Activision Microsoft
The $68.7 billion acquisition of Activision Blizzard was one of the biggest business stories of the year, and not only because of the gargantuan price tag involved. The deal also represents Microsoft’s first-ever foray into the world of gaming and marks the most valuable company in the video game industry officially entering the arms race with Sony and Nintendo.
So what has happened since this historic acquisition? Here’s a recap of some of the major events that have transpired in 2022 so far. (For more on how this deal came about, read our article What Happened Since Microsoft Acquired Activision Blizzard).
Everything you Should Know About the Deal
Coming off two impressive earnings reports in a row, Activision Blizzard announced that it has been acquired by Microsoft for $68.7 billion in an all-cash deal. The acquisition was led by Satya Nadella and includes existing Chief Executive Officer Bobby Kotick and Chairman Brian Kelly.
A lot of excitement has surrounded his acquisition because of what it means for both parties involved but also because it’s hard to imagine another high-profile business deal taking place right now. In fact, very few deals have gone through over time and even fewer with such high valuations.
With so much attention on Activision Blizzard right now, you might be wondering what is going on, who is involved, and why exactly did they buy? This post will address everything you need to know about that deal.
What Does this Mean for Gamers?
The acquisition means that Xbox players can expect to see Bungie’s sci-fi shooter Destiny 2 pop up on their console in some way, and Call of Duty fans can probably expect to see another entry into Infinity Ward’s popular military shooter series.
It remains to be seen how all of these games will work together in terms of cross-platform play, however. Additionally, those hoping for a combined Minecraft/World of Warcraft experience have probably not gotten their wish.
Despite being owned by Microsoft (and ultimately making its home on Xbox), Minecraft is still one of Sony’s biggest exclusives, so it isn’t likely to show up anywhere else anytime soon.
While it remains to be seen how Destiny 2, Call of Duty, and Minecraft will all fit into a single ecosystem, fans can rest assured that they’re probably going to have even more ways to play.
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Is this a Good Deal?
There are a few components to consider before coming to an opinion on whether or not an acquisition is good. First, you have to look at how expensive it was for Microsoft. Second, you have to determine what both parties stand to gain from it.
And finally, you have to decide whether or not either party can realize those benefits and how long that might take. That’s a lot of variables—as with most business decisions—but there are some general guidelines for determining if it’s good or bad: Is it too expensive? Did one party pay way more than they should have?
If either party overpaid for a deal, it’s not a good deal. If one party got far more than they should have from their end, that can also be a bad sign.
Finally, any time you get involved with a merger or acquisition, there’s no guarantee that you’ll see returns on your investment in short order. So if you’re unsure about how long something might take to pay off—especially in an acquisition as complex as these two are—it may be better to hold off and watch from afar before throwing your support behind it.
Is it too expensive?: Is it too expensive?
The Future of Call of Duty
Infinite Warfare and Destiny 2 will be interesting. I don’t see either Activision or Microsoft backtracking on what they promised, and that means that Call of Duty: Infinite Warfare will continue to support only Windows 10 systems, and Bungie’s first Destiny 2 PC expansion won’t come to PlayStation 4.
To me, it doesn’t seem as if either company is all that interested in appeasing Sony or its fans – a sentiment you can confirm with an Xbox executive if you dare do so. And why should they? The reality is that both Activision and Bungie will have more resources available to them, which can translate into better games for us all. It may not happen overnight, but I wouldn’t rule out big things in 2022 for either of these games.
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