Sony PlayStation’s next CEO will have hard decisions to make: compete against a resurgent multiplatform Microsoft, or retreat and defend an increasingly rickety PlayStation console model.

New gaming hardware will have an outsize influence in the year ahead, giving gamers unprecedented choice, starting with XR headsets and continuing to a likely new Nintendo Switch.

YouTube’s foray into browser-based games will be the service to watch in 2024. If successful, streaming services, including Netflix, will be on track to become heavyweight game platforms.

The EU's approval of the Microsoft acquisition of Activision Blizzard enforces expansive pro-consumer remedies that are in stark contrast to the 'hard no' CMA decision in the UK.

Cloud gaming remains the wedge issue in a global standoff amongst regulators over reining in Microsoft and other big gaming platforms.

The overall deal is still in considerable, possibly terminal, trouble with the UK appeal and US lawsuit still to be resolved, and the FTC hearing due in August.

The games industry, with the potential to become the world’s largest media and entertainment sector by revenue, is undergoing profound transformation.

The consolidation of major developers is a response to a revenue model pivoting toward subscription, with direct consequences for those already in the subscription space: film, TV and music.

A technology-led creative medium, with an audience approaching three billion gamers, is seeing its franchises become more valuable and useful than ever.

Microsoft’s planned acquisition of Activision Blizzard is in trouble. US, UK, and European regulators may make the deal impossible for Microsoft—and a disaster for Activision and the wider industry. 

Sony’s late improvement in PlayStation 5 sales is only just enough to reach its target numbers for the year. It needs a more dynamic approach to a rapidly changing industry, and a less dogmatic message to consumers and regulators. 

Netflix Games is more than a trial—it’s on track to become a major games platform. 

Sports orgs are looking for ways to engage their total, global fanbase, leading them to explore virtual interactive sports experiences.

Sport is well-placed to overcome many of the obstacles in the way of the metaverse. In particular, many of the asset development and experience design issues are much closer to being solved than in other verticals.

There are different routes to a true sports metaverse, with the most promising being expanding existing sports simulation games. Crypto, NFTs, and social gaming platforms are largely distractions.

With major studios arguably over-indexed on SVOD, the stickier experiences of interactive entertainment and the metaverse will eventually form a critical pillar of studio D2C strategy, boosting subscription services and tying in closely with consumer products and theme parks.

Disney’s appointment of a Chief Metaverse Officer is good first step, demonstrating a strategic interest in the space. But other major studios remain cautious and distracted, with limited capability beyond licensing to engage in the metaverse for the next 24 months and possibly longer.

Meta will need to provide a strong guiding hand creatively and technically to ensure its new partnership with NBCUniversal is a success, and to evangelise the metaverse and its revenue model across the Hollywood studio content space.

The pandemic years boosted many businesses selling services on subscription in the UK: work-from-home gave people more time and money to widen the services they enjoyed in the home, such as gaming, entertainment and music, also boosting engagement with trusted news

The cost-of-living crisis dented the number of subscribers to OTT SVOD and news services in Q2 2022. Broadband and mobile are must-have; bundles of services (e.g. Sky’s pay-TV and broadband or mobile) are more resilient; yearly and multi-year contracts prevent churn relative to monthly contracts; and services that cater to passions (e.g. football) are always need-to-have

Subscription (or supporter) media and news services reaped the demand for trusted news through the pandemic, but now face a tough challenge to their toplines from the economic downturn—and also to transition to a sustainable business model for media audiences, while advertisers are also feeling the heat

The 'enterprise metaverse' is best described as the next generation of communications, productivity, and collaboration tools—with VR/AR the centerpiece of the experience. Big tech is investing billions to bring it to market quickly

Quest 2 VR headsets by Meta have changed the cost equation for VR deployment in enterprise—low-cost headsets already have enterprise demand outstripping supply globally

Microsoft and Meta are closely aligned and co-operating, but Meta has its sights on its own high-value commercial customers and can expect incumbents to fight to retain them

Microsoft’s acquisition of Activision Blizzard is industry transforming—accelerating the momentum toward global subscription gaming across all devices and becoming an entertainment IP powerhouse.

Activision’s ‘toxic culture’ distress was acute and couldn’t be solved—Microsoft will (and should) clean up a tarnished organisation. The troubles had hammered Activision’s share price, allowing Microsoft to pick up world-class IP at a bargain relative to year-ago prices.

Sony faces a harsh reckoning on its long-term strategy for PlayStation, while EA and Ubisoft have become desirable acquisition targets.

Ongoing supply difficulties for PlayStation and Xbox through 2022 and beyond will result in the install base for the generation being permanently impacted. It raises the question: if you can’t buy a console are they even relevant?

VR will stage a comeback this year, as Quest 2 has its highest sales ever, the category will find new appeal from game (and metaverse) developers. If a rumoured Apple VR/AR headset eventuates, expect white-hot interest

Netflix will make strides in its games service―but mostly behind the scenes to deliver a once in a decade transformation of the industry. Don’t rule out a critical and exclusive mobile hit