After months of growing legal battles and losing some of its top talents, Activision Blizzard may be getting a much-needed break. Microsoft is sweeping in to acquire the game developer for a whopping USD$68.7 billion. The acquisition will make Microsoft the third biggest gaming company behind Tencent and Sony.
Activision Blizzard’s acquisition will give Microsoft access to IPs from Blizzard, Activision and King studios. This includes titles like Diablo, StarCraft, Warcraft and Overwatch in Blizzard’s portfolio; Candy Crush in King’s portfolio; and Call of Duty, Destiny and more in Activision’s portfolio. These game IPs are apparently making their way to XBOX’s GamePass sometime after the acquisition has been finalised.
While the acquisition may seem like a big win, it may not be in the best interest of gamers as we’ve already seen Microsoft use acquisitions to bolster its exclusive games catalogue. Most recently, the company acquired ZeniMax which owns popular game studio Bethesda. In the wake of that acquisition, Bethesda has already announced that the latest instalment of one of its most popular IPs, Elder Scrolls VI, will be exclusive to XBOX. While it’s still too early to say if games like Diablo and Overwatch will be exclusive to Microsoft, it is something that gamers should be wary of.
In addition to this, the acquisition of Activision Blizzard isn’t addressing the underlying issues which have been plaguing the company. In fact, in its announcement, Activision Blizzard has confirmed that embattled CEO, Bobby Kotik, will continue as the CEO for now. Activision Blizzard has had a tumultuous 2021 plagued with workplace issues that have come to light thanks to multiple lawsuits.
However, Microsoft’s new CEO of Gaming, Phil Spencer, mentions in his email to employees, “Microsoft is committed to our journey for inclusion in every aspect of gaming, among both employees and players. We deeply value individual studio cultures. We also believe that creative success and autonomy go hand-in-hand with treating every person with dignity and respect. We hold all teams, and all leaders, to this commitment.”. Hopefully, this holds true when it comes to dealing with their latest acquisition’s colourful state beyond the close of the acquisition. Beyond the acquisition, Activision Blizzard will be reporting to Phil Spencer which leaves many of the concerns raised by both gamers and Activision Blizzard’s developers at his doorstep.
That aside, Microsoft’s acquisition of Activision Blizzard is a huge development in the gaming industry as a whole. It could be the jolt the industry needed to push it forward to adapt to a newer approach to gaming experiences including VR. In fact, in their statements, Microsoft’s leadership has indicated that their vision of the now trending, “metaverse”, is one that is populated by creative content that can be consumed at any time.
Microsoft’s acquisition comes at a crucial point in the development of some of Activision Blizzard’s most anticipated titles including the much anticipated Diablo IV and Overwatch 2 and Diablo’s foray into mobile, Diablo Immortal. Having had such a tumultuous year, the games are in need of an infusion of quality leadership and talent.
The new acquisition is pending the approval of regulators and the shareholders of both companies. Microsoft’s acquisition of Activision Blizzard is expected to close by the end of Microsoft’s fiscal year in June 2023.
