Microsoft wins bid to acquire Activision Blizzard
On January 18, 2022, Microsoft announced plans to acquire Activision Blizzard for $68.7 billion, the largest gaming acquisition in history. The deal was approved by regulators in over 40 countries and was finalized on October 15, 2023.
The acquisition gives Microsoft ownership of some of the most popular video game franchises in the world, including Call of Duty, Overwatch, Diablo, and Candy Crush. It also gives Microsoft access to Activision Blizzard's massive library of games, as well as its talented team of developers.
Microsoft has said that it plans to make Activision Blizzard games available to more players on more platforms, including mobile, PC, and console. It has also said that it will invest in new games and technologies, and that it will work to create a more inclusive and welcoming gaming community.
The acquisition of Activision Blizzard is a major win for Microsoft. It gives the company a strong foothold in the mobile gaming market, and it expands its portfolio of popular video game franchises. Microsoft is now the world's third-largest gaming company by revenue, behind Tencent and Sony.
FTC and CMA
Th US Federal Trade Commission (FTC) sued to prevent the merger. Microsoft won this lawsuit in a grueling fight with the FTC earlier this week. A federal judge denied the preliminary injunction request from the US regulator. “The Court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition,” Judge Corley wrote in the ruling. “To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content."
The United Kingdom's Competition and Markets Authority or CMA, the UK version of the FTC, agreed to the deal after Microsoft agreed to buy Activision without cloud gaming rights. The cloud gaming right are to be licensed off to Ubisoft, a gaming company based out of France. The CMA had stated that MS having these cloud gaming rights would give the company an unfair advantage in the early stages of development for this new type of gaming. Cloud gaming is a technology that allows users to play video games on remote servers and stream them to their devices over the internet. This means that users can play games on devices that might not have the hardware to run the game normally.
What does the acquisition mean for gamers?
It is too early to say for sure what the acquisition of Activision Blizzard will mean for gamers in the long term. However, Microsoft has made a number of commitments that suggest that it is committed to making gaming more accessible and inclusive.
Microsoft has said that it will continue to release Activision Blizzard games on rival consoles, such as the PlayStation. It has also said that it will make Activision Blizzard games available to more players through its cloud gaming service, Xbox Game Pass.
Microsoft has also said that it is committed to creating a more inclusive and welcoming gaming community. The company has said that it will work to combat harassment and abuse in its games, and that it will promote diversity and inclusion in its workforce and in its games.
Overall, the acquisition of Activision Blizzard is a positive development for the gaming industry. Microsoft is a well-respected company with a strong track record in gaming. It is likely to invest heavily in Activision Blizzard and to make its games more accessible and inclusive.
What are the challenges ahead?
One of the biggest challenges that Microsoft faces is integrating Activision Blizzard into its existing gaming business. Activision Blizzard is a large and complex company, and it may take some time for Microsoft to fully integrate it into its operations.
Another challenge is that Microsoft will need to maintain the quality of Activision Blizzard games. Activision Blizzard franchises such as Call of Duty and Overwatch are very popular, and gamers have high expectations for new releases. Microsoft will need to ensure that it continues to invest in these franchises and that it produces high-quality games.
Finally, Microsoft will need to address the concerns of regulators. Some regulators have expressed concerns that the acquisition of Activision Blizzard could give Microsoft too much control over the gaming industry. Microsoft will need to work with regulators to address these concerns and to ensure that the acquisition is approved.
Overall, the acquisition of Activision Blizzard is a major undertaking for Microsoft. However, it is a deal that has the potential to benefit both gamers and Microsoft. Microsoft is a well-respected company with a strong track record in gaming. It is likely to invest heavily in Activision Blizzard and to make its games more accessible and inclusive.
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