Why is Microsoft Buying Call of Duty?
Microsoft is buying Call of Duty as part of its $69 billion acquisition of Activision Blizzard, aiming to further improve its presence in the gaming industry and consolidate itself as the de facto king of cloud gaming, while also gaining access to multi-million dollar IPs such as Call of Duty, Overwatch, Diablo, and WarCraft franchises. This strategic move is expected to boost Microsoft’s Xbox gaming console, which currently ranks third in sales behind PlayStation and Nintendo, by providing huge revenues from Activision Blizzard’s popular games, including Call of Duty, World of Warcraft, and Candy Crush.
FAQs About Microsoft Buying Call of Duty
General Questions
- Why did Microsoft want Activision?: Microsoft wanted Activision Blizzard to gain access to its valuable IPs, including Call of Duty, Overwatch, and Diablo, and to bolster its position in the gaming industry and cloud gaming.
- Is Microsoft really buying Activision?: Yes, Microsoft has completed its $69 billion acquisition of Activision Blizzard, making it one of the most expensive tech acquisitions in history.
- What is Microsoft going to do with Call of Duty?: Microsoft will control Call of Duty and other Activision Blizzard games, providing huge revenues, and has agreed to keep Call of Duty on PlayStation consoles for at least 10 years.
Acquisition and Ownership
- How much is Microsoft buying Call of Duty for?: Microsoft acquired Activision Blizzard, the maker of Call of Duty, for $69 billion.
- Who owns Call of Duty?: Call of Duty is owned by Activision, which is a subsidiary of Microsoft after the acquisition.
- Who owns Microsoft?: The ownership structure of Microsoft is a mix of institutional, retail, and individual investors, with approximately 41.23% owned by institutional investors, 2.97% by insiders, and 55.80% by public companies and individual investors.
Gaming Industry Impact
- Is Xbox buying Activision good?: The acquisition could incentivize more Xbox and PlayStation exclusive titles, but also raises concerns about Microsoft holding a monopoly over Activision/Blizzard exclusivity.
- Will Call of Duty be Xbox exclusive?: No, Call of Duty will not be exclusive to Xbox, as Microsoft has agreed to keep it on PlayStation consoles for at least 10 years.
- Will PlayStation get Call of Duty?: Yes, Sony and Microsoft have signed a 10-year deal to keep Call of Duty on PlayStation consoles.
Industry Reactions
- Who is against the Microsoft Activision deal?: The FTC and Britain’s Competition and Markets Authority initially opposed the acquisition, citing concerns about anti-competitive practices.
- Why didn’t Sony buy Activision?: Sony has a market cap of $113 billion, making Activision too expensive to acquire, and has instead focused on smaller purchases like Bungie.
- Did Sony buy Blizzard?: No, Microsoft acquired Activision Blizzard, including Blizzard, as part of the $69 billion deal.
Future Plans
- Is Microsoft trying to make Call of Duty exclusive?: No, Microsoft has repeatedly stated that it has no intention of making Call of Duty an Xbox exclusive.
- What happens to my Activision stock when Microsoft buys it?: Activision stockholders will receive $95 for each share of Activision they owned prior to the close of the acquisition.
- Did Microsoft lose the Activision deal?: No, Microsoft completed the acquisition of Activision Blizzard after resolving issues with regulators in the UK and US.