Microsoft and Activision Blizzard are two of the biggest names in the gaming industry. While Microsoft single-handedly set up the Windows PC gaming ecosystem, Activision Blizzard has been responsible for creating some of the best trend-setting games of all time (looking at you, Call of Duty, and Overwatch).
But did you know that a Microsoft Activision Blizzard acquisition is taking place with a billion-dollar deal? Keep reading to learn more about why Microsoft buys Activision Blizzard.
Microsoft In Gaming
When it comes to gaming, Microsoft is by far one of the most prolific gaming console and title developers. In addition, Microsoft is the owner of Xbox, one of the best gaming consoles, and the primary competitor to Sony’s Playstation.
Over the years since Microsoft forayed into creating gaming titles, it has made numerous gaming franchises. From racing to action to role-playing, Microsoft has done it all.
Halo is one of the most popular gaming franchises created by Microsoft. This FPS (First Person Shooter) video game was the launching game for the original Xbox console. When this game was released, it became an instant hit, providing a boost to multiplayer games and the eSports scene we know today.
Microsoft’s most successful gaming franchises include Gears of War, Forza, Psychonauts, Sunset Overdrive, Microsoft Flight Simulator, and more. All these games are mostly exclusive to the Xbox consoles, with a vast majority of them coming to Windows PCs.
Activision Blizzard In Gaming
Activision and Blizzard were actually two different gaming companies before. Their merger occurred in 2008 when Activision bought Vivendi Games, the parent company of Blizzard.
Activision
Activision is a gaming company that was founded in 1979 by unsatisfied Atari employees. This company specializes in hiring game-developing studios to develop games for them and publish them under their own belt.
Activision became a household name in gaming after the release of the seminal Call Of Duty franchise. This FPS military gaming series got its biggest boost in 2007 with the release of Call of Duty 4: Modern Warfare. The game became a cult classic as one of the best FPS games of all time. It has spawned countless sequels, with one COD game coming out yearly.
Some other famous games released by Activision include Tony Hawk’s Pro Skater, Destiny 2 (Bungie), Sekiro: Shadows Die Twice (FromSoftware), and more.
Blizzard
Blizzard made a name for itself when it first released World of Warcraft. This sprawling open-world RPG game became an instant hit, paving the way for an era of MMORPG (Massively Multiplayer Online Games) to usher in.
WoW was unlike any other game in the past. Blizzard decided to capitalize on WoW, releasing a card game based on Hearthstone. The success and popularity of this online card game were again a trendsetter.
Blizzard’s biggest success was Overwatch, a team-based competitive FPS game. While Call of Duty might have set the groundwork for realistic FPS games, Blizzard set the trend for hero-based shooters. Here, you picked special characters with their own unique abilities. This gave rise to team compositions and the tactical team plays, unlike any other game.
Why Is The Microsoft Activision Blizzard Merger Taking Place?
According to reports, Microsoft plans to expand its Xbox Game Pass – the monthly subscription-based gaming service. If you subscribe to the Xbox Game Pass, you will get to play all the games in its library – similar to watching movies and series on Netflix.
This decision came after Microsoft’s number of subscribers was still lower than the number expected. After much brainstorming, the main reason for its moderate success was because of its limited availability of titles.
Therefore, to increase the number of games in its arsenal and get in more subscribers, Microsoft buying Activision became a reality. If you want to know how much did Microsoft buy Activision for, then Microsoft buys Activision Blizzard for a whopping $69 billion. This is one of the biggest buyouts in gaming history.
How Impactful Will This Merger Be?
So far, gamers and regulators have voiced several opinions about this merger. Many claim this merger has several loopholes, especially regarding games available on Playstation consoles. Since Sony’s Playstation is the primary competitor and rival of Xbox, Microsoft will soon discontinue releasing Activision Blizzard games for PlayStation.
Here, the primary series under scrutiny is, of course, Call of Duty. Being one of the biggest FPS gaming franchises of all time, this game series has a massive Playstation player base. While Microsoft has agreed to release CoD games on Playstation for the next three years, Sony has voiced several opinions. The primary criticism was that CoD was one of the biggest money-making franchises for PlayStation, and removing it would incur Sony lots of losses – dissociating its player base.
This is the reason why international trade regulators are taking their time in setting up the deal. However, Microsoft recently released several articles on its website explaining why the Microsoft Activision acquisition is necessary. This received a lot of backlash from the community and the regulators as well.
FAQ (Frequently Asked Questions):
People have been asking many questions on the internet regarding the Microsoft Activision buyout. Some of the answers to these questions are:
Ans – Yes, the Microsoft Activision deal is currently under negotiations. Here, Microsoft CEO has tweeted online that the agreement has been finalized while ongoing talks. However, the official takeover is expected to be completed by the end of the current fiscal year (April 2023).
Ans – Since Microsoft is buying Activision Blizzard for $69 billion, it will get full ownership of all titles released by Activision Blizzard. This includes famous gaming franchises like Call of Duty, World of Warcraft, Hearthstone, and Overwatch.
Ans – One of the most interesting trading aspects of the entire Microsoft Activision deal is that Microsoft is not a public company. Therefore, all the shareholders will lose their stocks in Activision Blizzard. Here, the stockholders will have the option to convert and cash in their stocks.
Ans – After the Microsoft Activision buyout, COD fans have been nervous about the franchise’s future. Therefore, many PlayStation gamers have raised a concern as to whether all Activision Blizzard titles will become Microsoft Xbox and Windows PC exclusives or not. However, Microsoft has responded that they will still release franchises with Playstation games for upcoming Playstation consoles.
Conclusion
Even though Microsoft buys Activision Blizzard for $69 billion, it will severely impact the gaming industry. In order to add more games to the growing library of Xbox Game Pass games, Microsoft has decided to acquire Activision Blizzard.
The main concern is disputed with PlayStation. Since several Activision games were Playstation exclusive, they might now become Xbox exclusive. This clash between the two console giants can lead to some interesting events. Therefore, keep an eye on Microsoft Activision, which will be finalized by the end of this fiscal year (April 2023).
READ MORE:
Sofia
Debamalya Mukherjee