Introduction

Microsoft, one of the world’s largest technology companies, has completed its biggest acquisition ever in the gaming industry. The tech giant has bought Activision Blizzard, the maker of popular games such as Call of Duty, World of Warcraft, Diablo, and Overwatch, for a whopping $69 billion. The deal, which was announced in January 2023, received the final approval from Britain’s Competition and Markets Authority (CMA) on October 13, 2023, after clearing other regulatory hurdles in the US and Europe.

The acquisition is a game-changer for both Microsoft and Activision Blizzard, as well as for the gaming industry and consumers. It will significantly boost Microsoft’s gaming portfolio and strategy, while giving Activision Blizzard a new owner and partner to overcome its recent troubles and challenges. It will also have a profound impact on gamers who play Activision Blizzard’s games on different platforms, such as PC, Xbox, PlayStation, Switch, and mobile devices.

In this article, we will explore the details and implications of the Microsoft Activision Blizzard deal, and what it means for the future of gaming. We will cover the following topics:

• Microsoft’s gaming ambitions and strategy
• Activision Blizzard’s troubles and opportunities
• What does the deal mean for gamers?
• Conclusion

Microsoft’s gaming ambitions and strategy

Microsoft has been investing heavily in gaming in recent years, as part of its vision of becoming a leading gaming company and expanding its cloud gaming service, Xbox Game Pass. Xbox Game Pass is a subscription-based service that allows users to access a library of over 100 games on Xbox consoles, PCs, and mobile devices for a monthly fee. Microsoft has been adding more games and features to Xbox Game Pass, such as cloud streaming, EA Play integration, and exclusive titles from its own studios.

The deal with Activision Blizzard will further enhance Microsoft’s gaming offerings and position in the market. By acquiring Activision Blizzard, Microsoft will gain access to some of the most popular and profitable franchises in gaming history, such as Call of Duty, World of Warcraft, Diablo, Overwatch, Candy Crush, and more. These games have millions of loyal fans and generate billions of dollars in revenue every year. Microsoft will also increase its presence in the mobile gaming sector, which is the largest and fastest-growing segment of the global gaming market. Additionally, Microsoft will diversify its revenue streams by adding Activision Blizzard’s subscription-based services, such as World of Warcraft and Call of Duty Premium.

The deal will also give Microsoft a competitive edge over its rivals, such as Sony, Nintendo, Tencent, and Ubisoft. Microsoft will have more than 30 game studios under its umbrella, compared to Sony’s 13 and Nintendo’s 9. Microsoft will also have more exclusive games for its Xbox Game Pass subscribers, which could attract more users to its platform. Moreover, Microsoft could leverage Activision Blizzard’s expertise and technology to develop new games and genres that appeal to different audiences and regions. For instance, Microsoft could tap into Activision Blizzard’s experience in making esports titles like Overwatch and Call of Duty to create more competitive games for Xbox Game Pass.

However, the deal could also face some challenges and backlash from regulators and critics. Some regulators might be concerned about the potential antitrust issues that could arise from the deal, such as market dominance, reduced competition, and consumer harm. Some critics might also question the ethical implications of the deal, given Activision Blizzard’s recent controversies over its workplace culture and practices. Some gamers might also be worried about the possible changes that could affect their favorite games or platforms as a result of the deal.

Activision Blizzard’s troubles and opportunities

Activision Blizzard has been one of the most successful and influential gaming companies in the world for decades. The company has produced some of the most iconic and beloved games in gaming history, such as Call of Duty, World of Warcraft, Diablo, Overwatch, and more. The company has also been one of the most profitable and valuable gaming companies in the world, with a market capitalization of over $60 billion before the deal was announced.

However, the company has also been facing some serious problems and challenges in recent years. Some of these problems include:

• Declining player engagement and retention in some of its flagship games, such as World of Warcraft, Overwatch, and Hearthstone. The company has struggled to keep up with the changing preferences and expectations of gamers, who are looking for more variety, innovation, and quality in their gaming experiences.
• Workplace culture issues and allegations of sexual harassment, discrimination, and abuse. The company has been sued by the California Department of Fair Employment and Housing (DFEH) and the US Securities and Exchange Commission (SEC) for violating the state and federal laws on equal pay, sexual harassment, and retaliation. The company has also faced a massive backlash and boycott from its employees, investors, partners, and customers over its handling of the situation.
• Lawsuits and investigations from regulators, shareholders, and other parties. The company has been accused of misleading investors, violating securities laws, breaching contracts, infringing intellectual property rights, and more. The company has also been under scrutiny by regulators in different countries over its tax practices, data privacy policies, and loot box mechanics.

The deal with Microsoft could help Activision Blizzard address some of these challenges and turn them into opportunities. Some of the ways that the deal could benefit Activision Blizzard are:

• Leveraging Microsoft’s resources, technology, and expertise. Microsoft could provide Activision Blizzard with more financial, technical, and human resources to support its game development and operations. Microsoft could also share its technology and expertise in areas such as cloud computing, artificial intelligence, and machine learning to enhance Activision Blizzard’s games and services. Microsoft could also help Activision Blizzard improve its workplace culture and practices by implementing its own standards and policies on diversity, inclusion, and ethics.
• Reaching new audiences, developing new games, and collaborating with other Xbox studios. Microsoft could help Activision Blizzard expand its reach and appeal to new audiences and regions by featuring its games on Xbox Game Pass and other Microsoft platforms. Microsoft could also help Activision Blizzard develop new games and genres that cater to different tastes and preferences of gamers. Microsoft could also facilitate collaboration and cross-pollination between Activision Blizzard and other Xbox studios, such as Bethesda, Rare, 343 Industries, and more.
• Reviving old franchises, updating existing games, and launching new titles. Microsoft could help Activision Blizzard revive some of its old franchises that have been dormant or neglected for years, such as StarCraft, Warcraft, Guitar Hero, Tony Hawk’s Pro Skater, and more. Microsoft could also help Activision Blizzard update and improve some of its existing games that have been losing players or facing criticism, such as World of Warcraft, Overwatch, Diablo Immortal, and more. Microsoft could also help Activision Blizzard launch some of its highly anticipated new titles that have been delayed or in development for a long time, such as Diablo 4, Overwatch 2, Call of Duty: Vanguard, and more.

What does the deal mean for gamers?

The deal between Microsoft and Activision Blizzard will have a significant impact on gamers who play Activision Blizzard’s games on different platforms, such as PC, Xbox, PlayStation, Switch, and mobile devices. The deal could bring some changes to the availability, exclusivity, pricing, quality, and content of these games. Some of the possible changes that gamers could expect to see are:

• Availability: Some of Activision Blizzard’s games could become more available or less available on certain platforms depending on Microsoft’s strategy. For example, some of Activision Blizzard’s games could be added to Xbox Game Pass or other Microsoft platforms, making them more accessible and affordable for Xbox Game Pass subscribers. On the other hand, some of Activision Blizzard’s games could be removed or restricted from other platforms, such as PlayStation or Switch, making them less accessible or more expensive for non-Xbox Game Pass users.
• Exclusivity: Some of Activision Blizzard’s games could become exclusive or non-exclusive to certain platforms depending on Microsoft’s strategy. For example, some of Activision Blizzard’s games could be made exclusive to Xbox Game Pass or other Microsoft platforms, giving Xbox Game Pass subscribers an advantage over non-Xbox Game Pass users. On the other hand, some of Activision Blizzard’s games could remain non-exclusive to any platform, allowing gamers to play them on their preferred device or service.
• Pricing: Some of Activision Blizzard’s games could become cheaper or more expensive on certain platforms depending on Microsoft’s strategy. For example, some of Activision Blizzard’s games could be included in Xbox Game Pass or other Microsoft platforms for a low monthly fee or even for free, making them more affordable for Xbox Game Pass subscribers. On the other hand, some of Activision Blizzard’s games could be sold separately or at a higher price on other platforms, such as PlayStation or Switch, making them more expensive for non-Xbox Game Pass users.
• Quality: Some of Activision Blizzard’s games could become better or worse in terms of quality depending on Microsoft’s strategy. For example, some of Activision Blizzard’s games could be improved in terms of graphics, performance, features, and updates by using Microsoft’s technology and resources, making them more enjoyable for gamers. On the other hand, some of Activision Blizzard’s games could be degraded in terms of quality by being rushed, buggy, or incomplete by following Microsoft’s deadlines and demands making them less enjoyable for gamers.
• Content: Some of Activision Blizzard’s games could become more or less diverse and creative in terms of content depending on Microsoft’s strategy. For example, some of Activision Blizzard’s games could be enriched with more stories, characters, modes, and genres by collaborating with other Xbox studios and leveraging Microsoft’s AI and machine learning capabilities, making them more immersive and engaging for gamers. On the other hand, some of Activision Blizzard’s games could be diluted with more microtransactions, advertisements, and generic elements by following Microsoft’s monetization and standardization policies, making them more annoying and boring for gamers.

The deal between Microsoft and Activision Blizzard will have both pros and cons for gamers, depending on their preferences, expectations, and perspectives. Some gamers might welcome the deal as a positive and exciting development that will bring more benefits, opportunities, and innovations to the gaming industry and community. Some gamers might reject the deal as a negative and alarming development that will bring more harms, threats, and limitations to the gaming industry and community. Some gamers might be indifferent or ambivalent about the deal, as they are not sure how it will affect them or their favorite games or platforms.

Conclusion

The Microsoft Activision Blizzard deal is one of the biggest and most impactful deals in the history of gaming. It will significantly change the landscape and dynamics of the gaming industry and market. It will also have a profound impact on the future of gaming and gamers.

The deal will boost Microsoft’s gaming portfolio and strategy, while giving Activision Blizzard a new owner and partner. The deal will also create some benefits and challenges for both companies, as well as for their competitors, partners, regulators, and critics.

The deal will also affect gamers who play Activision Blizzard’s games on different platforms. The deal will also bring some changes to the availability, exclusivity, pricing, quality, and content of these games. The deal will also have some pros and cons for gamers, depending on their preferences, expectations, and perspectives.

The deal is not final yet, as it still needs to clear some regulatory approvals in other countries, such as China, Japan, South Korea, and Brazil. The deal is expected to close by June 2024.

What do you think about the Microsoft Activision Blizzard deal? Are you excited or worried about it? How do you think it will affect your gaming experience? Let us know in the comments below!