Microsoft Acquires Gaming Giant Activision
Those who have been playing games for a long time will know that Activision is one of the biggest names in the business. This is because their IP is one of the biggest video game series out there: Call of Duty. This particular series has likely been a major part of the formative years of most teens across the world given how popular it is with that demographic. To say that Call of Duty and subsequently Activision is massive is an understatement. All one must do is mention the title ‘Warzone’ to someone and they’ll likely have heard of it as it is a spin-off from the series that has become incredibly popular lately.
There is no doubt that Activision has grown immensely since the company was first created, which is similar to the growth that gaming has seen too. The meteoric rise of the industry mirrors other industries in entertainment, such as gambling. The presence of online casinos in PA and other places in America has seen the country become an emerging market that is contributing to the growth of the industry globally. It is not surprising that Activision is based in America, considering the popularity of gaming in the country. What is surprising is that it has just come out that Microsoft has purchased the mega gaming company for a fee of nearly $70 billion.
This staggering figure makes the deal the largest in gaming history and it also breaks Microsoft’s previous record of $26 billion, which was the amount paid for the acquisition of LinkedIn in 2016. However, it may also surprise some to learn that the deal is not just the biggest in gaming history, but it is also the biggest in tech history. For reference, this record was previously held by Dell who bought out EMC in 2015 for $67 billion.
It should now be clear that Microsoft is serious about dominating the gaming sector through its console brand, Xbox and through its Windows PC users. The deal will ensure that the company becomes the world’s third-biggest gaming company, just behind Tencent and Sony.
When the context of this deal is understood, the timing of it begins to make sense. Those who have been following along with the latest industry news will know that Activision has been in a sticky situation as of late. Their biggest moneymaker, Call of Duty, is being critiqued by many for being unplayable, which is a big enough situation in its own right. However, Activision Blizzard has also been the subject of multiple sexual misconduct allegations, as well as discrimination. This has seen the company’s stock plummet of late, which is likely why Microsoft thought it would be a good time to agree to a deal.
It is clear that Microsoft has come out as the winner out of the two parties though. Activision owns multiple profitable IPs, such as Call of Duty, World of Warcraft, and Candy Crush, all of which are now owned by Microsoft. This will please Call of Duty gamers especially as they look forward to what their series will now look like under new management.