Microsoft buys Activision Blizzard — here's the pros and cons for gamers
Microsoft buys Activision Blizzard — here's the pros and cons for gamers
We're but halfway through January, but the news that Microsoft is planning to buy Activision Blizzard in a $68.7 billion deal is certain to be one of the biggest gaming stories of the year. This out-of-the-blue acquisition could shift the entire manufacture in a major style.
The internet is already rife with stunned reactions, wild speculation and some questionable hot takes. Take a quick glance at social media, and you lot'll encounter everything from analysts feverishly forecasting to fanboys raging (or celebrating) the thought of Call of Duty and Overwatch becoming Xbox exclusives.
According to an email sent to Activision Blizzard employees by embattled CEO Bobby Kotick, the deal should shut sometime in Microsoft'south 2023 fiscal year, which ends on June xxx, 2023. The deal has raised some anti-trust questions, simply information technology's likely to go through without significant delay. After all, companies as big as Microsoft aren't in the habit of announcing purchases that aren't ironclad.
The full ramifications of this middle-wateringly expensive acquisition won't reveal themselves for several years to come. For now, though, we're all trying to adjust to this new world in which Microsoft owns one of the biggest and most (in)famous publishers in the industry.
Every bit the grit starts to slowly settle, many skeptics are already request if this landmark deal is ultimately a good thing for the industry as a whole, and for gamers themselves. We can't definitively respond those questions quite nonetheless. But here'due south the touch on we look Microsoft's buy of Activision Blizzard to have in the coming years.
Xbox is betting large on Game Pass
Microsoft almost certainly has multiple reasons for purchasing Activision Blizzard. When a visitor spends virtually $70 billion in a business transaction, information technology's natural to presume its rationale is multifaceted. However, one thing this deal indicates is that Xbox Game Pass is very much the future of the brand.
In fact, Xbox CEO Phil Spencer has wasted no time in confirming that Activision Blizzard titles will begin appearing on the popular subscription service equally shortly as possible. In the Xbox blog post announcing the bargain, he said: "Upon close, we will offer every bit many Activision Blizzard games equally nosotros tin can within Xbox Game Pass and PC Game Pass, both new titles and games from Activision Blizzard'south incredible itemize."
The service is at present 25 million subscribers strong, and it's clear that its reputation as arguably "the best deal in gaming" is set to stick effectually for the foreseeable future. Spencer also drops Xbox Cloud Gaming by proper noun in the post, challenge the bargain volition allow the squad to "advance" its cloud gaming plans. Wait Blizzard games, in item, to make a existent splash in this surface area. Titles such Hearthstone already have a dedicated mobile player base, which suits cloud gaming perfectly.
It'due south non unreasonable to speculate that the main driver of this purchase is Xbox's connected need for content. Keeping a service like Xbox Game Pass freshly stocked requires a serious investment in new games. While tertiary-political party deals, such as the ones that brought Back 4 Blood or Outriders to Game Pass at launch, are useful, existence able to consistently add original first-party content to your service is more than sustainable in the long run. Blizzard'due south newly announced survival game volition likely terminate up on the service equally well. Run across Netflix'due south continued investment in original content as a case in signal.
With this bargain, Microsoft will be able to bring games in iconic franchises, such equally Call of Duty, Overwatch, Diablo, StarCraft, Crash Bandicoot, Spyro, Tony Hawk'due south Pro Skater, World of Warcraft and Candy Crush to Xbox Game Pass as it sees fit. It practically goes without saying that Xbox beingness able to promote the latest Call of Duty installment, day one on Xbox Game Pass, at no additional toll, is a pretty powerful selling point for the service.
A new way of thinking
Under its current leadership, Activision Blizzard has an obsession with billion-dollar franchises. In fact, in 2021, Activision reverted Toys for Bob, the developer of the excellent Crash Bandicoot 4: It's About Time, into a support studio for the free-to-play battle royale game Call of Duty Warzone.
The same trend has occurred across Activision Blizzard'south recent by, with midrange titles being ignored in favor of a seemingly all-consuming focus on its flagship series, such equally Call of Duty. This acquisition could breathe new life into some currently neglected franchises.
Microsoft has already demonstrated that it can allow offset-political party studios to piece of work on smaller games, such as Double Fine'southward Psychonauts 2. This approach could do good some of the smaller franchises that Activision Blizzard owns.
Don't be surprised if Microsoft greenlights new entries in the Crash Bandicoot, Spyro the Dragon and Tony Militarist'due south Pro Skater serial. We wouldn't say no to another revival of Guitar Hero either.
Robbing its rivals
Of course, the most contentious betoken of this purchase is what it means for Xbox's rivals in the gaming space, primarily PlayStation and Nintendo. Microsoft's stiff commitment to supporting PC gaming means that Activision Blizzard titles will go along to come out on PC. But the future of mega-franchises, such as Call of Duty and Overwatch on the PS5 and Nintendo Switch seems murkier.
The outset half of 2021 saw a like debate after Microsoft'due south acquisition of $vii.v billion Bethesda. Many PlayStation gamers struggled to comprehend the idea of a world where the PS5 doesn't receive The Elderberry Scrolls vi, Fallout 5 and Starfield. But over the summer at E3 2021 Microsoft confirmed that Bethesda'south beginning original IP in 25 years would be coming exclusively to Xbox Series X, Xbox One and PC.
Presumably, this volition be the example for other Bethesda games in the hereafter. (Although, curiously, Ghostwire Tokyo, the next game from Tango Gameworks, a Bethesda-endemic studio, will be a timed exclusive on the PS5. This is due to a bargain struck before Microsoft purchased Bethesda's parent company ZeniMax.) A adjacent-gen port of Skyrim also came out on the PS5 terminal Nov, suggesting that Bethesda hasn't fully closed on the door on Sony's platforms just notwithstanding.
Information technology's still also early to tell if Activision Blizzard volition take the same tack, merely information technology's logical to propose that Call of Duty 2023 being exclusive to Xbox could happen. Considering that the franchise is i of the biggest in gaming, and has had an exclusive marketing deal with Sony since 2015, this would exist a fairly large blow to Sony.
It'south not an exaggeration to suggest that at least some PlayStation gamers could be tempted to switch over to Xbox if Microsoft'south platform becomes the exclusive home of Telephone call of Duty. At least PC-centric franchises, such as StarCraft and Warcraft, should continue without much disruption.
Microsoft must fix Activision Blizzard's mess
Information technology's important to note that this acquisition comes with a fairly unsavory element also. For months now, Activision Blizzard has been mired in controversy after the state of California opened a lawsuit against the company for being a "breeding ground for harassment." Some of the allegations against college-ups within the publisher edge on the unprintable, and CEO Bobby Kotick has received a torrent of criticism for his hand in creating a toxic work environment, for women in detail.
The problems don't stop there, either. Employees at Raven, a evolution studio that works on the Call of Duty franchise, have recently staged a walk-out in protestation against the mistreatment of quality assurance testers. It'due south fair to say at that place are a lot of practices within Activision Blizzard correct now that the visitor needs to terminate.
All of these allegations are so serious that they accept contributed to the visitor's share price falling a dramatic 27% over the by six months. Even so, Microsoft still purchased the visitor at a significantly higher share price than its current market value.
Prominent figures from beyond the gaming manufacture have condemned the visitor culture at Activision Blizzard, including Xbox's ain Phil Spencer, and calls for Kotick to resign have been loud. For at present, at least it seems that Kotick volition continue to lead Activision Blizzard, though. A Microsoft PR confirmed to Bloomberg's Jason Schreier that Kotick "volition go on to serve as CEO…Once the bargain closes, the Activision Blizzard business volition written report to Phil Spencer."
Some gamers are already pushing a narrative that Microsoft has stepped in to essentially salve Activision Blizzard from itself. While this idea is peradventure a little fanciful (the acquisition is nevertheless a business conclusion starting time and foremost), Microsoft now has a serious duty of responsibleness to help clean up the company's act and restore Activision Blizzard's reputation.
Spencer appears to acknowledge this in the conquering announcement article. He said: "Every bit a company, Microsoft is committed to our journey for inclusion in every attribute of gaming, amid both employees and players. Nosotros're looking forrad to extending our culture of proactive inclusion to the great teams across Activision Blizzard."
Is Microsoft finished for now?
Throughout 2021, in that location were enough of rumors swirling that Microsoft might be looking to scoop up some other major player in the games industry. While nearly companies might take a pause from purchasing after spending $7.5 billion (to purchase ZeniMax), it seems that Microsoft was just getting started.
Microsoft's agreement to purchase Activision Blizzard is now the biggest acquisition in gaming history, and comes 8 days later Take-2 Interactive purchased Zynga in what had been a record-breaking $12.7 billion deal. That record sure didn't stand long. While the discussions about this deal volition rage on for weeks to come, some analysts are already questioning if Microsoft is finished, at least for now.
Internet whispers concluding yr suggested that Microsoft might have been considering buying the likes of Warner Bros. Interactive Entertainment (although that deal would have been complicated, every bit Warner Bros. doesn't ain all of its IP). EA was some other potential purchase.
Curiously, earlier this calendar month, Xbox appear that upcoming co-op shooter Rainbow Six Extraction would exist launching on Xbox Game Pass and that Ubisoft'due south ain subscription service, the creatively titled Ubisoft Plus, would come to Xbox platforms at some signal in 2022. These deals might indicate a close relationship. Could the French publisher be Microsoft's next target?
Based on the time between the Bethseda purchase and the Activision Blizzard purchase, around 15 months, we can assume that another sizeable acquisition isn't in the immediate pipeline. But afterwards a bargain similar this, it's hard to know where Microsoft will draw the line.
It's clear that Microsoft is very keen to invest meaning money into its Xbox division. Don't forget that Xbox Game Pass volition proceed to need a steady stream of compelling content to retain and grow its subscriber base. This could mean another significant investment in a major publisher — or perhaps Sony will strike dorsum with an acquisition of its own. Only time volition tell.
Source: https://www.tomsguide.com/opinion/microsoft-buys-activision-blizzard-is-this-a-good-thing-for-gamers
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