How Will Simplygon Acquisition Facilitate Microsoft’s Strategy?

Simplygon complements Microsoft’s VR aspirations to be at the top of gaming space

Earlier in the series, we discussed how Microsoft (MSFT) aims to enhance its expertise in the 3D, gaming, and AR spaces through the acquisition of Simplygon. Despite the massive success of Pokémon Go, Nintendo’s (NTDOY) core video game business is suffering. The growing usage of smartphones as an alternative gaming platform has affected the video game business. Microsoft, Sony (SNE), and Nintendo are the leading players in the gaming space.

PCs (personal computers) continue to be the top gaming platform in terms of developer support despite consistent sluggishness in the PC market. VR is rapidly emerging as the future gaming platform.

How Will Simplygon Acquisition Facilitate Microsoft’s Strategy?

This development explains why Microsoft announced in late October 2016 that it has partnered with technology companies Dell, HP (HPQ), Lenovo (LNVGY), Asus, and Acer to release several PC-tethered VR headsets.

On its acquisition by Microsoft, Matt Connors, Simplygon’s CEO, said, “Microsoft is one of our biggest customers on the game side but we would be quite relevant to their Universal Windows Platform.”

Simplygon and Microsoft’s UWP

Microsoft is pushing for UWP (Universal Windows Platform) development to promote Windows 10 in the current app climate, which is inclined toward light, touch, and user-friendly software. Through UWP, Microsoft is encouraging developers to build Windows apps that could boost its Windows 10 mobile efforts.

With UWP, developers can write applications on Windows 10 that can run on PCs (personal computers), tablets, smartphones, game consoles, and the much-awaited augmented reality headgear, HoloLens. Recently, Microsoft announced that Windows 10 apps could run on the Xbox One. Microsoft’s UWP is the underlying software behind Xbox, HoloLens, and Surface tablets.

Simplygon’s technology will complement Microsoft’s UWP, so the company’s position in the gaming space will also improve due to increased engagement of consumers, gamers, software developers, publishers, and distributors.