Why did Microsoft buy COD?
Microsoft bought Call of Duty (COD) as part of its $69 billion acquisition of Activision Blizzard, a move aimed at breaking into the $90 billion mobile gaming market and bolstering its Xbox gaming console. By acquiring Activision Blizzard, Microsoft gains ownership of popular gaming franchises like Call of Duty, Diablo, and Overwatch, significantly expanding its portfolio and competitiveness in the gaming industry.
Background and Motivations
To understand the motivations behind Microsoft’s acquisition of Call of Duty, it’s essential to look at the gaming industry’s landscape and Microsoft’s strategy. The gaming market, including mobile games and console games, has seen tremendous growth, with Microsoft, Sony, and Nintendo being key players. Microsoft’s Xbox console, while popular, ranks third in sales behind Sony’s PlayStation and Nintendo. The acquisition of Activision Blizzard and its portfolio, which includes Call of Duty, Diablo, Overwatch, and Candy Crush Saga, represents a significant move to strengthen Microsoft’s position.
Implications and FAQs
The acquisition has raised several questions among gamers, investors, and industry observers. Here are some key points and FAQs that provide insight into the deal:
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What does Microsoft gain from buying Call of Duty? Microsoft gains a highly successful and profitable gaming franchise that can boost its Xbox sales and competitiveness in the gaming market.
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Will Call of Duty become an Xbox exclusive? No, Microsoft has stated that Call of Duty will not be made exclusive to any one platform, ensuring that gamers across different consoles can continue to play.
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Why was the acquisition controversial? The deal was controversial due to concerns over anti-competitive effects, with Sony and regulators expressing worries that Microsoft could use its newfound power to dominate the gaming market.
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How much did Microsoft pay for Activision Blizzard? Microsoft paid $69 billion for Activision Blizzard, making it one of the largest deals in the gaming industry.
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What other games does Microsoft now own? Besides Call of Duty, Microsoft now owns rights to Diablo, Overwatch, World of Warcraft, Starcraft, Guitar Hero, Crash Bandicoot, and Spyro, among others.
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Who is the CEO of Activision Blizzard? Bobby Kotick is the CEO of Activision Blizzard, which is now a wholly-owned subsidiary of Microsoft.
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Why did Activision Blizzard agree to the sale? The sale was likely agreed upon to unlock the value of Activision Blizzard’s intellectual properties and to navigate the ever-changing gaming landscape under the backing of a major tech company like Microsoft.
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How does this affect Activision stockholders? Each Activision Blizzard share was exchanged for $95.00 per share, which was deposited into the stockholders’ accounts, effectively ending their ownership in Activision Blizzard.
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Is Blizzard now a part of Microsoft? Yes, Blizzard is now a part of Microsoft, as Activision Blizzard is a wholly-owned subsidiary of Microsoft.
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What does the future hold for Call of Duty and other Activision Blizzard games? The future likely involves continued development and release of new titles under these franchises, potentially with enhanced capabilities and integrations with Microsoft’s other gaming and cloud services.
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Did Sony try to block the acquisition? Sony expressed concerns and likely attempted to influence regulatory decisions, but ultimately, the acquisition was approved.
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How long did the acquisition process take? The acquisition process took over 20 months, involving lengthy regulatory reviews and negotiations.
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What role did regulatory bodies play in the acquisition? Regulatory bodies in the UK and US reviewed the deal to ensure it did not violate anti-competitive laws, with the UK’s Competition and Markets Authority (CMA) and the US Federal Trade Commission (FTC) being key players.
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Will Microsoft’s acquisition of Activision Blizzard change the gaming industry? Yes, the acquisition has the potential to significantly change the gaming industry, affecting market shares, game development, and the competitive landscape.
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What’s next for Microsoft and Activision Blizzard? The focus will be on integrating Activision Blizzard into Microsoft, ensuring a smooth transition for gamers, and leveraging the acquired franchises to grow Microsoft’s gaming division and enhance its position in the market.
Conclusion
Microsoft’s acquisition of Call of Duty through its purchase of Activision Blizzard marks a pivotal moment in the gaming industry, with potential far-reaching implications for gamers, developers, and the competitive landscape. As the industry evolves, Microsoft’s move is seen as a strategic play to strengthen its Xbox brand and expand its reach in the gaming market. With assurances that Call of Duty will remain available across platforms, gamers can look forward to continued access to their favorite titles, potentially with new features and improvements under Microsoft’s stewardship.