All software we see today in a 2D model on a flat screen with some gamification could become more 3D, and we go from gamification to gaming itself. It will happen to everything – amazon shopping, office, manufacturing, everything – everything in the real world could be managed via the virtual world, a copy or enhanced version of the real-world situations.

For example, a 3D model of a manufacturing line can be used to see what is happening on the floor and control things virtually.

This concept of mixing the real and virtual worlds is called metaverse. Microsoft is buying Activision because all software development in the future could be indistinguishable from game development.

Microsoft is hoarding the gaming talent upfront and thereby hedging against a possible evolution in this direction. With Facebook spending up to $10B to make this happen – if people adopt it – or someone solves adoption, the most significant factor, Microsoft will lose the talent competition.

This move is a hedge to protect what business software could become 3D.