Microsoft Buys Activision Blizzard

Announcement: Activision Blizzard has been acquired by Microsoft in a $68.7B deal. “Creators of Call of Duty, Warcraft, Candy Crush, Tony Hawk, Diablo, Overwatch, Spyro, Hearthstone, Guitar Hero, Crash Bandicoot, StarCraft, and more join Team Xbox.” – Phil Spencer on Xbox Wire

DavPoint: The big list of studios includes Blizzard Entertainment, Beenox, Demonware, Digital Legends, High Moon Studios, Infinity Ward, King, Major League Gaming, Radical Entertainment, Raven Software, Sledgehammer Games, Toys for Bob, Treyarch and every team across Activision Blizzard.

My Take: I thought it was big news when Microsoft Bought ZeniMax for $7.5B back in March, 2021. Having game franchises like Doom, Wolfenstein, Fallout, and Elder Scrolls under the Xbox banner was exciting, and Xbox made consumer friendly moves to add many of those games to the Xbox Game Pass library while maintaining their multiplatform availability. This increased the value of subscribing to Xbox Game Pass, but kept the games and communities built around them relatively unchanged. There was some speculation on where unfinished games like Starfield and Elder Scrolls 6 would land, and eventually, Xbox announced that they will be exclusive to the Xbox platform (which includes Xbox, PC, and Cloud gaming).

Phil Spencer points out that (Xbox) “will offer as many Activision Blizzard games as we can within Xbox Game Pass and PC Game Pass, both new titles and games from Activision Blizzard’s incredible catalog.” This wording matches the ZeniMax announcement, so my guess is that all current games and games in development will maintain their platform alignments, but nothing will prevent future games from becoming exclusive to the Xbox platform. Speaking of platforms, Spencer further commits this deal will “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 you already own. Activision Blizzard games are enjoyed on a variety of platforms and we plan to continue to support those communities moving forward.”

Scandals and Speculation: Nothing happens in a vacuum, so it’s hard not to wonder how much this acquisition was influenced by the claims of employees being mistreated at Activision Blizzard. In spite of the Lawsuit filed in California against Activision Blizzard in July of 2021, several key studio heads and game directors leaving either in protest or in disgrace, and numerous walkouts and protests, many feel the demands of the employees are left unsatisfied. This has left some games like Overwatch 2 and Diablo IV in the lurch, and rumors suggest that ongoing support for games like World of Warcraft is suffering. Meanwhile, Phil Spencer has been asking for more inclusivity and safety for both gamers and game developers in recent months, and went as far as admitting that Xbox was reevaluating their relationship with Activision Blizzard due to their unfriendly work culture.

DavPoint: For a more detailed breakdown of the lawsuit and actions taken before and after, check out this Activision Blizzard Lawsuit Timeline written by IGN.

I am encouraged by Spencer addressing these concerns in his acquisition announcement, albeit fairly broadly: “As a company, Microsoft is committed to our journey for inclusion in every aspect of gaming, among both employees and players. We deeply value individual studio cultures. We also believe that creative success and autonomy go hand-in-hand with treating every person with dignity and respect. We hold all teams, and all leaders, to this commitment. We’re looking forward to extending our culture of proactive inclusion to the great teams across Activision Blizzard.”

What Happens Next: Subsequent announcements have suggested that Bobby Kotick will stay CEO of Activision (in spite of previous protests and demands that he step down) and the entire deal will likely be finalized by summer of 2023. The games included in the ZeniMax acquisition were not moved to Xbox Game Pass until that deal was finalized, so I suspect we won’t see a lot of changes until next year. I am curious to see if some of those game directors will return, especially if Microsoft can bring about true culture change at Activision Blizzard, and if this acquisition will bolster budgets and improve game dev cycles across the board. Again, changes like that will not be felt immediately, but I am hopeful! What an exciting time to be a gamer!