In an unforeseen and stupendous deal, the producer of the sensational game “Candy Crush Saga,” King Digital Entertainment, was acquired for $5.9 billion. This price is approximately 50% more than Disney paid ($4 billion) to purchase Lucasfilm, which indicates the significance of mobile gaming. The acquisition of King Digital Entertainment by Activision Blizzard denotes a major strategic shift that reflects the huge potential as well as the global popularity of mobile games.
The rising penetration rate of smartphones in emerging markets is expected to increase mobile game revenues to nearly the same level as those from PC and console games by 2019. As such, this move positions Activision Blizzard well to take advantage of this evolving space within the gaming industry.
The Growth of Mobile Gaming
Because it is now a worldwide use due to advents in technology such as smartphones, the biggest rising segment within gaming has come to be mobile gaming. In 2019, Activision anticipates global revenues from mobile games at about $55 billion, versus the $36 billion that has been estimated for 2015. For instance, in 2019, sales for PC and console gamers are projected at $57 billion [3]. It is because it appeals to people across different demographics, hence popularizing it worldwide, where millions engage with it daily through their smartphones
Activision’s Strategic Acquisition
The strategic acquisition of King Digital Entertainment by Activision is aimed at fortifying its hold in the mobile gaming industry. By purchasing King Digital Entertainment, Activision has added “Candy Crush Saga” to its suite, giving it a tie-in to almost half a billion monthly active users and allowing it to penetrate markets dominated by smartphones.
When Activision took over King Digital Entertainment, it had plans to introduce mobile versions of games such as “Guitar Hero.” With this purchase, Activision becomes the second-largest gaming company in terms of revenue, only behind Tencent.
Potential Challenges Ahead
Nevertheless, some possible hurdles might come with this acquisition for Activision. Although ‘Hearthstone’ has been successful, Activision has not generally fared well in the mobile gaming market. Moreover, following a profit warning, King’s shares fell, raising questions about the high price paid by Activision.
James Gleitzman, together with other industry analysts, doubt whether any real synergies exist between Activision and King. It brings to mind Disney’s smooth integration of “Star Wars” across its different businesses, but whether Activision can emulate this kind of success remains uncertain.
The Future of “Candy Crush Saga” and King
The future of King Digital Entertainment (makers of the game “Candy Crush Saga”) is a mixture of opportunities and risks. Although “Candy Crush Saga” has enjoyed phenomenal success, there are doubts about whether King can make another hit game. The mobile gaming industry’s volatility is illustrated by the moderate success of “Candy Crush Soda.”
For instance, Zynga’s “FarmVille” quickly fell out of favour, only for it to be replaced by “Candy Crush Saga.” This means that since mobile games keep on changing their popularity sometimes, King should always be innovative to remain in the market.
Mobile Gaming Trends
Trends in mobile gaming have significant impacts on this market. Today, free-to-play games that rely on in-app purchases for revenue have become popular, necessitating regular updates by developers to retain players’ attention.
These trends change rapidly, and the industry must be adaptive. Anticipation and reaction to such changes will play a big role in ensuring continuous success for Activision and other mobile gaming firms.
Table: Projected Revenues for Mobile, PC, and Console Games (2015-2019)
| Year | Mobile Game Revenue | PC/Console Game Revenue |
| 2015 | $36 billion | $57 billion |
| 2016 | $40 billion | $58 billion |
| 2017 | $45 billion | $59billion |
| 2018 | $50 billion | $56 billion |
| 2019 | $55 billion | $57 billion |
Looking Ahead in Mobile Gaming
The purchase of King Digital Entertainment for $5.9 billion underscores the rising significance and worth of mobile gaming. Forecasts indicate that by 2019, mobile games will almost earn revenues equal to those of PC and console games, which are considered the key drivers in this industry.
Through such a strategic acquisition, Activision is poised to benefit from this growth curve by expanding its presence and having a stronger portfolio through “Candy Crush Saga” and King’s huge user base.
However, Activision will need to negotiate several challenges, including integrating King’s operations and keeping their games popular during a volatile market. The fate of mobile gaming lies in the ability of the industry to be innovative and quick in adapting to emerging trends. Companies have to remain ahead, continuously updating their products to meet changing gamers’ tastes.
In conclusion, The move made by Activision into mobile gaming with the acquisition of King Digital Entertainment shows a tectonic shift in how we play games now. As mobile gaming is expected to generate revenue that equals those earned from traditional PC/Console gaming, we shall see more transformations in this field since it still has room for growth.