In a monumental move in the gaming world, Microsoft has successfully sealed its acquisition of Activision Blizzard, a deal worth a staggering $69 billion. Taking nearly two years to finalize, this merger solidifies Microsoft’s stance in the gaming industry, catapulting them ahead of Sony to secure the position of the world’s second-largest gaming company.
What This Merger Brings to the Table
Beyond just bringing the legendary “Call of Duty” under the Xbox umbrella, the acquisition encompasses other gaming mammoths like “Overwatch 2”, “Diablo IV”, and the iconic “World of Warcraft”. This move is poised to turbocharge Microsoft’s Xbox Game Pass, enhancing its library with a series of blockbuster games. Furthermore, with renowned mobile games like “Candy Crush” and “Call of Duty Mobile” now in its portfolio, Microsoft is set to cast a wide net in the mobile gaming sector.
For the fans on the PlayStation side, a decade-long agreement ensures “Call of Duty” remains available on Sony platforms, especially its consoles Playstation family. However, future exclusives from other Activision Blizzard games might become Xbox-centric.
Behind The Scenes
The merger means an additional 10,000 members join the Microsoft gaming family. Activision Blizzard’s chief, Bobby Kotick, has confirmed he will continue his tenure, aligning with Microsoft Gaming CEO Phil Spencer, at least through 2023.
A significant shift towards a pro-union stance is evident. Microsoft, having previously affirmed its neutral stand with the Communication Workers of America, paves the way for Activision Blizzard employees to easily opt for union recognition.
A Backstory to the Merger
The initial announcement of this merger dates back to January 2022. However, it wasn’t all smooth sailing. This decision followed Activision Blizzard’s stock price tumble amidst reported internal issues and game delays.
Regulatory challenges, especially from the UK and the US, posed significant hurdles. The FTC’s attempt to stall the merger shed light on numerous industry secrets, including exclusive insights into Xbox and Sony’s operations. Still, Microsoft emerged triumphant after making specific concessions to the UK’s Competition and Markets Authority, including selling cloud gaming rights for specific Activision Blizzard games to Ubisoft.
The Path Forward
With this acquisition chapter concluded, Microsoft faces the colossal task of integrating Activision Blizzard seamlessly. Given that this publisher is nearly five times the size of Bethesda Softworks, which Microsoft acquired in 2020, this integration process is expected to be intricate.
Stay tuned with ACE Consulting Group as we continue to monitor and provide insights into these industry-shaking moves!