Did Microsoft Buy Activision Yet? The Gaming World Responds
Yes, the Microsoft acquisition of Activision Blizzard is complete. After nearly two years of regulatory scrutiny, extensions, and some nail-biting moments, the deal officially closed on October 13, 2023. Activision Blizzard is now a wholly-owned subsidiary of Microsoft.
Understanding the Magnitude of the Acquisition
This isn’t just another corporate merger; it’s a seismic shift in the gaming industry landscape. Valued at a staggering $68.7 billion, this is the largest acquisition in gaming history. It brings under the Microsoft umbrella some of the most iconic and lucrative franchises in the world, including Call of Duty, World of Warcraft, Diablo, Overwatch, Starcraft, and Candy Crush. Furthermore, this acquisition included various studios such as Treyarch and Infinity Ward.
The journey to this point was anything but smooth. The deal faced intense regulatory scrutiny from bodies like the Federal Trade Commission (FTC) in the US and the Competition and Markets Authority (CMA) in the UK. Initially, the CMA blocked the deal, citing concerns about the impact on cloud gaming competition. However, Microsoft restructured the deal to address these concerns, ultimately paving the way for approval.
What This Means for Gamers
The implications of this acquisition are far-reaching. For gamers, the most immediate question is: What happens to my favorite games? Will they become exclusive to Xbox? Will they come to Game Pass? And how will this affect the future of the gaming industry?
While Microsoft has stated that it intends to keep Call of Duty available on PlayStation, the broader strategy is to leverage Activision Blizzard’s content to strengthen its Xbox ecosystem and its Game Pass subscription service. As Xbox chief Phil Spencer confirmed, you won’t see Activision Blizzard titles on Game Pass immediately. The expectation is that 2024 will be the year we see these titles integrated into Microsoft’s gaming subscription.
The Future of Gaming and Learning
The blending of gaming giants like Activision Blizzard with the technological prowess of Microsoft opens exciting avenues for innovation, especially in the realm of game-based learning. To further explore the convergence of gaming and education, check out the Games Learning Society at https://www.gameslearningsociety.org/. You can learn more about how gaming can be leveraged for educational purposes on the GamesLearningSociety.org website.
Frequently Asked Questions (FAQs) About the Microsoft-Activision Deal
Here are 15 of the most frequently asked questions about Microsoft’s acquisition of Activision Blizzard, providing a deeper dive into the details and implications of this landmark deal:
H3 FAQ 1: When did Microsoft officially acquire Activision Blizzard?
The acquisition officially closed on October 13, 2023. Activision Blizzard became a wholly-owned subsidiary of Microsoft on this date.
H3 FAQ 2: How much did Microsoft pay for Activision Blizzard?
Microsoft paid approximately $68.7 billion in an all-cash deal to acquire Activision Blizzard. This translates to roughly $95 per share.
H3 FAQ 3: Will Call of Duty become an Xbox exclusive?
While Microsoft has stated its intention to keep Call of Duty available on PlayStation platforms, the long-term strategy remains to be seen. Microsoft’s acquisition of Activision Blizzard will bring Call of Duty to more players than before.
H3 FAQ 4: Will Activision Blizzard games be added to Xbox Game Pass?
Yes, but not immediately. Xbox chief Phil Spencer has indicated that Activision Blizzard games are not expected to arrive on Xbox Game Pass until sometime in 2024.
H3 FAQ 5: What regulatory hurdles did the deal face?
The deal faced intense scrutiny from regulatory bodies such as the FTC in the US and the CMA in the UK. The CMA initially blocked the deal due to concerns about cloud gaming competition, but Microsoft restructured the deal to address these concerns.
H3 FAQ 6: Why did the deal take so long to finalize?
The extended timeline was primarily due to the regulatory hurdles and legal challenges mentioned above. Securing approvals from various regulatory bodies worldwide required extensive negotiations and concessions.
H3 FAQ 7: What other franchises does Microsoft now own through this acquisition?
Besides Call of Duty, Microsoft now owns iconic franchises like World of Warcraft, Diablo, Overwatch, Starcraft, Candy Crush, Guitar Hero, Crash Bandicoot, and Spyro.
H3 FAQ 8: Who owned Activision Blizzard before the acquisition?
Before the acquisition, Activision Blizzard was a publicly traded company with a diverse ownership structure consisting of institutional investors, insiders, and retail investors.
H3 FAQ 9: How does this acquisition affect Activision Blizzard employees?
The impact on Activision Blizzard employees remains to be seen. Microsoft has stated its commitment to fostering a positive work environment, but the long-term effects of the acquisition on the company’s workforce are still unclear.
H3 FAQ 10: What does this acquisition mean for the future of the gaming industry?
This acquisition consolidates Microsoft’s position as a major player in the gaming industry and intensifies the competition with other industry giants like Sony and Nintendo. It also signals a growing emphasis on subscription-based gaming models like Game Pass.
H3 FAQ 11: Will the acquisition affect game prices?
It’s too early to predict the impact on game prices. Microsoft could potentially leverage its resources to offer games at more competitive prices, particularly through Game Pass.
H3 FAQ 12: What are Microsoft’s plans for Activision Blizzard’s mobile games?
Microsoft gains access to Activision Blizzard’s mobile gaming expertise through King, the developer of Candy Crush. This strengthens Microsoft’s presence in the mobile gaming market.
H3 FAQ 13: How did the acquisition affect Activision Blizzard’s stock price?
When Microsoft first announced its intent to acquire Activision Blizzard, Activision Blizzard’s stock price jumped nearly 40% in pre-market trading.
H3 FAQ 14: Has Microsoft successfully acquired Activision Blizzard after extended deadline?
Yes, the deal was extended to October 18, 2023 and Microsoft successfully finalized the purchase of Activision Blizzard on October 13, 2023.
H3 FAQ 15: Does Microsoft own Activision Blizzard studios?
The acquisition included various studios such as Treyarch and Infinity Ward.
Conclusion
The Microsoft acquisition of Activision Blizzard marks a turning point in the gaming industry. While questions remain about the long-term implications, one thing is certain: the gaming landscape has been fundamentally altered. Keep an eye on future developments as Microsoft integrates Activision Blizzard into its gaming ecosystem and shapes the future of interactive entertainment.