Nearly 21 months after announcing the nearly $70 billion acquisition in January 2022, Microsoft officially welcomes video game developer Activision Blizzard King to the Xbox family. Best known for mega franchises such as Call of Duty, Warcraft, Diablo, and Candy Crush, the deal's approval marks the end of a lengthy and tumultuous process.
Earlier this year, the United Kingdom's Competition and Markets Authority (CMA) staunchly objected to the deal. An investigation concluded that the merger would lead to, “higher prices, fewer choices, or less innovation for UK gamers.” The biggest hurdle revolved around cloud-based gaming; the CMA believed that Microsoft's influence would be too large. As a result, Microsoft and the CMA negotiated the terms of the deal. Gaming publisher Ubisoft, best known for the Assassin's Creed and Far Cry games, will offer Activision's content in the cloud gaming market.
“We delivered a clear message to Microsoft that the deal would be blocked unless they comprehensively addressed our concerns and stuck to our guns on that,” says Sarah Cardell, Chief Executive of the CMA. “With the sale of Activision's cloud streaming rights to Ubisoft, we've made sure Microsoft can't have a stranglehold over this important and rapidly developing market. As cloud gaming grows, this intervention will ensure people get more competitive prices, better services and more choice.” The UK CMA was the only government body to object to the deal.
The United States Federal Trade Commission held a hearing but ultimately approved the acquisition. “The FTC pointed to Microsoft's record of acquiring and using valuable gaming content to suppress competition from rival consoles, including its acquisition of ZeniMax, parent company of Bethesda Softworks (a well-known game developer),” Holly Vedova, Director of the FTC's Bureau of Competition said in a statement in December 2022. “Microsoft decided to make several of Bethesda's titles including Starfield and Redfall Microsoft exclusives despite assurances it had given to European antitrust authorities that it had no incentive to withhold games from rival consoles.”
A hearing was held in 2023 to block the deal, but ultimately, the FTC approved it.
Microsoft Reacts To Officially Acquiring Activision Blizzard King
“I've long admired the work of Activision, Blizzard, and King, and the impact they've had on gaming, entertainment, and pop culture,” says Phil Spencer, CEO of Microsoft Gaming. “Whether it was late nights spent playing the Diablo IV campaign with friends from start to finish, gathering the entire family in the rec room for our weekly Guitar Hero night, or going on an epic streak in Candy Crush, some of my most memorable gaming moments came from experiences their studios have created. It is incredible to welcome such legendary teams to Xbox.”
Spencer also expressed excitement about bringing key Activision Blizzard titles to Xbox Game Pass, the popular subscription service featuring a library of video games, including titles under the Microsoft Xbox brand. Activision Blizzard games are expected to arrive on Game Pass starting in 2024. It will not include recently released titles like Diablo IV or the newest entry in the Call of Duty series, Modern Warfare III.
Much speculation has been made about whether or not Activision Blizzard games will remain available on multiple consoles or if they'll become Xbox exclusive. Spencer has repeatedly stated his intentions to keep Call of Duty multiplatform. However, the picture is less clear when it comes to other games. For now, all we have to go on is the following statement:
“Whether you play on Xbox, PlayStation, Nintendo, PC or mobile, you are welcome here – and will remain welcome, even if Xbox isn't where you play your favorite franchise. Because when everyone plays, we all win. We believe our news today will unlock a world of possibilities for more ways to play.”
The Future of Activision Blizzard King Leadership
2024 will also see the departure of longtime Activision CEO Bobby Kotick. “I have long said that I am fully committed to helping with the transition,” Kotick said in a letter to all Activision Blizzard King employees. “Phil [Spencer] has asked me to stay on as CEO of ABK, reporting to him, and we have agreed that I will do that through the end of 2023. We both look forward to working together on a smooth integration for our teams and players.”
The controversial video game executive has been Activision's CEO since 1991. Kotick recently came under fire in 2021 for allegations of a toxic work environment, misogyny, and harassment at various Activision Blizzard studios. He also faces allegations of union busting and unfair labor practices, as well as regular layoffs and studio closures despite Activision's record profits. Employees and gamers have long petitioned for Kotick to resign.
This article was produced and syndicated by Wealth of Geeks.
