Microsoft has successfully concluded its acquisition of the renowned video game-maker, Activision Blizzard, in a $69 billion deal, marking one of the most expensive tech acquisitions in history. This acquisition is set to have significant ramifications for the video game industry.
The announcement of the deal’s completion came seven hours after Microsoft received final approval from the UK’s competition watchdog. This reversal of its earlier decision to block the merger removed the last obstacle for the transaction.
With this acquisition, Microsoft gains control over the studios behind popular titles like Call of Duty, Diablo, and Overwatch, providing a significant boost to its Xbox gaming console, which currently ranks third in sales, trailing behind Sony’s PlayStation and Nintendo. Microsoft also has grander ambitions to integrate Activision’s titles into its multi-game subscription service, akin to a Netflix for video games.
The nearly 22 months taken to finalize this deal underscored concerns raised by rivals and government regulators who feared that Microsoft could utilize its growing collection of games to stifle competition. This acquisition forms part of a broader trend of industry consolidation, raising concerns among independent game developers who fear being marginalized as the industry focuses its resources on blockbuster franchises with a proven track record of success.
Despite the UK’s Competition and Markets Authority’s blessing, which was expected after preliminary approval was granted last month, Microsoft will sell European cloud streaming rights for all current and new Activision games released over the next 15 years to French game studio Ubisoft Entertainment.
The deal’s strongest resistance came from British and American regulators, and Sony expressed concerns that it could restrict PlayStation gamers’ access to Call of Duty. The U.S. Federal Trade Commission (FTC) remains in opposition, arguing that this merger could create “walled gardens” around Microsoft’s Xbox Game Pass subscription service and the emerging business of on-demand game streaming. Although the FTC lost a court battle seeking to pause the merger, they continue to pursue legal action.
Microsoft, however, has maintained that the acquisition is beneficial for the gaming industry, emphasizing its goal to make Activision’s games more widely accessible across various platforms, regardless of the preferred gaming console.
The completion of this colossal deal positions Microsoft as a major player in the gaming industry, with significant influence over its future. While Sony’s PlayStation maintains its industry leadership, Microsoft’s strategic acquisitions, such as ZeniMax Media and Bethesda Softworks, have bolstered its game catalog and appeal to gamers.
The acquisition of Activision Blizzard reflects Microsoft’s determination to compete with rivals and shape the future of the gaming industry. The repercussions of this deal will undoubtedly reverberate throughout the world of video games.
Carlo Juancho FuntanillaFrontend Developer, WordPress, Shopify
Contributing Editor
AMA ACLC San Pablo
