Market Wire: November 28, 2022

This market analysis provides a snapshot of the video game industry as of late November 2022, focusing on major corporate developments, competitive dynamics in mobile gaming, and regional market trends. The primary objective is to synthesize high-level industry news, including regulatory challenges, platform strategy shifts, and performance metrics for key titles.

A significant portion of the analysis centers on Microsoft’s proposed $69 billion acquisition of Activision Blizzard. The report highlights the potential for an antitrust lawsuit from the Federal Trade Commission, noting that the acquisition is viewed as a strategic move to bolster Microsoft’s mobile gaming capabilities and challenge the Apple-Google app store duopoly. Concurrently, the analysis covers an interview with Microsoft Gaming CEO Phil Spencer, who emphasized that the company remains committed to maintaining Call of Duty on PlayStation platforms while clarifying that subscription models are intended to augment, rather than replace, traditional game ownership.

In the mobile sector, the report examines the emerging competition between Activision’s Call of Duty: Warzone Mobile and EA’s Battlefield Mobile. Warzone Mobile has demonstrated strong early momentum with over 35 million pre-registrations. Additionally, the analysis addresses the comparative growth trajectories of the Chinese and Indian gaming markets. While India is identified as a rapidly growing market, analysts suggest that it remains significantly behind China in terms of valuation and disposable income, indicating that India is unlikely to overtake China’s market position in the near term. Finally, the report notes the commercial success of Pokemon Scarlet and Violet, which achieved 10 million global sales within three days of release, outpacing the launch performance of other major console titles.