news business Microsoft buys Activision Blizzard: Xbox, soon the almighty master of video games?
It’s unprecedented. Without warning and following the Wall Street Journal leaks, Microsoft has just announced the acquisition of Activision Blizzard (World of Warcraft, Call of Duty) for a record $69 billion. Pending the completion of the operation by the relevant authorities, Xbox is on the verge of becoming the undisputed champion of American video games. A big event.
Christmas has been two weeks, and yet Microsoft has just handed over a huge gift. Its value: $69 billion, the present in question: Activision Blizzard, one of the most lucrative video game companies in the world, with a very powerful intellectual property portfolio (Candy Crush, Call of Duty, World of Warcraft). from the crowd, it is the largest acquisition in the history of the industry. Well ahead of Microsoft’s Bethesda (The Elder Scrolls, Fallout, Starfield) last year, nearly $8 billion. And the takeover of Zynga (FarmVille) by publisher Take-Two (GTA) in early January, valued at $12 billion.
Formalized, not completed
Crazy sums, ready to turn anyone’s head. But probably not the Federal Trade Commission, whose job it is to evaluate anti-competitive business practices in the United States. Nowadays, Microsoft’s acquisition of Activision Blizzard has yet to be completed, and theoretically still has a chance of not being successful. In one communicates, says Bobby Kotick, the company’s current CEO, that this crucial step will take place in June 2023. Delays of this nature are commonplace: seventeen months for Disney’s acquisition of Fox.
“This market undeniably raises antitrust issues” notice On Twitter, journalist Jason Schreier, essentially in the middle, invoked a “seismic agreement”. When it comes to an end This takeover could make Microsoft the biggest player in American video games, even stronger than companies like Electronic Arts (FIFA), Epic Games (Fortnite) and Take-Two. Microsoft has had to deal with anti-competitive laws in the past, but in the area of computing for Windows. In the United States, such a case in the field of video games would apparently be unprecedented.
Microsoft says it will be the “third-biggest gaming company by revenue behind Tencent and Sony” after the deal closes – The edge, January 18, 2022
Before the official end of the mission “Activision Blizzard and Microsoft Gaming will continue to operate independently” precise Phil Spencer, Head of Xbox, on the brand’s blog. Furthermore, the man in a Embassy forwarded from VGC that the previous CEO of the company, which was bought at the price of gold, Bobby Kotick, will remain in his post for the time being. “Once the deal closes, Activision will report back to me”. Not sure if Bobby Kotick is still out in June 2023 is therefore the focus of the sexual harassment scandals at his company, which Spencer incidentally denounces.
An upgraded Game Pass
What is certain, however, is the impact that the agreement could have on Microsoft, especially in terms of its clout in terms of development. After the Bethesda takeover Xbox and its 23 studios are expected to welcome a dozen more teams, including those that deliver a component of Call of Duty every year, but also others, more mainstream, such as Toys For Bob and Vicarious Visions, two studios that recently revived the famous Crash Bandicoot. More than just manpower, Xbox offers above all an impressive catalog of intellectual property: Tony Hawk, Warcraft, Candy Crush, Diablo, Overwatch, Spyro, Hearthstone, Guitar Hero, StarCraft, etc.
Big names perfect for Xbox Game Pass, which just surpassed 25 million subscribers, Microsoft announced in its press release. Phil Spencer says he wants to include “as many Activision Blizzard games as possible” in the offering, regardless of whether it is “new titles” or well-known games. Call of Duty, Overwatch 2, Xbox Network Exclusive? Yes and no : “Microsoft intends to continue developing certain Activision games for PlayStation consoles (release – ed.), but will also retain some exclusive content for Xbox.” Details from a source close to the file told Bloomberg. “Networks”, because let’s not forget xCloud, Microsoft’s streaming solution. The company will use this acquisition to “accelerate its plans in this area,” Spencer said. Already almost unbeatable, Xbox Game Pass is only going to get stronger, even untouchable.
Through Actually, journalist igamesnews.com
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