Xbox and Activision: The Deal is Done – What Does it Mean?

The short, definitive answer is yes, Xbox now owns Activision. This monumental acquisition, finalized on Friday, October 13th, marks a turning point in the gaming industry. The $68.7 billion deal, the largest in gaming history, brings iconic franchises like Call of Duty, World of Warcraft, and Overwatch under the Microsoft umbrella. This article delves into the details of this massive acquisition and its implications for gamers worldwide.

The Acquisition: A Recap

Microsoft’s intent to acquire Activision Blizzard was announced back in January 2022. What followed was a lengthy and complex process, fraught with regulatory hurdles and legal challenges from various global antitrust bodies and rival companies. Despite the initial setbacks and strong opposition, particularly from the UK’s Competition and Markets Authority (CMA), Microsoft ultimately secured approval after addressing the regulators’ concerns.

The deal closed on Friday the 13th of October, sealing a historic moment for the gaming industry. This acquisition brings not just incredibly valuable game franchises to Xbox, but also powerful development studios like Treyarch and Infinity Ward, promising a massive boost to Microsoft’s gaming portfolio and significantly affecting the future of the console wars.

What the Acquisition Means for You

The immediate impact of this acquisition is that Microsoft now has full control over Activision Blizzard and its extensive catalog of games and intellectual properties. This has a number of implications, but the most significant is likely to be:

• More Content for Xbox: Microsoft gains access to immensely popular game franchises, directly boosting the Xbox Game Pass. While not immediately available, the acquisition will inevitably bring a steady stream of Activision Blizzard titles to the subscription service in the coming years.
• Potential Exclusivity: While immediate exclusivity for major titles like Call of Duty isn’t likely before 2038 due to pre-existing deals, this is a long-term question mark that Xbox and Playstation players will need to pay attention to.
• Expanded Ecosystem: This acquisition further strengthens the Xbox ecosystem by integrating Activision’s vast player base and titles. This also expands Microsoft’s reach in mobile gaming, thanks to Activision’s ownership of titles like Candy Crush Saga.
• New Opportunities and Challenges: For developers, the move could lead to increased resources and innovative opportunities. For consumers, there is the exciting potential for enhanced gaming experiences. However, some also worry about potential consolidation and its impact on game pricing and accessibility.
• Increased Competition: The deal has been viewed as a direct challenge to Sony and other players in the gaming industry, and will undoubtedly lead to new strategic moves by these competitors.

The Road Ahead for Activision Games

With the deal finalized, many gamers are wondering what the future holds for their favorite Activision titles. While definitive plans are still unfolding, some key points to consider include:

Call of Duty

Despite some initial concerns about exclusivity, it’s highly probable that Call of Duty will remain multi-platform for the near future. However, the deal undoubtedly provides Xbox with increased flexibility regarding the franchise’s future. Currently there is a 15 year deal where Ubisoft has the cloud gaming rights for all Activision Blizzard games.

World of Warcraft, Overwatch, and Diablo

The future for titles like World of Warcraft, Overwatch, and Diablo also seems bright. While some titles might receive Xbox exclusivity, this is not the overall view at this point. The availability on Xbox Game Pass is more likely. Additionally, Microsoft has expressed interest in expanding these franchises, potentially offering new content and features to reach a wider audience on various platforms.

The Impact on PlayStation

One of the biggest questions following the deal is how it will impact PlayStation users. Microsoft has made agreements with Sony to ensure the continuation of Activision titles on the PlayStation. However, in the long term, the dynamic could change. This leaves PlayStation gamers with some uncertainty.

Frequently Asked Questions (FAQs)

To further address questions surrounding the acquisition, here are 15 FAQs:

1. How much did Microsoft pay for Activision?

Microsoft acquired Activision Blizzard for $68.7 billion, making it the largest acquisition in the history of the video game industry.

2. When was the Activision deal finalized?

The deal was finalized on Friday, October 13th, 2023.

3. What major franchises does Microsoft acquire with this deal?

Microsoft now owns franchises like Call of Duty, World of Warcraft, Overwatch, Diablo, and Candy Crush Saga, among others.

4. Will Activision games become exclusive to Xbox?

Not immediately. There are existing agreements with Sony that ensure Activision games will be on PlayStation, and Ubisoft holds the cloud gaming rights to all Activision Blizzard titles for 15 years. However, in the long term, the potential for exclusivity remains.

5. Will Call of Duty be on Xbox Game Pass?

Yes, but not until 2024. While it won’t happen right away, Microsoft is expected to eventually integrate Activision Blizzard titles into its Game Pass subscription service.

6. What happens to Activision stock?

Activision stockholders received $95 for each share of Activision they owned prior to the deal closing.

7. Why did the UK initially block the acquisition?

The UK’s Competition and Markets Authority (CMA) initially blocked the deal due to concerns about competition in the cloud gaming market.

8. Was the acquisition approved by all regulators?

Yes, after revisions, all major regulatory bodies, including the UK’s CMA, approved the acquisition, thus finalizing the deal.

9. Will I still be able to play Activision games on PlayStation?

Yes. Microsoft has made a deal with Sony to keep Activision Blizzard games on PlayStation consoles.

10. Does Microsoft own all of Activision’s studios?

Yes, the acquisition includes all of Activision Blizzard’s development studios, such as Treyarch and Infinity Ward.

11. What does this acquisition mean for game developers?

The deal could offer developers increased resources and new opportunities under the Microsoft umbrella.

12. What is the impact on the gaming industry as a whole?

The acquisition is a game-changer, potentially leading to increased competition, consolidation, and significant changes in game availability and accessibility.

13. Is this the biggest acquisition in Microsoft’s history?

Yes, this is the biggest acquisition in Microsoft’s history.

14. How long did it take to finalize the deal?

It took 633 days to finalize the deal after its initial announcement in January 2022.

15. Does Microsoft also own Blizzard now?

Yes, as part of the Activision Blizzard acquisition, Microsoft now also owns Blizzard.

Conclusion

The acquisition of Activision Blizzard by Microsoft represents a new chapter in the gaming industry. It will have ramifications on consoles and players for years to come, and it is imperative that we remain alert to how it evolves. The deal may initially seem to favor Xbox, but in the long run, the shifts and changes are likely to continue to redefine the gaming landscape. Only time will tell what the long term future will hold, but for now, Microsoft is the new owner of Activision and all that comes with it.