Microsoft Crop. acquires gaming giant Activision Blizzard Inc. for $69 billion to accelerate its gaming and Metaverse plans.
Activision Blizzard is home to a long list of iconic gaming franchises such as Call of Duty, Overwatch, Candy Crush, World of Warcraft and Tony Hawk’s Pro-Skater. After the deal, its games are set to be added to Microsoft Xbox’s Game Pass service, which has 25 million subscribers.
According to a Jan. 18 report Notice From Microsoft, the company will acquire Activision Blizzard for $95.00 per share at a valuation of $68.7 billion. The deal is set to close in fiscal 2023 and will make Microsoft the third-largest gaming company by revenue behind Tencent, which owns Riot Games, and Playstation developer Sony.
Along with @ATVI_AB, we will usher in a new gaming era that puts gamers and developers first and makes gaming safe, inclusive and accessible to all. https://t.co/fF2Ig3gSfx
– Satya Nadella (@satyanadella) January 18, 2022
Microsoft stated that the acquisition will support the growth of its mobile, PC, console and cloud gaming services, also stating that it will provide “building blocks for the Metaverse.” Microsoft CEO and Chairman Satya Nadella said:
“Gaming is the most dynamic and exciting category of entertainment across all platforms today and will play a key role in the evolution of Metaverse platforms.”
As part of the acquisition, Microsoft stated that Activision Blizzard CEO Bobby Kotick will remain at the helm until the deal closes, with the reins then handing over to Microsoft Gaming CEO Phil Spencer.
spencer welcomed the deal via an Xbox blog post, emphasizing that the company is working to make cloud gaming accessible on as many devices as possible. However, he didn’t mention the Metaverse or NFTs, sectors that have faced backlash from some parts of the gaming community.
“Activision Blizzard’s amazing franchises 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 they already own.” , wrote Spencer.
Some opinions I heard from Activision Blizzard employees today:
– Optimism about management changes and positive culture at several Xbox-owned studios
– Anger at Microsoft for giving Bobby Kotick a big payday and a smooth exit
– Determination to keep organizing
— Jason Schreier (@jasonschreier) January 18, 2022
Nadella was first introduced in November Microsoft’s Metaverse plans via an upgrade to the Teams service and a product called Dynamics 365 Connected Spaces. The “Mesh” upgrade for teams is set to introduce personalized digital avatars and immersive rooms to meet up in the Metaverse later this year.
Nadella also stated at the time that people “can absolutely expect” Microsoft to integrate Metaverse features into Xbox gaming consoles, but didn’t reveal any concrete plans or specific details.
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It’s unclear if Microsoft’s Metaverse game for Xbox will include that Introduction of NFTs, with Spencer stating in November that he considered experimentation in NFTs “more exploitative than entertainment.”
Spencer noted that if the Xbox Store supported NFTs, the company would actively root out any nefarious behavior or content.
Microsoft acquires another giant games company, the monopoly continues to grow, while Sony scrambles for its next power play, the console war is at an all-time high
Meanwhile at Nintendo: pic.twitter.com/adJlrMQZLY
— Colin (@IntroSpecktive) January 18, 2022
The Wall Street Journal reported last week that 100 employees of Microsoft’s augmented reality team have left the company switched to Metaverse competitor Meta (Facebook) last year.
