The deal has been done, you can now officially call the company Activision Blizzard. Sure, the name is sorta lame but it does cover the bases… they’re Activision and they’re Blizzard; surely neither company wanted to lose their lively hood and branding.
We’re now looking at a company that’s more powerful than Electronic Arts, surely this worries Electronic Arts a bit. However, consumers like ourselves should be cheering for more competition against the big EA, perhaps forcing them to innovate a bit more and keep competitive.
Many gamers and industry participants would love to see independent companies grab a bit of the market share and bring in new startup companies and spin-off studios. However, if there is going to be a merger at the top-tier it might as well be one that puts pressure on Electronic Arts.
“We have created the world leader in online and console games with this transaction, and the combined strengths of the two businesses offer immense growth potential,” gushed Vivendi SA CEO Jean-Bernard Levy. “I am also very confident that, with the new leadership team in place, the new entity is perfectly positioned to take advantage of these rapidly developing markets across the globe.” (gamespot)
Now, we’ll have to wait and see if the upper level management can get along in a fluid manner and keep all their projects on track. With great power comes great responsibility, they’ve got the power… are they going to be responsible with it?
This leaves Sony with some hard decisions. Restructuring can mean drastic changes that effect all their product lines. The PlayStation 3 isn’t currently a shining example of high profit margins. The console needs time to reduce its overall cost, chip sizes and bring profitability. Is it in danger?