Vivendi in Talks to Sell Game Unit to Microsoft. Vivendi Universal is holding talks with Microsoft about the sale of its video games business. By Suzanne Kapner and Andrew Ross Sorkin. [New York Times: Technology]
"Microsoft doesn't want to leave the development of video games for the Xbox in someone else's hands," said Jeff Van Rhee, director for enterprise software research at Invest, an investment bank. "Buying Vivendi lets Microsoft control its own destiny."
There is going to be a great deal of consolidation in the video game industry in the coming years. Microsoft has been aggressively acquiring game developers such as Rare, Bungie and now Vivendi. I believe that Microsoft's aggressive policy towards the acquisition developers is going to strongly enhance its position when the next generation of games systems comes on the market in '05.
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