What does Microsoft's deal with Activision mean for Sony, and for you?

If Microsoft's $69 billion deal to buy Activision Blizzard gets approved by regulators, it will permanently change the gaming industry. Even before the Activision offer, Microsoft was copying Netflix's strategy of amassing original content to entice subscribers to pay for access to its Game Pass streaming service.To that end, Microsoft has engaged in a string of major acquisitions. Activision gives Microsoft another 9 game developers, such as including Treyarch Games, Infinity Ward, and Blizzard Entertainment. Game Pass has more than 25 million subscribers, up from 10 million subscribers in April 2020.Microsoft has made it clear that it intends to bring as many Activision Blizzard games as possible to Game Pass to keep that number growing. If even a fraction of Activision Blizzard's 400 million monthly active users purchase a Game Pass subscription, Microsoft will leap ahead in the game-streaming race.Microsoft's mobile ambitionsMicrosoft also wants to intertwine the worlds of consoles, PCs, and mobile devices to allow gamers to play anywhere. Sony customers may now wonder if buying their kids a $500 Playstation 5 to play the handful of exclusive games Sony produces every year is really a better deal than paying $300 for an Xbox Series S that their kid can play hundreds of Game Pass games on.Still, it's unlikely Microsoft will prevent gamers from playing Call of Duty on a Playstation anytime soon (more on that below). In an employee FAQ regarding the acquisition filed with the SEC, when asked how the deal would affect existing agreements with partners like Sony, Apple, and Google, Activision Blizzard stated it will "honor all existing commitments post close."  "Activision Blizzard's games exist on a variety of platforms today, and we plan to continue supporting those communities moving forward," Microsoft added. First, regulatory hurdles may crop up if Microsoft tries to yank all Activision Blizzard games off of Playstation consoles.