Will Xbox Own Blizzard? A Deep Dive into the Microsoft Acquisition
Yes, Xbox, a brand owned by Microsoft, now owns Blizzard Entertainment. This monumental shift in the gaming landscape came to fruition with the closing of Microsoft’s $69 billion acquisition of Activision Blizzard on Friday, October 13th. This deal, one of the largest in tech history, has brought iconic gaming franchises like Call of Duty, World of Warcraft, Diablo, and Overwatch under the Microsoft umbrella. The path to this acquisition was not without its hurdles, involving over 20 months of regulatory battles, but the deal has finally been completed, reshaping the future of the video game industry.
The Closing of the Acquisition
The acquisition of Activision Blizzard by Microsoft is not just a simple purchase; it’s a massive consolidation of gaming power. After battling regulatory hurdles both in the U.S. and the U.K., Microsoft successfully navigated complex legal proceedings to finally close this landmark deal. The final agreement saw Microsoft paying $95 per share to Activision stockholders. This acquisition signifies Microsoft’s aggressive push to expand its footprint in the gaming world and is a key strategy in its long-term vision for the metaverse and cloud gaming.
Regulatory Challenges and Overcoming Them
The road to acquisition was fraught with obstacles, primarily due to regulatory concerns about potential monopolies. The U.S. Federal Trade Commission (FTC) initially tried to block the deal, arguing it would give Microsoft an unfair advantage in the gaming market. Similarly, the UK’s Competition and Markets Authority (CMA) raised concerns. However, after winning in court against the FTC and restructuring the agreement to appease the CMA, Microsoft was able to proceed with its purchase. These challenges underscored the sheer scale and significance of the deal, highlighting its potential impact on the entire gaming industry.
What This Means for Gamers
The acquisition has sparked numerous questions among gamers worldwide. One of the most pressing concerns is whether iconic games like Call of Duty and Diablo will become exclusive to Xbox consoles and the Xbox Game Pass. While there is no indication that these games will be exclusive, they will become part of the Xbox ecosystem. This means more opportunities for players to access these titles, particularly through Xbox’s Game Pass service.
No Immediate Exclusivity, but Game Pass Integration
While the article clarifies that this deal is not aimed at gaining exclusives, the sheer scale of franchises that are now under the Microsoft banner could impact the console landscape. Microsoft is not seeking to make these games exclusive to the Xbox platform, primarily because they generate substantial revenue on other consoles like PlayStation. However, games are expected to be added to Xbox Game Pass in the future, although this won’t happen until 2024. This means gamers might see titles like Call of Duty and Diablo available as part of their Game Pass subscription, potentially increasing the service’s value.
Activision Blizzard’s Leadership and Future
Despite the acquisition, Activision Blizzard CEO Bobby Kotick is expected to remain in his role through the end of 2023. This continuity suggests a period of transition during which the company will integrate into Microsoft’s structure. It’s also worth noting that this deal means Microsoft now owns Activision Publishing, Blizzard Entertainment, and King, the developers behind popular games like Candy Crush. This vast portfolio will give Microsoft an unparalleled advantage in the mobile gaming sector.
Microsoft’s Strategic Gaming Vision
The acquisition is deeply rooted in Microsoft’s ambition to dominate the gaming industry and expand into the metaverse and cloud gaming. This purchase will bolster Microsoft’s Game Pass service, which could become an even more significant player with the addition of Activision Blizzard’s massive catalog of titles. The deal also positions Microsoft as a leading force in the increasingly lucrative mobile gaming market.
Expanding into the Metaverse and Cloud Gaming
Microsoft’s moves to acquire Activision Blizzard have been closely linked to its broader strategy of metaverse development. By acquiring such a significant gaming portfolio, Microsoft aims to create immersive and engaging metaverse experiences, leveraging the popularity and reach of these games. Additionally, the cloud gaming aspect will also benefit from this acquisition, offering gamers greater flexibility and accessibility to popular titles on various devices.
Frequently Asked Questions (FAQs)
To further clarify and address common questions surrounding this acquisition, here are 15 frequently asked questions:
1. Will Call of Duty become an Xbox exclusive?
No, despite being acquired by Microsoft, Call of Duty is not expected to become exclusive to Xbox. Microsoft recognizes the significant revenue generated by the franchise on other platforms and will likely continue to release it on multiple consoles.
2. How much did Microsoft pay for Activision Blizzard?
Microsoft paid a total of $69 billion for the acquisition of Activision Blizzard, which translates to $95 per share for Activision stockholders.
3. Will World of Warcraft come to Xbox Game Pass?
Yes, World of Warcraft is expected to eventually be added to Xbox Game Pass, although not immediately. The integration process will likely begin sometime in 2024.
4. Did Blizzard sell to Microsoft or was it the other way around?
Microsoft bought Activision Blizzard, which includes Blizzard Entertainment, as part of the acquisition. Blizzard did not sell to Microsoft directly.
5. Why did Microsoft acquire Activision Blizzard?
Microsoft acquired Activision Blizzard to expand its gaming footprint, strengthen its Game Pass service, delve deeper into the metaverse, and enhance its position in mobile gaming.
6. Will Diablo 4 be available on Game Pass this year?
No, Diablo 4 will not be available on Game Pass this year. Activision Blizzard has clarified that they will wait until 2024 to begin adding their titles to the subscription service.
7. Will Activision games still be on PlayStation?
Yes, it is expected that Activision games like Call of Duty and Diablo will continue to be available on PlayStation. There is no intention to make these titles exclusive to Xbox.
8. What is the impact of this acquisition on Activision stock?
Activision stockholders received $95 for each share they owned prior to the closing of the acquisition.
9. What happens to Activision Blizzard’s CEO, Bobby Kotick?
Bobby Kotick will remain as CEO of Activision Blizzard until the end of 2023, ensuring a smooth transition period.
10. Who owns Xbox now?
Xbox is still owned by Microsoft. The acquisition of Activision Blizzard simply means that Microsoft now owns the subsidiary studios as well.
11. Is Microsoft paying cash for the acquisition?
Yes, Microsoft’s acquisition of Activision Blizzard is an all-cash deal, amounting to $69 billion.
12. Why was it difficult for Microsoft to acquire Activision Blizzard?
The acquisition faced regulatory challenges from both the U.S. FTC and the UK CMA, which raised concerns about competition and monopoly issues. Microsoft had to overcome these obstacles through legal battles and restructuring the deal.
13. Will there be any changes in the game development after the deal?
While the exact future development is yet to be seen, Microsoft has stated its commitment to supporting the creative teams at Activision Blizzard. No large changes in existing projects are currently anticipated.
14. What other gaming studios does Microsoft own?
Besides Activision Blizzard, Microsoft owns Xbox Game Studios, which includes studios like Bethesda, id Software, and Mojang (developers of Minecraft).
15. How does this deal impact the video game industry?
The acquisition is a massive shift in the gaming industry, further consolidating power within tech giants. It will intensify competition and potentially lead to innovations and changes in how gamers access and enjoy video games. It also solidifies Microsoft’s position as a major player in the gaming market.
In conclusion, while the dust settles, one thing is clear: Microsoft’s ownership of Activision Blizzard is a game-changer. It signifies a new era for the video game industry, with implications for players, developers, and the future of gaming itself. While exclusivity may not be on the immediate horizon, expect substantial integration into Microsoft’s ecosystem, especially with Xbox Game Pass, making popular Activision Blizzard titles more accessible. This acquisition marks a pivotal moment in gaming history, one that players and industry watchers will closely follow in the coming years.