Activision Blizzard IncBusinessGame consolesGamingGeneral NewsMicrosoft CorpTrending News Microsoft closes deal to buy Call of Duty maker Activision Blizzard after antitrust fights by Ryan Lee October 15, 2023 written by Ryan Lee October 15, 2023 3 comments Bookmark 44 Microsoft has successfully concluded its acquisition of video game giant Activision Blizzard for a staggering $69 billion. This monumental tech deal, one of the most expensive in history, is poised to have profound implications for the video game industry as a whole. The announcement of the deal’s completion came after Microsoft received final approval from the competition watchdog in Britain, marking a significant reversal of its earlier decision to block the merger. With this regulatory hurdle cleared, Microsoft can now proceed with its ambitious plans. Taking control of studios responsible for iconic games such as Call of Duty, Diablo, and Overwatch represents a strategic move to bolster Microsoft’s Xbox gaming console. Currently positioned as the third-best-selling console behind Sony’s PlayStation and Nintendo, Microsoft aims to leverage its acquisition by integrating Activision titles into its multi-game subscription service, akin to a gaming-oriented Netflix. The nearly 22-month duration it took to finalize this acquisition reflects the concerns expressed by competitors and government regulators. They feared that Microsoft’s expanding portfolio of games might be used to stifle competition. This acquisition is part of a broader trend of industry consolidation, causing some independent game developers to worry about being marginalized as the industry increasingly allocates resources to well-established blockbuster franchises. While the deal has cleared hurdles in many countries, it still faces opposition from the U.S. Federal Trade Commission (FTC). The FTC argues that Microsoft’s consolidation of a major game publisher could create “walled gardens” around its Xbox Game Pass subscription service and the emerging business of on-demand game streaming. The FTC will now face the challenging task of attempting to unravel this acquisition after losing a court battle to halt it. Despite these concerns, Microsoft has consistently defended the acquisition, emphasizing its intention to expand the reach of Activision games across various platforms rather than monopolizing them for its own console. Phil Spencer, CEO of Microsoft’s Xbox division, reiterated the company’s commitment to inclusivity, stating that players on Xbox, PlayStation, Nintendo, PC, or mobile platforms would remain welcome. The approval from the U.K.’s Competition and Markets Authority was expected, especially after preliminary approval was granted last month. The revamped proposal from Microsoft aimed to address concerns about competition and its impact on gamers, particularly in the burgeoning cloud gaming market, where players can stream games to mobile devices and tablets without the need for expensive consoles. While the approval opens new doors for Microsoft, it also tips the balance of power in its favor. George Jijiashvili, a senior principal analyst at tech research and advisory firm Omdia, believes that Microsoft now has a substantial opportunity to shape the future of the gaming industry. This acquisition journey, initiated in January 2022, faced the most resistance from British and American regulators, with Sony also expressing concerns about limiting PlayStation gamers’ access to Call of Duty. To secure U.K. approval, Microsoft agreed to sell European cloud streaming rights for all existing and upcoming Activision games for the next 15 years to French game studio Ubisoft Entertainment. However, the regulator criticized the process and warned against other companies attempting to adopt Microsoft’s tactics. In conclusion, Microsoft’s acquisition of Activision Blizzard represents a monumental shift in the gaming industry’s landscape. It has navigated complex regulatory challenges and is poised to redefine the future of gaming, with implications that will resonate throughout the industry for years to come. Table of Contents Frequently Asked Questions (FAQs) about Gaming Industry AcquisitionWhat is the significance of Microsoft’s acquisition of Activision Blizzard?What prompted the approval of this acquisition after initial regulatory opposition?How does this acquisition benefit Microsoft’s Xbox gaming console?What concerns have been raised about this acquisition?How does Microsoft respond to these concerns?What is the impact of this acquisition on the gaming industry’s future?How has this acquisition affected other gaming companies, like Sony?What concessions did Microsoft make to secure approval in the UK?What does the regulatory process reveal about the gaming industry’s dynamics?More about Gaming Industry Acquisition Frequently Asked Questions (FAQs) about Gaming Industry Acquisition What is the significance of Microsoft’s acquisition of Activision Blizzard? Microsoft’s acquisition of Activision Blizzard is highly significant as it represents one of the largest tech acquisitions in history, totaling $69 billion. This move has the potential to reshape the gaming industry by consolidating major game franchises under Microsoft’s umbrella. What prompted the approval of this acquisition after initial regulatory opposition? The acquisition gained approval after the competition watchdog in the United Kingdom reversed its earlier decision to block the merger. Microsoft’s revised proposal, aimed at addressing competition concerns, played a crucial role in securing approval. How does this acquisition benefit Microsoft’s Xbox gaming console? The acquisition of studios responsible for hit games like Call of Duty and Overwatch is expected to boost Microsoft’s Xbox gaming console, which currently ranks third in sales behind Sony’s PlayStation and Nintendo. Microsoft plans to integrate Activision titles into its multi-game subscription service, similar to a gaming-focused Netflix. What concerns have been raised about this acquisition? Some concerns include worries that Microsoft could use its growing collection of games to stifle competition, potentially sidelining independent game developers. Additionally, the U.S. Federal Trade Commission (FTC) has expressed concerns about creating “walled gardens” around Microsoft’s Xbox Game Pass subscription service and game streaming. How does Microsoft respond to these concerns? Microsoft has consistently defended the acquisition, emphasizing its goal to make Activision games available to a broader audience on various platforms. They have assured players on different consoles and devices that they will remain welcome. What is the impact of this acquisition on the gaming industry’s future? This acquisition is seen as a pivotal moment, with Microsoft gaining substantial influence in the gaming industry. Industry analysts believe Microsoft now has a significant opportunity to shape the future of gaming. How has this acquisition affected other gaming companies, like Sony? Sony and other competitors have closely monitored this acquisition, fearing potential limitations on access to Activision’s games. The industry has seen a trend of major players acquiring game studios to expand their collections and strengthen their market positions. What concessions did Microsoft make to secure approval in the UK? To secure approval in the UK, Microsoft agreed to sell European cloud streaming rights for all current and future Activision games for the next 15 years to French game studio Ubisoft Entertainment. What does the regulatory process reveal about the gaming industry’s dynamics? The regulatory process surrounding this acquisition highlights the increasing scrutiny of industry consolidation and competition concerns. It reflects the broader dynamics of the gaming industry as it evolves and adapts to new market realities. More about Gaming Industry Acquisition Microsoft’s $69B Acquisition of Activision Blizzard Competition Watchdog’s Reversal in the UK Impact on Microsoft’s Xbox Concerns Raised About the Acquisition Microsoft’s Response to Concerns Impact on the Gaming Industry Effect on Competitors Like Sony Concessions Made by Microsoft Regulatory Process and Gaming Industry Dynamics You Might Be Interested In Netanyahu Declares State of War as Hamas Launches Unprecedented Attack on Israel Black Lives Matter Movement Celebrates 10 Years of Activism, Reiterates Call for Defunding Law Enforcement Iowa Authorities Set to Unveil Demolition Strategy for Building That Suffered Partial Collapse Supreme Court Adopts First-Ethics Code Amid Criticism, Yet Lacks Enforcement Mechanism Russia conducts first drone strike on Kyiv in 12 days, but all attempts thwarted Supreme Court rules in favor of Black Alabama voters in unexpected defense of Voting Rights Act acquisitionActivision BlizzardActivision Blizzard IncCompetition ConcernsGame consolesGame StreamingGaminggaming industryGeneral NewsMicrosoftMicrosoft CorpRegulatory ChallengesTrending News Share 0 FacebookTwitterPinterestEmail Ryan Lee Follow Author Ryan Lee is a technology journalist who covers the latest trends and developments in the world of tech. He is passionate about new gadgets and software, and he enjoys testing and reviewing the latest products to hit the market. previous post JPMorgan profit jumps 35%, but CEO says geopolitics and gov’t inaction have led to ‘dangerous time’ next post Microsoft’s Long Journey to Acquire Activision Blizzard: Challenges and Opportunities You may also like Bookmark A woman who burned Wyoming’s only full-service abortion... December 28, 2023 Bookmark Argument over Christmas gifts turns deadly as 14-year-old... December 28, 2023 Bookmark Danny Masterson sent to state prison to serve... December 28, 2023 Bookmark Hong Kong man jailed for 6 years after... December 28, 2023 Bookmark AP concludes at least hundreds died in floods... December 28, 2023 Bookmark Live updates | Israeli forces raid a West... December 28, 2023 3 comments GameChangerCEO October 15, 2023 - 6:58 am 15 yrs Ubisoft deal – smart move, helps ease the heat from UK peeps. Reply GamerGuy87 October 15, 2023 - 9:58 am wowza, $69B fer Activision, that’s mega bucks! M$ wants to rule da game world. Reply TechNerd123 October 15, 2023 - 7:01 pm kudos 2 Microsoft, but what ’bout fair play? Some peeps worry ’bout competition, y’know? Reply Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment. Δ