Why should Microsoft buy Valve Software – The Motley Fool?

If you are a PC player, the chances you use are good. Microsoft (NASDAQ: MSFT) Windows as the operating system of your choice. PC game makers are primarily aimed at Windows, with alternative platforms such as MacOS and Linux at best.

That said, if you are a PC player, it is also wise to use Valve Software's Steam platform to buy and play games. Valve draws its money from Steam by taking a percentage of the revenue generated by each game sale. While this has led some major game publishers to try to create their own game distribution platforms or to enter into distribution agreements with competing digital platforms, Steam remains immensely popular and should dominate the distribution of games. PC games in the near future. .

That's exactly why I think Microsoft should buy Valve Software.

Accelerate Microsoft's ambitions for PC gaming

Microsoft is more and more interested in PC gaming over the years. In fact, the software giant recently announced that it was bringing a lot of its Halo games – titles largely exclusive to the company's successful Xbox platform – the Windows platform. On top of that, Microsoft takes another user-friendly step for PC gamers by making titles available both via its own Microsoft Store and Valve's Steam software.

However, Microsoft's ambitions for PC gaming could be totally out of date if it buys Steam. Not only would the company have access to the digital distribution platform chosen by PC gamers, but also the ability to effectively monetize this customer base, but it would also get an incredible number of game franchises.

Valve is an extremely powerful company (which makes me think that such an acquisition would be far from cheap), but under Microsoft – which has virtually unlimited financial resources and brand strength – the assets of the company could be brought to a new level.

Indeed, Valve's own Dota 2 and Counter Strike: World Offensive The games are two of the three most played games on Steam. Having these franchises on Microsoft's belt could give a boost to its PC gaming credit. In addition to that, Valve owns the Half life and Portal franchises – probably two of the most popular PC gaming franchises of all time. Unfortunately, under Valve, these franchises have been dormant for years, but with Microsoft's resources, they could be revitalized.

In fact, if Microsoft had to buy Valve Software and publicly commit to accept Half life and Portal titles (players are waiting for a continuation of Half Life 2: Episode 2, a game that ended with a cliffhanger for over a decade), which could result in a large influx of goodwill from the PC gamer community.

Take away food

In the end, Microsoft is smart to double PC gaming in general. This is a large and growing market that depends largely on the Windows operating system. If Microsoft bought Valve Software, it would become not only the first PC game distributor virtually overnight, but would also become the owner of some of the world's most popular PC gaming games and franchises on which it could be sold. support significantly.

Teresa Kersten, a LinkedIn employee, a subsidiary of Microsoft, is a board member of The Motley Fool. Ashraf Eassa does not hold any of the shares mentioned. The Motley Fool owns shares of Microsoft. Motley Fool has a disclosure policy.