It wasn’t going to last forever. The boom in gaming fueled by the pandemic is coming to an end, and companies in the spacing are feeling the effects. We’re no longer cooped up as much at home, and people are rediscovering other interests, like outdoor activities and travel.

Gaming giants Microsoft, Sony and Nintendo are seeing sales declines, which naturally is affecting profits.

The video game industry, like many others, will have more uncertainty for a while as we begin to see consumers settle into new habits.

The gaming wars are heating up after the Microsoft purchase of Activision Blizzard as all the big boys realize they need a video game play.

Netflix is making it clear that they won’t be left behind:

That’s a tall task for Netflix, which is building its gaming unit from scratch. Netflix chief operating officer Greg Peters said Thursday the company plans to license “large game” intellectual property that “people will recognize” later this year. Hastings added Netflix will use its “walk, crawl, run” strategy around gaming, where it purposefully grows the business gradually to learn about user habits and use resources efficiently.

Co-chief executive officer Reed Hastings, saying that Netflix intends to “amaze” its members . . . let’s see if they meet that high standard.

Microsoft is doubling down on its huge gaming bet as it strikes a deal to acquire Activision Blizzard for $68.7 billion. CEO Satya Nadella explains that the will play a key role in the development of metaverse platforms at Microsoft. In other words, they’re not leaving this space to Meta/Facebook.

Microsoft gains iconic titles in the deal:

Microsoft is acquiring Activision, the troubled publisher of Call of Duty, World of Warcraft, and Diablo. The deal will value Activision at $68.7 billion, far in excess of the $26 billion Microsoft paid to acquire LinkedIn in 2016. It’s Microsoft’s biggest push into gaming, and the company says it will be the “third-largest gaming company by revenue, behind Tencent and Sony” once the deal closes.

Microsoft plans to add many of Activision’s games to Xbox Game Pass once the deal closes. With the acquisition of Activision, Microsoft will soon publish franchises like Warcraft, Diablo, Overwatch, Call of Duty, and Candy Crush. “Upon close, we will offer as many Activision Blizzard games as we can within Xbox Game Pass and PC Game Pass, both new titles and games from Activision Blizzard’s incredible catalog,” says Microsoft’s CEO of gaming Phil Spencer.

There have been tons of problems at Activision Blizzard regarding allegations of sexual harassment. Microsoft will have plenty to deal with through any transition. For gamers it will be interesting to see if this creative studio will thrive or wilt under the Microsoft umbrella. Nadella is an excellent CEO so their track record is improving.

Streaming powerhouse Netflix will be entering the video game business. Expect to see this in 2022 in the US as the company is already rolling this out in European markets.

Netflix has hired former Electronic Arts and Facebook executive, Mike Verdu, as vice president of game development, to lead this important strategic initiative. The company sees gaming as one of its biggest competitors, and this also offers an opportunity to differentiate itself from the likes of HBO Max.

At this time the company does not intend to charge an additional fee to access games.