Top
910°

Microsoft to buy Activision Blizzard in $68.7 bln deal

Microsoft Corp said on Tuesday it would buy "Call of Duty"videogame maker Activision Blizzard for $68.7 billion in cash, the largest deal in the sector making the Xbox maker the third-largest gaming company by revenue.

The story is too old to be commented.
chrisx120d ago (Edited 120d ago )

let's see some great games then i hope.

VenomUK120d ago (Edited 120d ago )

This is a megaton. But honestly, I’m concerned for PlayStation and Nintendo as it means Microsoft is able to use its incredible wealth from big tech to squeeze out competitors and dominate from spending.

I know this debate will get into the whole format wars arguments, but everyone should try and look beyond that because this is very serious and it is just a matter of time before the competition will be lessoned. It’s one thing removing Elder Scrolls and making it exclusive, but Microsoft removing Call of Duty, the biggest franchise there is, from the platforms with the biggest user bases, and then what, buying EA and removing FIFA Football and Madden? Buying Take Two and making GTA exclusive? This will have an impact on open competition.

DFresh120d ago

If you read in the previous article M$ still plans to support other gaming communities moving forward.
Acitvision Blizzard is still going to be multiplatform.

kneon120d ago

@DFresh

They really have no choice if they want the deal to be approved. Buying up small developers won't ever be opposed, but buying up the big ones means the DOJ is looking over their shoulder waving the anti-trust laws.

Microsoft lost that game once already, they don't want to do it again

ABizzel1120d ago

@DFresh

That's what every business says until, the pre-determined contracts are over and the top hat comes out and starts playing Monopoly.

This is huge news, but it's also a dangerous precedent set for gaming overall.

SurgicalMenace120d ago

My thoughts exactly. Without the market share, this is a punch in the face to those on other platforms. They'll learn, people don't take kindly to being hit; they often want their lick back.

darthv72120d ago (Edited 120d ago )

I dont know how Phil did it after talking the heads of MS into 7.5b for Zenimax. To go back and ask for another 68b is just insane but... here we are.

Google, Amazon and Apple aint going to have much to fill their services. Could EA be next??

VenomUK120d ago

@DFresh. Psychonaughts 2.

After buying Double Fine Microsoft was obliged to release the PlayStation version. It did, but it made sure it only released the top performing version on Xbox. This may have set a precedent where Microsoft will see the benefits in a two-tier system where it 'honours' the promise and releases on multiple platforms but the best version is released on Xbox with all the bonus content.

realplu120d ago

This is why I don't buy Microsoft products. They forced their MS Office competition out of business by implementing anti-consumer practices. Then as soon as the competition was out of business they start hiking up the prices of its software. I haven't purchased a Microsoft product in several decades.

TheBrit120d ago

Microsoft will NOT remove those games from other platforms - they want to MAKE money not LOSE money. Those games bring in an incredible amount of money, why would you lock out that user base just out of spite? They are going to boost the XBOX/gaming division financials 10 fold with this.

CaptainHenry916120d ago (Edited 120d ago )

I think Microsoft is done acquiring big studios. Bethesda and Activision is going to take them maybe a decade to get that profit back. Microtransactions is here to stay and it's going to get worse and hiking up the prices.

"CEO Bobby Kotick, who said Microsoft reached out to him for a possible buyout, would continue to be the CEO of Activision following the deal." Give me the money 💰 Microsoft 😂

EvertonFC120d ago

I'm a Playstation fan but Sony must be thinking wtf right now.

onisama120d ago

actually i kind of have concern that Microsoft will buy even more rumours about sega too...i mean even that i prefer xbox but a company control the market is a bad thing....but also i dont blame them as sony would do so if they could as sony even buys exclusivity like with demon souls remake FF VII remake and endwalker and many before...

Fonsecap120d ago (Edited 120d ago )

I don't believe that the big stockholders will be ok if Microsoft removes the Activision blizzard games from the other platforms, we're talking about a 68B$ deal here, how will M$ recoup an investment this big with only one platform, business wise it wouldn't be a smart move.

Sharky231120d ago

I don’t care who owns Activision as long as Call of Duty stays multi-platform. Buying all these big game companies is getting ridiculous.

Extermin8or3_120d ago

@Dfresh MS said that about Bethesda prior to the deal going through. Soon as it was finalised they had starfielda ps5 version cancelled which was what 5+ years into development and then openly said that elderscrolls was likely exclusive too.

Sunny_D120d ago

At this point, antitrust laws are dead. MS has been in American politicians pockets for years. Even if they made everything exclusive to Xbox, this deal would have been approved regardless. Disney buying Fox was the litmus test, and now every big name company has free reign with these consolidations...

4Sh0w120d ago (Edited 120d ago )

Like it or not gaming is a business, Microsoft heard the taunting a few years back now they have responded with a fury of megaton game changing moves. If you have a good pc & ps, & dont want gamepass, cool but if you buy any of these studio games its a win for Microsoft whether its on pc or ps. The masses don't care about the silly platform wars, they are just gonna play wherever the games go but honestly if you play more than a few games a year and you don't get gamepass now under any circumstances then you are literally throwing away money.

Also Microsoft is the richest company in the world depending on the day of the week, you’re fooling yourself if you believe they *have to keep these games on ps, they dont but I forsee at least for awhile they would, luckily they've been amicable to growing through other platforms and to me it's makes good business sense given COD is the largest gaming franchise in the business.

PurpHerbison120d ago

I'm all for it. I've grown tired of Xbox/Playstation slowly losing their uniqueness each generation with overwhelming amounts of multiplats. I want to get back to the days when each console had almost entire libraries of exclusives whether it was 1st party or 3rd party.

darthv72120d ago

@4show, Im more interested in the prospects of MS freeing up all the support studios from working on CoD and giving them free reign to pick what they want to make. Be it something new or rebooting something that is in the huge library of franchises that have been dormant for far too long.

MS are going to want to recoup this investment and you can only do that with continued output. There is no excuse now for them to not have games coming throughout the year instead of only near the end. Imagine a WoW for consoles or a reboot of some classic Sierra stuff.

DontBeMalding120d ago

This isn't a monopoly at all. It's a handful of studios and some IP. It's video games, make a new IP. If Microsoft bought out Sony, that would be a question for anti-trust. Or Nintendo. The studios and IP they bought, while expensive, don't have value until they produce. If they're only making casual games for casual gamers, what's the big deal? Literally anyone can compete. Nothing about this purchase stops anyone from competing, at all. Devs can quit if they want (Toys for Bob creative team did that). You can make a new studio. New IP is always there. This is a wild purchase for sure, but for the most part I don't see this making a difference in my purchasing habits. It'll take 5 years before we see changes and at that point it'll be for the better anyways. Activision/Blizzard is failing to crank software out. Delays, ruining old IP, beating IP to death like CoD. It's pretty hard to have a monopoly going when all you buy is a studios name/resources and IP. You can literally just make your own, which is what indie is. Plus up and coming AA games which are making a comeback the last few years. Which is a good thing. If anything this is the casual consumer AAA games dying out right in front of us. Leaving us with nothing but Indie, AA and proper AAA. I don't know about you but I can live with that. Worth mentioning that you can get these games on PC anyways. This monopoly talk as of now is a little silly.

curtain_swoosh120d ago

i think nintendo has enough exclusives with zelda and the lot right. and im sure sony will be fine too but damn. this deal is definitely a gut punch to both of them and i dont know how i feel about it. because at this point, ms is playing monopoly.

120d ago
Sully_III120d ago

Its anti-market, monopolist practices. If they keep going they're going to face anti-trust lawsuits and frankly I wouldn't defend them if they were.

+ Show (19) more repliesLast reply 120d ago
RaidenBlack120d ago (Edited 120d ago )

https://twitter.com/charlie...

Most likely future CoD will remain Multi-plat. Since Warzone is already multi-plat & it needs to suported uniformly across all platforms to maintain online balance.
Other non-live service dependent (non-CoD) future releases will likely be Xbox exclusive.

DOMination-120d ago

Everyone on n4g makes a big point to say that they hate CoD so according to this community, it wouldn't make a difference either way

darthv72120d ago

MS needed some exclusives. I cant wait to get the new candy crush exclusively for my nokia windows phone.

/s

CaptainHenry916120d ago (Edited 120d ago )

Throwing money at micro transactions doesn’t translate to better gaming. But I realized that Bobby Kotick and Microsoft are on the same page. This is how Microsoft will make their money from gamepass. I still think they should have acquired WB. I don't think Activision/Blizzard is worth 70 Billion 🤔

Obscure_Observer120d ago

"It's also up to From Software to agree if they want Sekiro on gamepass"

No, it´s not. Activision funded Sekiro. Bayonetta is a SEGA IP, BUT, since Nintendo is the one paying for Bayonetta 3´s development, you won´t see that game in any other platform at least Nintendo agrees with it.

CaptainHenry916120d ago (Edited 120d ago )

Obscure_Observer
Sekiro:Publisher(s) Activisio n AND JP: FromSoftware

https://en.wikipedia.org/wi...

They still have a little say to it since they help publish the game

alb1899120d ago

Does that means that Sekiro and Elden Ring will be on Gamepass?

CaptainHenry916120d ago (Edited 120d ago )

Not Elden Ring because it's published by BANDAI NAMCO. But Sekiro is a possibility because From Software and Activision is the publisher's. It's also up to From Software to agree if they want Sekiro on gamepass

CaptainHenry916120d ago

I'm surprised Microsoft even bought this company after Bobby got sued. I'm surprised they even support him. Now Microsoft has to deal with him and his company. It's called pulling the ripcord and handing your problems over to someone else to deal with. What's also hilarious is that Microsoft wasn't going to support them. Sony said it as well

darthv72120d ago (Edited 120d ago )

Bobby is out once the deal is finalized. That isnt a sign of support... that's housecleaning.

https://www.vgchartz.com/ar...

CaptainHenry916120d ago (Edited 120d ago )

Not from what Microsoft CEO Satya Nadella just said (check out the link below). If you really knew the truth. Can't fire someone until you own the company. Microsoft wants him to stay. They're fooling everyone 😂🤫 I wish they would have went with Take 2 or WB because I feel like Activision is not the same anymore when it comes to quality games. They lost their touch in recent years

https://www.google.com/amp/...

darthv72120d ago

"I feel like Activision is not the same anymore when it comes to quality games. They lost their touch in recent years" i agree.... hence things will change for the better under Phil's leadership.

Sully_III120d ago

People have been saying that for five years now when they started their spending spree all the way back then. It's picking up and once they have the potential momentum they could get it would be almost unstoppable, but we've been saying this for five years and its driving me nuts.

+ Show (4) more repliesLast reply 120d ago
LOGICWINS120d ago

I'm still in disbelief. This day will change the gaming industry forever. I'm interested to see how Playstation will counter.

It's no secret that I'm pro-Xbox, but I don't want to see them become cocky.

annoyedgamer120d ago

this isnt a good thing for anyone. It just takes us a step closer to a gaming duopoly like PC gamers are stuck with form Nvidia/AMD and Intel/AMD

ABizzel1120d ago (Edited 120d ago )

Surprising, I always thought you were Pro-Gaming maybe Pro-PC.

Anywho it seems all these smaller developer deals Sony has been doing with some of the best talent leaving these studios is their counter, but that's not enough right now.

It makes sense why these people were leaving these companies, and starting their own. A monopoly was forming. Sony has former COD developers making a PS Exclusive, Jade and former Ubisoft devs making a PS Exclusive, former Bungie developers making a PS Exclusive. Which is cool because they're all the leads / creators of COD / Assassin's Creed / Halo, but that's not enough to replace 10 franchises and fans of the original games.

Like I said below this isn't even PS vs Xbox anymore. It's Microsoft vs the industry as they're doing what they've always done and that's try to buy up the industry. At this point The Activision Deal is in the hands of the owner shareholders and the government, and I'm sure Sony is on the sidelines doing what they can to stop it as well.

Meanwhile Nintendo is in Nintendo land doing what they do best, as they're the least affected by any of these acquisition thus far. And by the time they ever respond to anything the industry will be 90% Microsoft, and they'll just get wiped out.

BISHOP-BRASIL120d ago

@annoyedgamer

I woudn't say "anyone", I'm sure Kotick is laughing his way to the bank as we speak.

RedDevils120d ago

That doesn't sound right with your name, when you admitted you're a pro Xbox lol

+ Show (1) more replyLast reply 120d ago
SurgicalMenace120d ago

Sony nor Nintendo needs to counter, as this is XB trying to mask its inability to compete by innovating through development. Buying up the industry is an element of fear, not prowess. This has the potential to explode in their faces. Stay tuned.

Aloymetal120d ago

Exactly! one thing they can't buy is popularity with home console gamers around the planet which they are dead last. But like you said, this will be a fun gen to watch, let's see how everything unfolds by the end.

darthv72120d ago

MS is after the bigger fish..... Apple, Amazon and Google.

ABizzel1120d ago

I disagree. Your first statement might ring true, but the reality is if they are successful in their attempts to keep buying up all these publishers and making their content exclusive to their platform / service, then it does hurt the competition.

For example if you own a hotel, but then the Hyatt or Marriott comes and buys all the buildings around you, and market exclusives rooms, events, etc... And you have to drop price just to keep up, and it's still not working. Eventually you're going to struggle with your business. That's what Microsoft is doing.

There are tens of millions of COD players, and if it's exclusive to Xbox that's tens of millions buying their platform or subscription service and potentially having no reason to buy a PS or Nintendo. EA could be next and that's Fifa, Madden, etc... Take-Two, GTA, Red Dead etc... That's a problem no matter how you spin it.

I honestly don't think this is Microsoft against Sony type of thing. This is just Microsoft being Microsoft and looking for another consistent multi-billion dollar revenue stream, and it so happens to be gaming.

Now I do agree with you, this could blow up in their face, and fall through like the AT&T and T-Mobile merger, where T-mobile ended up leaving that denied merger along with the billions AT&T spent, and went and bought Sprint, because this is clearly a sign of trying to monopolize the industry by buying the best selling video game franchise in the industry each year.

It's almost as Monopoly levels of bad as trying to buy Sony or Nintendo (Activision is easily top 5 monopoly moves). But we'll see what happens.

spicelicka120d ago

You don't spend 68 billion dollars out of "fear" lol.

Their strategy is focused on Gamepass and cloud gaming, which is an innovation in the gaming industry. Gamepass with Xcloud right now is the biggest gaming streaming platform.

SurgicalMenace120d ago

Oh, but you do. Buying out the market to suffocate the competition is equivalent to strangling your lover for not choosing you. They are willing to practice a "if I can't have the industry, nobody can" mentality. I wouldn't approve of any of the 3 doing this; it's toxic and very insecure.

Sayai jin120d ago

They couldn't counter even if they wanted to by this magnitude. I have feeling they are not done yet. I can understand certain people being upset, but down playing or negative wishing is ridiculous.

Obscure_Observer120d ago

@SurgicalMenace

"Buying up the industry is an element of fear, not prowess."

Remind me of the last Sony studio build from the ground up?

In Nintendo´s case, I agree. But Sony? Come on!

Naughty Dog
Sucker Punch
Insomniac
Bend Studio
Nixxes
Media Molecule
Housemarque
Guerrilla Games
Bluepoint Games
Valkyrie Entertainment

All bought by Sony

Sayai jin120d ago

@Surgical, you are going hard in tgus news. Relax mate. It's called business. It's exciting and scary at the same time. I can understand of some people's disappointment, but it's juat business and MS is trying to become a very large publisher. They're games are on more platforms than any other company. Which will soon extend, as Game Pass will be on Samsung ot LG tvs. We will have to wait and see if these games will be exclusive or not, but I don't see them spending 68.7 billion USD for it....as they spent 13 billion USD on Bethesda and made them exclusive. It will probably be exclusive to game pass, but who knows, anything can happen. As a gamer I am a cool with this and as an investor, this bolstersy portfolio. MS will see a huge ROI in quick fashion on this one.

MS has always had the funds to make these deals, but they were not totally invested in the Xbox brand. That's not the case anymore.

Again, I can understand some being concerned or upset, but gaming is a business for these companies. Sony and Nintendo will continue do great. MS had an abysmal showing for a majority of Xbox One gen. Looks like they retooled and created a different business model. Trying to say it's desperation, is bit niave and misguided, as they were in much bteer standing after the Bethesda acquisition. This is what companies do. I remember being happy with my Nintendo and Sega consoles and along came Sony. Thirsty and hungry. Aony purchased quite a few companies and licenses back then...it was equal to the level they could afford. No one blinked an eye. They also flourished they're relationships woth some of these companies. MS has done this somewhat woth Bethesda and other companies.

People need to realize that they are not done with making acuisitions. If they think they are, they might want to bukcle up.

SurgicalMenace120d ago

Trust me, I'm a business consultant and a broker. I know business, and this will do wonders for my portfolio, though my absolute love for the industry would never condone monopoly practices.

@Obscure

Knowing all those companies' histories, they were ALL small developers before Sony purchased them. Furthermore, all of those companies combined would not equal the size of a Bethesda and Activision. Acquisitions are a massive part of business, but what MS is attempting to do is poor business.

darthv72120d ago

Surgical, your thinking is too limited. It is very 1 dimensional and biased (yes we know you are biased) but this is bigger than the petty console space you are limiting yourself to. Like i said in my above comment, this is more about the bigger fish. You can keep thinking its not but sorry mate... you need to broaden your mind and see there is a huge ocean out there.

+ Show (7) more repliesLast reply 120d ago
120d ago Replies(4)
ABizzel1120d ago (Edited 120d ago )

THIS IS A MEGATON.

I've said it for a while, Microsoft is done with the console war. Microsoft wants to be a publisher that owns gaming revenue overall with GamePass. Xbox is just there to deliver the service. At this point EA, and every other company is a possible acquisition.

ABizzel1120d ago

That being said, I think the industry might fight this one for sure. There is too much invested into Activistion-Blizzard globally to let this happen on excluding the Sony all together. This could be a shaky deal for MS, as this is the same way T-Mobile stole billions from AT&T after they were attempting a buyout, and then turned around and bough Sprint. This is going to be super interesting.

Sony and Nintendo need to quit laying around, Microsoft gave up on the console ware and started a Publisher/Developer war lol. I'm not a fan of buying these 3rd party publishers, but this is a BOSS MOVE and BME (Big Money Energy). COD is the biggest franchise love it or hate it, and Microsoft just took it and said "I'm the captain now". If they make it exclusive to Xbox or timed exclusive, that's around 10 million gamers instantly going out to buy an Xbox Series console at launch of the next COD whenever their current contracts are done.

Sony and Nintendo need to start buying up some of these Western publishers and start splitting up these JP studios afterwards since they have priority in JP. Square, Capcom, Namco-Bandai, Sega, Konami, Tecmo etc.... need to be looked at, and if they can buy up some of these mid-sized Western developers before Microsoft or worse TENCENT starts a western monopoly.

Crazy times....but exciting nonetheless until the monopoly happens.

SurgicalMenace120d ago

This is not a boss move it is a desperate one. I get it to buy the market, but what happens to those not willing to support you? You have to remember that money is short, so those paying premium for these consoles aren't in the market to spend again.

ABizzel1120d ago

@SurgicalMenace

You're thinking naively. COD is the biggest franchise in gaming. Tens of millions of people have switched console alliance from 360 to PS4 once timed exclusive content and marketing rights moved to PS. Now move all that back to Xbox, or worse the entire game is timed exclusive or launches a month early on GamePass, and what happens?

Microsoft has:
COD, WoW, Crash, Spyro, Overwatch, Tony Hawk, Guitar Hero, Diablo, Starcraft, and tons of classics
Skyrim, Fallout, Doom, Quake, Wolfenstein, and tons of classics
PLUS ALL THE DEVELOPERS FROM BOTH OF THOSE COMPANIES aka over new 10,000 developers.

They're going to be supported, because they own have access to a HUGE collection of some of the greatest gaming franchises now.

As I said I'm not a fan of this tactic at all, but what they've done can't be denied.

XbladeTeddy120d ago

"At this point EA, and every other company is a possible acquisition."

I'm sure competition laws will step in if they kept on aquiring every big company.

ABizzel1120d ago

They should, and if so they should stop this. That being said, you have a multi-trillion dollar company buying up video game companies....With said lobbyist paid off. It wouldn't be surprising to to see acquisition after acquisition.

They were just trying to buy Warner Games Studios from AT&T like last year or so. So they're buying up as much as they can.

TheGreatGazoo30120d ago

Only if it violates those laws which it doesn't (according to every analysis I've read). MS is not the dominant company in videos games, or the market leader. This move is tough to frame as anti-competitve too since it doesn't stop Sony or Nintendo from making, sell, or having a fair chance to succeed as gaming companies. Nintendo and Sony will be fine, they're not going out of business. Microsoft will gain market share, but that's it and M&As are monopolistic just because they'll liky get you marketshare.