The Microsoft Activision Blizzard Deal: Finalized, Facts, and Future

Yes, the Microsoft Activision Blizzard deal is finalized. After a long and arduous journey filled with regulatory hurdles, legal battles, and intense scrutiny, Microsoft officially closed its acquisition of Activision Blizzard on October 13, 2023. This monumental deal, valued at approximately $69 billion, represents the largest acquisition in video game history and marks a significant shift in the gaming landscape.

Understanding the Significance of the Acquisition

This acquisition is far more than just a financial transaction; it’s a strategic move by Microsoft to solidify its position as a leading player in the gaming industry. By bringing Activision Blizzard under its umbrella, Microsoft gains control of some of the most popular and lucrative gaming franchises in the world, including Call of Duty, World of Warcraft, Diablo, Overwatch, and Candy Crush.

The implications of this acquisition are vast and touch upon various aspects of the gaming ecosystem, from console competition and cloud gaming to game development and the future of the metaverse.

Key Benefits for Microsoft

• Expanded Gaming Portfolio: Access to Activision Blizzard’s extensive library of games instantly boosts Microsoft’s gaming portfolio, making it more attractive to players and potential subscribers.
• Strengthened Xbox Game Pass: Microsoft plans to integrate Activision Blizzard games into Xbox Game Pass, its subscription service, offering subscribers even more value and driving further adoption.
• Increased Market Share: The acquisition significantly increases Microsoft’s market share in the video game industry, allowing it to better compete with rivals like Sony and Tencent.
• Metaverse Opportunities: Activision Blizzard’s popular franchises can be leveraged to create immersive experiences within the metaverse, aligning with Microsoft’s broader metaverse ambitions.
• Mobile Gaming Dominance: With King, the mobile gaming division of Activision Blizzard, Microsoft establishes a major presence in the rapidly growing mobile gaming market.

Regulatory Hurdles Overcome

The path to finalization was not without its challenges. Regulatory bodies around the world, including the Federal Trade Commission (FTC) in the United States and the Competition and Markets Authority (CMA) in the United Kingdom, raised concerns about potential anticompetitive effects of the acquisition.

Initially, the CMA blocked the deal, citing concerns about Microsoft’s dominance in the cloud gaming market. However, Microsoft addressed these concerns by restructuring the deal, including an agreement with Ubisoft to grant them the cloud streaming rights for Activision Blizzard games outside of Europe. This concession ultimately led to the CMA’s approval, paving the way for the deal to close.

The FTC also attempted to block the acquisition but was ultimately unsuccessful in court.

Microsoft’s Vision for Activision Blizzard

Microsoft has outlined its vision for Activision Blizzard, emphasizing its commitment to delivering more games to more people across various platforms.

Key Plans:

• Expanding Game Availability: Bringing Activision Blizzard games to Xbox Game Pass to reach a wider audience.
• Investing in Game Development: Continuing to invest in the development of new and innovative games within the Activision Blizzard studios.
• Maintaining Multiplatform Support: Ensuring that popular franchises like Call of Duty remain available on PlayStation, as per an agreement with Sony.
• Fostering a Positive Workplace Culture: Addressing concerns about the workplace culture at Activision Blizzard and creating a more inclusive and respectful environment.

Frequently Asked Questions (FAQs)

Here are 15 Frequently Asked Questions to provide further information about this landmark acquisition:

1. How much did Microsoft offer for Activision Blizzard? Microsoft offered $95 per share, totaling approximately $69 billion for the acquisition of Activision Blizzard.

2. Will Call of Duty become an Xbox exclusive? No, Call of Duty will not become an Xbox exclusive. Microsoft has committed to keeping Call of Duty available on PlayStation, even signing a 10-year deal with Sony to ensure its continued presence on the platform.

3. What will happen to Activision Blizzard employees? Activision Blizzard’s approximately 8,500 employees will become part of Microsoft. Microsoft has stated its commitment to fostering a positive workplace culture within the company.

4. What is Xbox Game Pass, and how will this deal impact it? Xbox Game Pass is Microsoft’s subscription service that provides access to a library of games for a monthly fee. The acquisition will significantly enhance Xbox Game Pass by adding Activision Blizzard’s games to the service, making it more appealing to subscribers.

5. Why was Sony initially against the Microsoft Activision deal? Sony was concerned that Microsoft could make Call of Duty an Xbox exclusive, giving them a significant competitive advantage in the console market.

6. What role did regulators play in this acquisition? Regulatory bodies, such as the FTC and CMA, scrutinized the deal to ensure it didn’t violate antitrust laws and harm competition.

7. Who is Ubisoft, and what is their involvement in this deal? Ubisoft is a French video game publisher. To address concerns about cloud gaming dominance, Microsoft agreed to grant Ubisoft the cloud streaming rights for Activision Blizzard games outside of Europe.

8. How long did it take for the Microsoft Activision deal to finalize? The deal took approximately 21 months to finalize, from the initial announcement to the official closing.

9. Will this deal affect Activision Blizzard stock? Activision Blizzard stockholders saw a financial boost, as Microsoft offered $95 per share, a significant premium over the company’s pre-bid trading price.

10. What are the potential benefits for gamers? Gamers can benefit from increased access to Activision Blizzard games through Xbox Game Pass, potential improvements in game development, and a wider range of gaming experiences.

11. What is the future of Blizzard games under Microsoft’s ownership? Microsoft plans to continue investing in Blizzard games and bring them to a wider audience through Xbox Game Pass.

12. Will Microsoft make any changes to Activision Blizzard’s leadership? The extent of leadership changes remains to be seen. Microsoft has emphasized its commitment to fostering a positive workplace culture within Activision Blizzard.

13. What impact will this deal have on the gaming industry as a whole? The acquisition is expected to have a significant impact on the gaming industry, leading to increased competition, innovation, and a shift in the balance of power.

14. What does this mean for the metaverse? Microsoft can leverage Activision Blizzard’s franchises to create immersive experiences within the metaverse, aligning with its broader metaverse ambitions.

15. Where can I find more information on games and learning? You can learn more about the intersection of games and education on the Games Learning Society website at https://www.gameslearningsociety.org/. The GamesLearningSociety.org fosters research and collaboration in the field of game-based learning.

The Future of Gaming is Here

The closing of the Microsoft Activision Blizzard deal marks a new era for the gaming industry. With Microsoft’s resources and expertise, combined with Activision Blizzard’s iconic franchises, the future of gaming looks brighter than ever. While challenges and adjustments are inevitable, the potential for innovation, expanded access, and enhanced gaming experiences is immense. Only time will tell the full impact of this landmark acquisition, but one thing is certain: the gaming landscape has been forever changed.