocketing today on the news, shares are up nearly 27% as I write this update. 

Gaming will play a huge role in the metaverse, and Microsoft is now looking to plant a flag firmly in that category. With Activision Blizzard in its wheelhouse, Microsoft is the third-largest gaming company by revenue, sitting right behind Tencent and Sony. 

“We’re investing deeply in world-class content, community, and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive, and accessible to all,” continued Nadella in the statement from above. 

Of course, this is just another addition to Microsoft’s long list of metaverse assets. It feels like the reality of the metaverse is getting closer and closer with each passing week so make sure you stay tuned in to Technology Profits Daily to keep up to date on any major developments.

To a bright future,

Ray Blanco
Chief Technology Expert, Technology Profits Daily
AskRay@StPaulResearch.com