Microsoft just made another large purchase towards their gaming library. Folks, if you know the legendary gaming studio Activision Blizzard well, prepare for some shocking news. Microsoft has announced they are purchasing the studio for $68.7B (close to $70B). This is the largest acquisition throughout the entire company’s history. Once the deal closes and the legal hurdles go through, all Activision Blizzard staff will report to Phil Spencer. Once the acquisition is finalized, Spencer will be the CEO of Microsoft Gaming, as a big promotion.
What Does This Leadership Change Up Mean?
This whole deal has some irony behind it. Due to the reported toxic work environment nature with Activision Blizzard, Xbox was “reassessing” their relationship. Phil Spencer and other leaders at the time were “disturbed and deeply troubled by the horrific events and actions”, in a memo from Bloomberg. Spencer did not however address the matter of the situation. Here’s where he weighed in:
“As a company, Microsoft is committed to our journey for inclusion in every aspect of gaming, among both employees and players. 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.”Phil Spencer, CEO of Microsoft Gaming
However to clarify any confusion, Kotick will remain as CEO until the acquisition closes to expected by June 30th, 2023. Activision Blizzard staff were notified in an email statement on Tuesday. Kotick will be leaving the company, once the deal closes according to the Wall Street Journal. One thing however that was not mentioned, is if Kotick will dodge his involvement with the company. During the investor’s call meeting with Microsoft with him and Spencer, both of them “couldn’t be more excited for the incredibly exciting future we have ahead and together”.
What Does The Acquisition Detailed?
No matter what your favorite games by Activision Blizzard are, they will be part of Xbox Game Pass and PC Game Pass. Along with upcoming brand new titles and games as well. Some examples for the assets include Call of Duty, Overwatch, World of Warcraft, and more. Speaking of Gamepass, currently, it has more than 25 million subscribers. With more than 400 million Activision Blizzard monthly players in over 190 different countries. Microsoft’s scope of this big announcement is to have 30 internal game studios and additional publishing and E-Sports production entertainment.
The Call of Duty franchise makes up 55% of the company’s operating profit. However, for those who are on Playstation there’s some good and bad news. The good news is Microsoft “still plans on keeping Activision games” for those consoles. The bad news is that Xbox will keep exclusive content towards them. If you are into Cloud Gaming, don’t worry; it will still continue to be supported on your favorite mobile devices.
Just to put the numbers of how large this acquisition is, check out the post down below:
In early 2021 Microsoft fully acquired Bethesda Softworks and their parent company, ZeniMax Media, for $7.5 billion. Without any question as this most mind-blowing purchase, for gaming entertainment and existence of the industry.
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