According to recent reports, iPhone creator Apple is planning to launch its very own mobile game subscription service, which has been described as a "Netflix of games." However, analysts say that the iOS platform holder should think beyond this and should splash some major cash to beef up its gaming plans further.

In a note published by J.P. Morgan analyst Samik Chatterjee earlier today, it was suggested that Apple should buy Activision Blizzard, the publisher of Call of Duty and the parent company of (Overwatch and World of Warcraft developer) Blizzard Entertainment. The analyst said that Apple should make strategic acquisitions in three key industries in an effort to offset slowing sales of its iPhones - gaming was one of these industries.

Chatterjee also pointed to video streaming platform Netflix as a potential acquisition target. It is a huge force in the world of TV and movie streaming and has recently expanded into gaming too. The Netflix version of Telltale's Minecraft: Story Mode released in December and it also released Bandersnatch, a choose-your-own-adventure interactive experience that played similar to an FMV game.

The analyst's note is just a suggestion but it would make considerable sense for both companies involved. Activision Blizzard is reportedly facing declining active player figures and has rolled out cost-cutting measures across its owned companies. Blizzard Entertainment is apparently paying employees to leave the company and Activision has asked it to put more effort into creating new IPs that could serve as the company's next big money maker. A buyout from Apple would at least offset revenue concerns.

Moreover, Activision Blizzard as a whole is planning to grow its mobile gaming sector more. Blizzard wants to create more mobile spin-offs of its franchises and a new Call of Duty mobile game is in the works according to job listings. Activision already owns Candy Crush Saga developer King and these efforts would build on that. A purchase from Apple could lend greater support, resources, and expertise to these efforts too.

Apple would benefit by strengthening a key area of its business. With iPhone sales slowing, the company has been working to improve its services, benefiting from the huge amounts of people within the iOS ecosystem (whether they are buying new iPhones or not). The company does make an astonishing amount of money from iOS games, taking a cut of each game and microtransaction. But in buying a game company, Apple would get the whole pie to itself instead of just cutting a slice and it could expand into console gaming as well.

Source: CNBC