When Microsoft acquired Bethesda, many gamers wondered how deep Microsoft’s pockets really were. Now, the gaming giant has shocked the world by reaching a deal to acquire Activision Blizzard in one of the biggest moves in gaming history.
Microsoft Gaming CEO Phil Spencer confirmed this news today via Xbox Wire. The acquisition isn’t cheap, though: it’s worth a staggering $ 68.7 billion. Microsoft paid less than a tenth of that amount with their equally shocking acquisition of Bethesda in 2020.
Nothing is finalized yet and both Microsoft and Activision Blizzard continue as separate entities for the time being. However, gamers marveled at the sheer number of IPs Microsoft will own once the acquisition is final. By adding Call of Duty and Overwatch to Halo Infinite, Microsoft is almost conquering the market for FPS titles. And taking control of Spyro and Crash Bandicoot means that the beloved properties once associated primarily with PlayStation will now live in the home built by the Master Chief.
Perhaps most interestingly, however, Microsoft is acquiring beloved Blizzard titles like Hearthstone and World of Warcraft. The latter still has nearly five million active subscribers, most of whom pay a subscription fee of $ 14.99 per month. Combine this with Microsoft’s upcoming ownership of Candy Crush and this costly acquisition could generate a profit for them sooner than you think.
Furthermore, it cannot be overstated that Microsoft wants to make Game Pass an even more appealing subscription for gamers. Spencer confirmed that 25 million players are already Game Pass subscribers, and that Microsoft will bring as many Activision Blizzard titles as they could to Game Pass for Xbox and PC as soon as the deal ends. That’s right, Game Pass (which was already the best deal in games) gets even better.
What is less clear is what this acquisition will do to Activision Blizzard’s corporate structure. It seems unlikely the company would have sold to Microsoft had it not been for the California lawsuit against the company that unearthed horrific news about discrimination, sexual harassment and more. Activision Blizzard has already let several key employees commit to reforming their public image, but that hasn’t stopped high-profile events like employee strikes from occurring.
However, Activision Blizzard CEO Bobby Kotick (who allegedly had been aware of rampant sexual misconduct issues at his company for years and has been accused by multiple women himself), remains CEO for the time being. But Spencer went out of his way to say that Microsoft is committed to “treating every person with dignity and respect”, that “we keep all teams, and all leaders, in this commitment” and that “we can’t wait to extend the our culture of proactive inclusion in Activision Blizzard’s great teams. ”
Reading between the lines, such “proactive inclusion” could ultimately exclude Kotick from the company altogether. Only time will tell what Microsoft will ultimately do with Activision Blizzard’s current leadership once this acquisition is finalized.
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