It has been a few days since the industry shaking announcement was made – Microsoft will acquire gaming giant Activision Blizzard for almost $69 billion and that means major additions (games, intellectual properties, game development talents, technologies and more) coming to Team Xbox for gamers to enjoy within the Xbox ecosystem.
This is easily the most unbelievable and most intriguing video game business development since the Xbox-Bethesda deal (deal completed in 2021). Unbelievable because nobody (other than the Microsoft and Activision Blizzard executives) saw this deal would happen at all even though Team Xbox made clear it would push on with acquisitions. Intriguing because Activision Blizzard itself has been controversial in very negative ways (for references, click here, here and here) which brings major challenges for Team Xbox to solve once the acquisition has been completed.
To begin with, let’s take a look at the reactions and analysis of Xbox YouTubers and gaming media in the videos below…
And now, for even greater perspective, posted below is an excerpt from the official Xbox-Activision-Blizzard announcement on Xbox.com written by none other than Phil Spencer himself and he now has a new work title…CEO of Microsoft Gaming. Now pay close attention to the details below. Some parts in boldface…
As a team, we are on a mission to extend the joy and community of gaming to everyone on the planet. We all know that gaming is the most vibrant and dynamic form of entertainment worldwide and we’ve experienced the power of social connection and friendship that gaming makes possible.
As we pursue that mission, it is incredibly exciting to announce that Microsoft has agreed to acquire Activision Blizzard.
Over many decades, the studios and teams that make up Activision Blizzard have earned vast wellsprings of joy and respect from billions of people all over the world. We are incredibly excited to have the chance to work with the amazing, talented, dedicated people across Activision Publishing, Blizzard Entertainment, Beenox, Demonware, Digital Legends, High Moon Studios, Infinity Ward, King, Major League Gaming, Radical Entertainment, Raven Software, Sledgehammer Games, Toys for Bob, Treyarch and every team across Activision Blizzard.
Until this transaction closes, Activision Blizzard and Microsoft Gaming will continue to operate independently. Once the deal is complete, the Activision Blizzard business will report to me as CEO, Microsoft Gaming.
Upon close, we will offer as many Activision Blizzard games as we can within Xbox Game Pass and PC Game Pass, both new titles and games from Activision Blizzard’s incredible catalog. We also announced today that Game Pass now has more than 25 million subscribers. As always, we look forward to continuing to add more value and more great games to Game Pass.
The fantastic franchises across Activision Blizzard will also accelerate our plans for Cloud Gaming, allowing more people in more places around the world to participate in the Xbox community using phones, tablets, laptops and other devices you already own. Activision Blizzard games are enjoyed on a variety of platforms and we plan to continue to support those communities moving forward.
As a company, Microsoft is committed to our journey for inclusion in every aspect of gaming, among both employees and players. We deeply value individual studio cultures. 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. We’re looking forward to extending our culture of proactive inclusion to the great teams across Activision Blizzard.
Around the world, there is no more exciting venue for fun and connection than video games.
Wow! That was once massive and strategically worded announcement there by Microsoft Gaming CEO Phil Spencer! Not only does this great development prove that Microsoft continues to go all-in on gaming through Team Xbox, it also shows partially what the long-term video gaming business will be for them, Activision Blizzard’s teams and the consumers who collectively own game consoles, desktops, laptops, smartphones and other devices with access to the Xbox network and ecosystem. The acquisition, once approved, will help Team Xbox gain a strong presence in the lucrative mobile gaming industry.
Very clearly, the business of video games is no longer limited to game consoles, software and online gaming networks which is something that Japan-based Sony and Nintendo should realize. The console-only approach of business is itself a hindrance on reaching out to billions of people who play games, as well as an obstacle to achieve massive business growth not for the short term but for the long term.
The most recent games of Activision Blizzard franchises like Call of Duty, Starcraft, Warcraft, Crash Bandicoot and Spyro have been released on game consoles and Windows PC. There is also the mobile gaming titan Call of Duty: Mobile under Activision. These facts proves that the acquisition by Microsoft makes business and technical sense.
When it comes to Xbox gaming, I believe that in due time, future installments of established Activision Blizzard game franchises as well as brand new intellectual properties will become Xbox-exclusive after the completion of the acquisition and as long as Activision Blizzard has no signed agreements with PlayStation or Nintendo related to console exclusivity of games. What is the basis for this? Take a look back at what Phil Spencer said before…
“We have games that exist on other platforms, and we’re going to support those games on the platforms they’re on. There are communities of players. We love those communities and will continue to invest in them. And even in the future, there might be things that have either contractual things, or legacy on different platforms, that we’ll go do. But if you’re an Xbox customer, the thing I want you to know is this is about delivering great exclusive games for you that ship on platforms where Game Pass exists, and that’s our goal, that’s why we are doing this,”
Going back to Spencer’s Xbox-Activision-Blizzard announcement, he specifically confirmed that Xbox Game Pass (XGP) subscribers has reached 25 million already, and things will only get exciting as more Activision Blizzard games will be added into the service! Expect lots of Call of Duty games, Crash Bandicoot games, Tony Hawk games and more! Xbox Game Pass will become even more varied with its game selection from the Xbox game studios and that means the subscription service will become even more attractive, even essential, to gamers who want great value for their money.
Apart from Activision Blizzard’s games and intellectual properties, Microsoft will also inherit the many employees working under AB’s game studios as well as their proprietary technologies (game engines, rendering software and the like) and have them integrated into Xbox Game Studios.
Right now, there is still a long road ahead for the Xbox-Activision-Blizzard deal to endure first heading towards competition. Don’t forget that the deal is still subject for review by the regulators. The people who hate Xbox and even Activision Blizzard out there can always rant a lot, complain a lot and spew lots of nonsense but nothing changes the fact that the Xbox-Activision-Blizzard deal does not really constitute a monopoly in the video game industry. The said industry is much bigger than most people know and there are several other game publishers out there whose combined market values heavily outweigh Microsoft, Activision Blizzard and even Bethesda combined. As for the internal side of things, I believe that Microsoft has what it takes to end the negativity within Activision Blizzard, solve the related problems and straighten things out. It will take a few years but I believe improvements will happen. By then, more entertainment content will flood the Xbox ecosystem as well as Xbox Game Pass!
Truly now is a great time to be part of the Xbox ecosystem as more great games will be coming in! Personally, I am looking forward to play Activision Blizzard’s games on my Xbox Series X through Xbox Game Pass!
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