Microsoft Adds Gaming Upstart To Its Portfolio

In big gaming news, Microsoft has acquired a small gaming start-up that it can add to its portfolio. This is a development company called “PlayFab”. They handle many of the live operations and other technical tasks so that those who develop games can focus more on that and less on keeping the games that they already have out there running.

PlayFab already manages a lot of the technical details for games that have a total worldwide player audience of seven hundred million players says Business Insider. This indicates that a lot of game developers trust them with even some of the most sensitive information that they possess. It is quite clear that this is a gaming start-up that will not remain just some small company for much longer. They are making big moves. Now that Microsoft owns them, the acceleration of this business is likely about to take off.

A lot of gaming is moving into the cloud. This means that it is becoming far more inter-connected, and far more reliant on the ability to play games live and compete with other players all around the world no matter where they are. Since this is what players want, it is a wise move by Microsoft to focus more energy into this aspect of the gaming world.

PC games in particular are white hot right now. It seems that just about everyone wants to take their skills to their computer and show other strangers around the world that they are in fact the best at whatever particular game it is that they want to prove their chops in. The exact game that one is playing may change from time to time, but the environment of online gaming has remained largely the same for some time now. Microsoft is simply consolidating some hold on that market.

Microsoft looking to buy Electronic Arts

There may not be a company that had a tougher year than Electronic Arts did in 2017. Does that mean the firm might be on the block? Reports began surfacing on Monday afternooon that EA might be up for sale and the company that might buy them is Microsoft.

The deal makes quite a bit of sense for both entities, which probably means it’s not going to go through. For Microsoft, it would allow them a studio that could put together quite a few Xbox only games. For EA, it would mean that they are teaming up with one of the titans of the video game world. They might also be able to repair some of the problems we’ve seen in the last few years if there was another set of eyes looking at the products EA is pushing out there and telling someone they need to be rethought.

The two firms are a couple of the biggest in the video game world. As Polygon points out, Microsoft could likely make the purchase of EA without making much of a dent into their profits. The firm that has just launched the Xbox One X is valued at somewhere in the neighborhood of $130 billion. EA, on the flipside carries a value of about $35 billion.

Those are big dollar values being through around, but in what is becoming very big video game business, it appears as though EA could be had by Microsoft for chump change. It should be pointed out that rumors about takeovers like this are almost always going strong this time of year. There are some rumblings that have made this set of rumors seem to have a bit more traction underneath them. When you’re talking about Microsoft’s cash and EA’s PR problems, a sale could indeed be on the horizon.