Microsoft’s Activision Blizzard Acquisition: A Done Deal and What It Means

Yes, Microsoft did, in fact, buy Activision Blizzard. After a grueling regulatory review that spanned continents and tested the patience of even the most seasoned dealmakers, the acquisition finally closed on Friday, October 13th, marking a monumental shift in the gaming landscape. This $69 billion deal is the largest acquisition in video game history, and its implications will be felt for years to come by gamers, developers, and the industry as a whole.

The Rocky Road to Acquisition

The path to Microsoft’s acquisition of Activision Blizzard was anything but smooth. Antitrust regulators around the globe, including those in the United States, the United Kingdom, and the European Union, scrutinized the deal intensely, fearing that it would give Microsoft an unfair advantage in the gaming market.

Regulatory Hurdles: The UK’s Competition and Markets Authority (CMA) initially blocked the acquisition, citing concerns about the impact on cloud gaming competition. Microsoft eventually restructured the deal to address these concerns, offering concessions to cloud gaming providers. This revised proposal proved sufficient, and the CMA ultimately cleared the acquisition. In the U.S., a district judge ruled favorably for Microsoft after hearing arguments from the Federal Trade Commission (FTC) attempting to block the merger.
Competitive Concerns: Regulators feared that Microsoft could make Activision Blizzard’s popular games, such as Call of Duty, exclusive to its Xbox platform, harming competition. Microsoft repeatedly assured regulators and the public that it would not do so.

What Does Microsoft Now Own?

With the acquisition complete, Microsoft now owns a treasure trove of iconic gaming franchises and studios:

Activision: Known for the blockbuster Call of Duty franchise, as well as other popular titles.
Blizzard Entertainment: The studio behind gaming giants like Overwatch, Diablo, Warcraft, and Starcraft.
King: The mobile gaming powerhouse responsible for the wildly successful Candy Crush saga.

This gives Microsoft an unparalleled portfolio of games, spanning multiple genres and platforms, and significantly strengthens its position in the global gaming market.

Impact on Gamers

The acquisition’s impact on gamers remains to be seen, but here are a few potential implications:

Game Pass: While some speculated about an immediate influx of Activision Blizzard games into Xbox Game Pass, Microsoft has stated that this won’t happen until 2024. This means subscribers will have to wait a while longer to access titles like Call of Duty and Diablo through the subscription service.
Exclusivity: Microsoft has pledged to keep Call of Duty multi-platform, meaning it will still be available on PlayStation and other platforms. However, there may be exclusive content or features for Xbox players.
New Games: The acquisition could lead to new collaborations between Microsoft’s and Activision Blizzard’s studios, potentially resulting in innovative and exciting new games.

The Future of Gaming

The Microsoft-Activision Blizzard deal marks a turning point in the gaming industry. It signals a move towards consolidation, with larger companies acquiring smaller studios to gain a competitive edge. It also highlights the growing importance of subscription services like Game Pass and cloud gaming in the future of gaming. The acquisition provides Microsoft with enormous IP and also access to talent. The Games Learning Society emphasizes the importance of understanding the social and educational impact of games, and this acquisition further underscores the need for critical analysis of the evolving gaming landscape. You can learn more at GamesLearningSociety.org.

Frequently Asked Questions (FAQs)

Here are 15 frequently asked questions to further clarify the details of the Microsoft-Activision Blizzard acquisition:

1. Is it true that Microsoft bought Activision?

Yes, Microsoft completed its acquisition of Activision Blizzard on Friday, October 13th. It’s now officially part of the Xbox family.

2. Did Microsoft close the Activision deal?

Yes, the deal is closed. The final regulatory hurdle was cleared, allowing Microsoft to finalize the acquisition.

3. Did Microsoft buy Call of Duty?

Indirectly, yes. Microsoft bought Activision Blizzard, and Activision owns the Call of Duty franchise. Therefore, Microsoft now owns Call of Duty.

4. Will COD be Xbox exclusive?

Microsoft has stated that Call of Duty will not be made exclusive to the Xbox platform. It will continue to be available on other platforms like PlayStation.

5. Will COD be on Game Pass?

Not immediately. Microsoft has stated that Activision Blizzard games, including Call of Duty, won’t be available on Xbox Game Pass until 2024.

6. Who owns COD now?

Microsoft, through its ownership of Activision Blizzard, now owns the Call of Duty franchise.

7. What happens to my Activision stock when Microsoft buys it?

If you owned Activision Blizzard stock, each of your shares was exchanged for $95.00 in cash. You no longer own stock in Activision Blizzard.

8. Does Xbox own Activision now?

Yes, Xbox, which is owned by Microsoft, now owns Activision Blizzard.

9. What does Xbox own now that it acquired Activision Blizzard?

Xbox now owns Activision Blizzard and its intellectual property, including franchises like:

Call of Duty
Overwatch
Diablo
Warcraft
Starcraft
Guitar Hero
Crash Bandicoot
Spyro

10. Does Activision own King (Candy Crush)?

King was acquired by Activision Blizzard in 2016. So, Microsoft indirectly owns King now.

11. Who owns Activision today?

Microsoft owns Activision through the acquisition.

12. Who is the CEO of COD?

The CEO of Activision Blizzard is Bobby Kotick. It remains to be seen if his role will change under Microsoft ownership.

13. Who makes COD now?

Call of Duty: Modern Warfare III is published by Activision. Development for the game is led by Sledgehammer Games, in partnership with Infinity Ward.

14. Is Blizzard coming to Xbox?

Blizzard Entertainment is already part of the Xbox family, now that the acquisition is complete. However, their games won’t be available on Xbox Game Pass until 2024.

15. Who owns Candy Crush?

Microsoft now indirectly owns Candy Crush through its ownership of Activision Blizzard, which acquired King, the maker of Candy Crush, in 2016.

This acquisition reshapes the power dynamics within the gaming world, and while the long-term consequences are still unfolding, one thing is certain: Microsoft’s acquisition of Activision Blizzard is a game-changer.

Did Microsoft actually buy Activision?