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Microsoft has acquired Activision Blizzard: What does that mean for you?

Tomas Franzese
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Microsoft now owns Activision Blizzard. After Microsoft worked to appease regulators and fend off litigation, the $69 billion acquisition first announced in January 2022 is finally complete. Now that Activision Blizzard is officially part of Microsoft and a sister company to Xbox Game Studios and ZeniMax Media, that raises an important question: What does this acquisition mean for you as a player?

Following this acquisition, Microsoft will own more gaming studios, the availability of Call of Duty and other Activision Blizzard franchises will shift, and unionization efforts within Activision Blizzard could gain a bit more ground. If you’re wondering what happens next, here’s our thorough examination of how the deal could impact players moving forward.

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Microsoft’s new game studios

With this acquisition, Microsoft will now own all the developers under the Activision Blizzard company. That includes the teams at Activision Publishing, Blizzard Entertainment, and King, the latter of which is the developer behind the wildly popular mobile series Candy Crush. The acquisition encompasses the following subsidiaries as well: Treyarch, Infinity Ward, Raven Software, Sledgehammer Games, High Moon Studios, Beenox, Toys for Bob, Activision Shanghai Studio, Solid State Studios, Demonware, Digital Legends, and Major League Gaming. Microsoft now also owns the rights to all of the games and IP Activision Blizzard previously released.

The key art from when Microsoft finally acquired Activision Blizzard.
Microsoft

Activision Blizzard franchises referenced in the art and statements surrounding the deal’s completion include Overwatch, Tony Hawk’s Pro Skater, Candy Crush, Starcraft, Crash Bandicoot, Call of Duty, Warcraft, Diablo, Pitfall, Farm Heroes, Guitar Hero, River Raid, Kaboom, and MechWarrior. Activision Blizzard will continue to function independently post-acquisition, just like ZeniMax, but will still have to report to Head of Xbox and CEO of Microsoft Gaming Phil Spencer.

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Activision Blizzard CEO Bobby Kotick will remain in that position until the end of 2023, saying in an email and public statement that Spencer asked him to so there’s “a smooth integration for our teams and players.” Effectively, this raises the number of Xbox developers from 23 to 38, although some of Activision’s developers have multiple teams or just serve as support studios. In an email to Xbox employees following the acquisition’s closure, Spencer confirmed that he would visit Activision, Blizzard, and King’s offices over the coming weeks.

Xbox exclusivity

Of course, the most pressing question that was the center of much debate during the Federal trade Commission’s (FTC) trial is the exclusivity of Call of Duty following the acquisition. Microsoft promises that new Call of Duty games will launch across PC, PlayStation 4, PS5, Xbox One, and Xbox Series X/S. Microsoft previously voiced its intention to keep Call of Duty on PlayStation and finally signed a deal with Sony over the weekend. “We are pleased to announce that Microsoft and PlayStation have signed a binding agreement to keep Call of Duty on PlayStation following the acquisition of Activision Blizzard. We look forward to a future where players globally have more choice to play their favorite games,” Spencer tweeted.

The official logo for Call of Duty: Modern Warfare III.
Activision

So, we can expect Call of Duty on PlayStation for years to come. On top of that, Microsoft signed a similar agreement with Nintendo to bring Call of Duty to Switch and future Nintendo platforms over the next 10 years. You can also expect Call of Duty to come to Steam, even though Valve declined to sign a deal with Microsoft to commit to that. Exclusivity discussions get murkier regarding Activision franchises that aren’t Call of Duty, as that’s the only franchise PlayStation’s deal covers.

In court, Xbox did not have to make the same commitments for other Activision Blizzard franchises like Diablo, Overwatch, Crash Bandicoot, and Spyro as it did with Call of Duty, so technically, there is a possibility some of those could go exclusive, although that’s just speculation at this time. In the Xbox Wire post announcing that the acquisition was complete, Spencer made the following statement about his vision for the availability of Activision Blizzard’s future games: “Together, we’ll create new worlds and stories, bring your favorite games to more places so more players can join in, and we’ll engage with and delight players in new, innovative ways in the places they love to play, including mobile, cloud streaming and more.”

Based on how Xbox treated already released ZeniMax games after that acquisition, though, expect games like Overwatch 2, Diablo IV, and Crash Team Rumble to continue support across all platforms. Whenever Activision Blizzard releases something new that’s not connected to any preacquisition deals, it’s possible that such a game will be an Xbox exclusive. That’s a situation we probably won’t have to deal with for a few years, though, so in the immediate future, this acquisition shouldn’t push the console exclusives needle significantly.

Activision Blizzard’s cloud gaming future

It’s also more likely that Activision Blizzard games will come to cloud gaming services following this acquisition, although Microsoft won’t be the company in control of that. Throughout the acquisition process, Microsoft publicly made deals with Nvidia, Boosteroid, Ubitus, and EE to support their cloud services with games. To get the U.K.’s Competition and Markets Authority (CMA) to approve the acquisition, it had to give the cloud gaming rights for Activision Blizzard games over to Ubisoft.

Key art showing multiple devices playing games via the cloud.
Microsoft

So, while it’s likely that we’ll see an increase in Activision Blizzard games on cloud services in the coming years, Ubisoft will technically be the company controlling that. “The deal includes all the Activision Blizzard games that are being distributed today and includes all the games that Activision Blizzard will release over the next 15 years,” Chris Early, Ubisoft’s vice president of Strategic Partnerships and Business Development, explained in a blog post. “That includes the Call of Duty franchise and a whole lot more. Yes, it does include all the DLC, including in-game content and downloadable DLC packs, expansions, and add-ons.”

In addition to the cloud gaming services mentioned above and Xbox Cloud Gaming, Ubisoft will bring Activision Blizzard’s games to its Ubisoft+ service. We don’t have an exact date for that yet, though. “We will take the time we need to make sure that the back end fully supports the experience we want players to have,” Early explained. “Now that the deal is closed, the operational element can begin to kick off.”

Activision Blizzard games on Xbox Game Pass

Yes, you can expect many of Activision Blizzard’s games to come to Xbox Game Pass, although that won’t happen immediately. Ahead of the acquisition’s closure, Activision Blizzard explained on X (formerly Twitter) that games like Call of Duty: Modern Warfare III aren’t coming to Xbox Game Pass on day one and that fans must be patient about its titles coming to the service.

Xbox Game Pass logo
Microsoft

“It’s awesome to see anticipation building for Call of Duty: Modern Warfare III. As we continue to work toward regulatory approval of the Microsoft deal, we’ve been getting some questions whether our upcoming and recently launched games will be available via Game Pass,” the tweet says. “While we do not have plans to put Modern Warfare III or Diablo IV into Game Pass this year, once the deal closes, we expect to start working with Xbox to bring our titles to more players around the world. And we anticipate that we would begin adding games into Game Pass sometime in the course of next year.”

Spencer’s Xbox Wire post and email to the developers at Microsoft’s gaming studios reflected this sentiment. “Today, we start the work to bring beloved Activision, Blizzard, and King franchises to Game Pass and other platforms. We’ll share more about when you can expect to play in the coming months.”

Activision Blizzard workers can now unionize

Even since reports about Activision Blizzard’s workplace misconduct emerged in 2021, there have been unionization efforts at its studios. While a Raven Software union has formed, Activision Blizzard puts a lot of effort into stamping out unionization efforts at companies like Blizzard Entertainment. From hiring an anti-union firm to allegedly engaging in union-busting practices, it’s clear that Activision Blizzard management does not want to deal with a union.

The logo for Raven Software's union.
GWA

Under Microsoft’s leadership, though, the Activision Blizzard unions have a much better chance of thriving. In June 2022, Microsoft pledged that “employees have a legal right to choose whether to form or join a union.” Microsoft also said it is “committed to creative and collaborative approaches with unions when employees wish to exercise their rights, and Microsoft is presented with a specific unionization proposal.”

Sixty days after Activision Blizzard is a part of Microsoft, it will have to follow those same guidelines, which has emboldened Raven Software’s union and potentially gives Blizzard Entertainment workers the chance to unionize if they want. It is worth noting once again that Kotick will stay with the company through the end of 2023 despite the accusations concerning him and his management of the company. Still, union organizations like the Communication Workers of America seem optimistic about the implications of this acquisition.

“It is a new day for workers at Activision Blizzard. Over two years ago, workers at Activision Blizzard’s studios captured the country’s attention through walkouts and other protests over discrimination, sexual harassment, pay inequity, and other issues they were facing on the job,” CWA President Claude Cummings Jr. said in a press release. “Their efforts to form unions were met with illegal retaliation and attempts to delay and block union elections. Now, these workers are free to join our union through a fair process without interference from management. Microsoft’s high-road approach should be the norm across the industry.”

Can the acquisition be undone?

While the Activision Blizzard acquisition has technically gone through, the litigation surrounding it isn’t over just yet. The FTC is still appealing Judge Jacqueline Scott Corley’s decision. To get a sense of the legal future of this deal, we reached out to the firm Sam Castree Law, which specializes in video game law. It’s founder told us the merger could be undone if the FTC wins its case on appeal, but that’s unlikely to happen.

Xbox acquired Activision Blizzard on January 18, 2022, and gained the rights to Call of Duty, Candy Crush, and more.
Microsoft

“Given the vertical nature of the merger and the fact that Microsoft is already planning to be kind of hands-off with Activision, it certainly wouldn’t be the hardest thing to undo. Judge Corley said something to this effect in her opinion,” Sam Castree explained. If that were to happen, Castree does not believe the merger getting undone would cause a ton of fiscal damage. If it doesn’t make any thorough changes to Activision Blizzard’s staff, Microsoft would just have to give back the stock and money it purchased. Ultimately, though, Castree believes this will all stay hypothetical.

“The new status quo will be that Microsoft owns Activision. Absent a countervailing reason, courts are sometimes hesitant to upset the status quo,” Castree says. “Given the public interest and scrutiny given to this case, the potential public backlash from the FTC suddenly pulling the rug out from under Microsoft is likely weighing in the back of people’s minds. That’s not the only concern, of course, but it’s probably an unspoken factor. And Judge Corley did rule that the FTC was not likely to succeed. And the 9th Circuit Court of Appeals declined to block the merger while the appeal was in progress. While the merger could possibly be undone ever after it’s complete, it is indeed very unlikely for this deal to be undone once it actually happens.”

So, as of now, the Activision Blizzard acquisition has gone through and will stay that way. While it’s monumental for the industry, in the short term, the purchase might not impact you much unless you use many cloud gaming services. Expect to see more Activision Blizzard titles on Xbox Game Pass and other cloud gaming services in the coming months and for the acquisition to create an industry power shift in the future.

For now, casual gamers will be OK playing Call of Duty on Xbox or PlayStation as usual.

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Tomas Franzese
Tomas Franzese
Gaming Staff Writer
Tomas Franzese is a Staff Writer at Digital Trends, where he reports on and reviews the latest releases and exciting…
Why cloud gaming is the linchpin in Microsoft’s troubled Activision Blizzard acqusition
Key art showing multiple devices playing games via the cloud.

The United Kingdom’s Competition and Markets Authority (CMA) delivered a shocker this week when it blocked Microsoft’s acquisition of Activision Blizzard on Wednesday. While a lot of focus on Microsoft’s fight was centered around whether or not the acquisition would give Xbox consoles an unfair advantage over PlayStation consoles, what ultimately decided it was a much smaller market: cloud gaming.
The idea of being able to stream the game you’re playing from the cloud has existed for well over a decade. Cloud gaming’s relevance to the video game industry has only grown over the past several years thanks to both failed and successful efforts from big tech companies like Google, Amazon, and, most importantly, Microsoft. Still, cloud gaming is considered relatively niche, with Activision Blizzard Bobby Kotick calling it "inconsequential" in an interview with Bloomberg and UCL Associate Profession Joost Rietveld saying it’s not a distinct market in a submission to the CMA.
Despite those pleas, the CMA claims that cloud gaming is a “nascent market” and that “already strong incumbent in this market even stronger” in its 418-page report on the matter. Following the CMA’s decision on Wednesday, I spoke to several different analysts to find more clarity about how big Microsoft is in the cloud gaming space and why the CMA should feel compelled to intervene. While experts mostly side with Microsoft over the CMA on this decision, one greater truth emerged from these discussions. Whether one thinks cloud gaming is relevant to this acquisition or not, this emergent style of gaming has reached a point of no return where it'll be instrumental to the video game industry going forward. 
Microsoft, king of cloud gaming
Cloud gaming may sound like a niche within the industry, but that's not entirely accurate. BrandFinance Managing Director Laurence Newell tells Digital Trends that “cloud-based services account for over 70% of Microsoft’s brand value, amounting to a staggering $137.5 billion.” That’s quite an eye-catching number that understandably would raise a regulator's alarm bells. However, Newell admits that gaming only makes up 8.5% of Microsoft’s revenue, and cloud gaming is an even smaller amount of that slice.
Despite its relatively small impact on the wider company, most of the experts I spoke to agreed that Microsoft has emerged as a cloud gaming leader thanks to its compatibility with a large segment of the Xbox Game Pass Ultimate library. Conversely, Activision Blizzard has had almost no cloud gaming presence outside of one Sekiro: Shadows Die Twice port on Google Stadia before that service’s shutdown. If it were to be acquired, it is inevitable that more Activision Blizzard games would likely come to cloud-based gaming services.

Despite the shutdown of Google Stadia and the relatively small brand value received from cloud gaming compared to the rest of the company, the CMA still points out in the press release about its decision that “monthly active users in the U.K. more than tripled from the start of 2021 to the end of 2022. It is forecast to be worth up to 11 billion British pounds globally and 1 billion pounds in the U.K. by 2026.” Associate Professor of Strategy and Entrepreneurship at the UCL School of Management Joost Rietveld, who has also been a consultant for Microsoft during its acquisition process, challenges the notion that cloud gaming as a whole is a single market.
Instead, Rietveld splits it into four categories, placing Xbox Game Pass into a category called “cloud gaming as a feature,” which is when it’s “offered as part of a consumer-facing distribution platform” or “included within a bigger bundle of services provided by the platformer.” Under Rietveld’s view, services like Nvidia GeForce Now, Ubitius, and EE -- all of whom Microsoft has made individual deals to bring Activision Blizzard and Xbox Game Studios titles to -- fall into different categories and thus shouldn’t be considered or directly compared to Xbox Game Pass. No matter how they’re categorized now, the real question mark looming over the technology is its future growth, according to Omdia Senior Principal Games Analyst Steve Bailey.
“Will it remain a niche additional service or become the gaming platform of the future?” Bailey asks in his statement to Digital Trends. “Our projection is that cloud gaming is growing rapidly (revenue should more than double by 2026), but it’s still a long way from taking over the games market, so it remains arguable either way.”
“Arguable” stands out as the keyword to me here. Like any emergent technology, we’re heavily debating the positives and negatives of cloud gaming, specifically through the lens of this acquisition. But what exactly is it that the CMA sees in Microsoft that worries them?
The CMA’s problem with Microsoft
“The CMA’s argument is not that acquiring Activision Blizzard would allow Microsoft to dominate the console market as a whole, where Sony and Nintendo have strong positions relative to Xbox, but only that it would help it to achieve a dominant position in cloud gaming specifically,” Bailey tells Digital Trends. “Microsoft and Activision Blizzard will likely argue that this is disproportionate, given the relatively small scale of the cloud gaming market.”

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Microsoft’s Activision Blizzard acquisition blocked in the U.K. over cloud concerns
microsoft activision blizzard deal questions overwatch 2 lucio

The U.K.'s Competition and Markets Authority (CMA) has blocked Microsoft's attempt to acquire Activision Blizzard because of its potential negative impact on cloud gaming. 
Since January 2022, Xbox parent company Microsoft has been trying to acquire Activision Blizzard, the video game publisher behind franchises like Call of Duty, Diablo, Warcraft, and Overwatch. The companies have run into lots of regulatory hurdles, though, especially from the CMA and FTC, the latter of which is currently suing Microsoft. While it seemed like the CMA was inching towards approving the deal, the U.K. regulator ultimately decided to block it due to its potential impact on the fledgling cloud gaming market.

"Microsoft has a strong position in cloud gaming services and the evidence available to the CMA showed that Microsoft would find it commercially beneficial to make Activision’s games exclusive to its own cloud gaming service," a press release from the CMA explains. " Allowing Microsoft to take such a strong position in the cloud gaming market just as it begins to grow rapidly would risk undermining the innovation that is crucial to the development of these opportunities."
Over the past couple of months, Microsoft has attempted to ease these cloud gaming concerns by making deals with companies like Nvidia and EE. The CMA did not think these remedies were enough, though, saying that Microsoft's efforts didn't account for enough potential business models, cloud gaming services that don't use Windows, and how the deal could take "the dynamism and creativity of competition" away from the U.K.'s cloud gaming market.
Obviously, Activision Blizzard and Microsoft aren't too happy about this decision. Activision Blizzard directly attacks the CMA in a statement provided to Digital Trends, saying that the "report contradicts the ambitions of the U.K. to become an attractive country to build technology businesses," before calling the country's economic prospects "dire" and threatening that it will reconsider its plans for growth in that country. 
Microsoft's statement from Vice Chair and President Brad Smith is a bit more measured, saying that Microsoft is "fully committed to this acquisition and will appeal." Citing the deals the company has already made to bring Call of Duty to more platforms, Smith says that the decision shows "a flawed understanding of this market and the way the relevant cloud technology actually works."
https://twitter.com/BradSmi/status/1651182266406584320
Microsoft has a lot of work cut out for itself if it still wants to force this deal through after pressure from the FTC and CMA. As the appeals process could take up to nine months or more, it seems unlikely that the acquisition meets its original June 2023 deadline; it's probable we'll be following this fight to acquire Activision Blizzard for the rest of the year. 

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Microsoft pledges to bring Xbox PC games to Nvidia GeForce Now
geforce-now-og-no-text-1200x630

Microsoft has announced a 10-year partnership with Nvidia aimed at bringing Xbox PC games to its cloud gaming service competitor Nvidia GeForce Now as part of its ongoing efforts to win over companies skeptical of its potebtial Activision Blizzard acquisition.
This means that players can use Nvidia GeForce Now to play the Steam, Epic Games Store, or Windows versions of titles like Halo Infinite, Redfall, and eventually, Call of Duty through the cloud on GeForce Now. Third-party publishers with games on the Windows Store can also now grant streaming rights to Nvidia. This announcement came during a European Commission hearing where Microsoft tried to convince regulators that its impending acquisition should bne allowed.
Microsoft has been under a lot of regulatory scrutiny even since it announced its intent to acquire Activision Blizzard in January 2022. It's trying to win over industry peers with deals like this one with Nvidia. This week, the Communications Workers of America voiced its approval of the deal, and Microsoft has signed a binding agreement to bring Call of Duty to Nintendo platforms as well. Previously, Nvidia had raised concerns about Microsoft's Activision Blizzard acquisition, but the press release announcing this agreement states that the deal "resolves Nvidia's concerns," and that Nvidia now gives "full support for regulatory approval of the acquisition." 
Regulatory bodies in the U.S., U.K., and Europe are worried that Microsoft acquiring Activision Blizzard will hurt the game industry and sabotage Microsoft's competitors in both console and cloud gaming. Nvidia GeForce Now is seen as one of the biggest competitors to Xbox Game Pass Ultimate's cloud service offerings, which makes it surprising that it reached an agreement with Nvidia. However, this deal also demonstrates how Microsoft is willing to make concessions so that its acquisition of Activision Blizzard is approved.

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