Activision and Vivendi-owned Blizzard, two juggernauts in the gaming business, are merging in a deal worth $18.8 billion.

The two entities are calling the results of the merger "the world's most profitable games business," according to BBC News. The lovechild of this fusion will be called Activision Blizzard.

Blizzard is responsible for World of Warcraft, an MMO with some 9 million subscribers online, making it the biggest player in online gaming. Activision is active in consoles, having launched hits like Guitar Hero and Marvel-themed games on the Xbox 360, Nintendo Wii, and the Playstation 3. It recently liaised with Discovery to build animal-themed games.

A recent study suggested online games would generate one-third of gaming revenue by 2011. Activision Blizzard is expected to cash in on this prediction; back in February, Blizzard itself said PCs would make gaming consoles obsolete.

More...