Activision Joins Microsoft: What It Means for the Future of Gaming

Microsoft’s acquisition of Activision Blizzard for $69 billion is a landmark event in the gaming industry. This article will explore the various aspects of this deal, its impact on the gaming world, and what it means for competitors and consumers alike.

Key Takeaways

  • Microsoft has a massive portfolio of games, including Call of Duty and Candy Crush.
  • Regulatory hurdles cleared in the UK, opening the door for closing the deal.
  • The acquisition could have implications for Apple’s iPhone gaming ecosystem.
  • Microsoft aims to expand its cloud gaming services.
  • The deal has been met with both enthusiasm and scrutiny from industry experts.
Activision Joins Microsoft Deal
Credit: IndiaTimes

The Deal in Detail

Microsoft’s acquisition of Activision Blizzard is not just any deal; it’s a $69 billion deal. This makes it the largest acquisition in the history of the gaming industry. Microsoft owns all developers under Activision Blizzard, from Activision Publishing to King. This adds popular titles like Call of Duty, World of Warcraft, and Candy Crush to Microsoft’s impressive portfolio.

Regulatory Hurdles

Before the deal could go through, it had to pass various regulatory checks. The UK’s Competition and Markets Authority (CMA) was one of the last major hurdles. Initially, the CMA had concerns about the deal affecting competition in the cloud gaming market. However, Microsoft offered concessions, such as divesting the cloud rights of Activision games to French game publisher Ubisoft Entertainment. This move cleared the way for the deal to close.

Impact on Cloud Gaming

Cloud gaming is seen as the next big thing in the industry. Microsoft’s acquisition could have a significant impact here. The CMA’s approval came with the condition that Microsoft would not lock up competition in cloud gaming. This ensures that cloud gaming providers can use non-Windows operating systems for Activision content, reducing costs and increasing efficiency.

Implications for Apple’s iPhone

The deal could also have an impact on Apple’s iPhone gaming ecosystem. With Microsoft gaining a stronger foothold in the gaming industry, Apple may face challenges in keeping its gaming offerings competitive.

Industry Reactions

The acquisition has been met with both enthusiasm and scrutiny. While some see it as a win for Microsoft, others are concerned about what it could mean for the industry. The deal could change the dynamics of the gaming industry, affecting everything from game development to how games are distributed and played.

Future Outlook

Microsoft President Brad Smith expressed gratitude for the CMA’s review and decision, stating that the acquisition will benefit players and the gaming industry worldwide. On the other hand, Activision Blizzard CEO Bobby Kotick told employees in an email that he is excited about the next chapter with Microsoft.

Conclusion

The Microsoft Activision Blizzard deal is a monumental event shaping the gaming industry’s future. The acquisition has been a topic of much discussion and analysis, from regulatory approvals to industry reactions. Seeing how this deal changes the gaming landscape will be interesting as the dust settles.

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