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What Happens Next? Microsoft Buy Activision Blizzard For $70 Billion

PLAY discuss ramifications of the acquisition, the status of Activision CEO Bobby Kotick, and whether we should be cautious of a monopoly.

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Activision120d ago (Edited 120d ago )

Microsoft aim is to acquire major publishers... EA is next..

TheExecutioner120d ago (Edited 120d ago )

I assume it is worth between 40 to 50 billion. It's risky business special after 7 bln+ 70 bln not to mention the earlier studios' acquisitions.

however, i am expecting MS will go for an eastern giant like Atlus, square enix capcom next.

Activision120d ago

Microsoft makes all that back within 6 months.

Microsoft Q4 2021 earnings: $46.2 billion in revenue

TheExecutioner119d ago

@Activision, I knew they bought you but does 46.2 billion is generated from the gaming department only. this is the idea.?

TheRealTedCruz119d ago

Sega.

They've been close as companies for about two decades now.

ABizzel1119d ago

It's risky in the sense that if making all these games exclusive to their platform/GamePass immediately does not drastically increase their subscriber count or sales. That would be the only problem, because it would take them significantly longer to recoup the near $80 billion they spent on these companies.

Activision games bring in around $5 - $10 billion revenue each year across all platforms, so if they finish this generation up keeping things multiplat they recoup their money by the end of it or an average of around 10 years. If not they run the risk of it taking up to 20 years, possibly much longer on top of the additional risk of the industry flat out not support this (which I see as less of an issue).

For Xbox Gamers, they need to start thinking about the implication of this as well on their end. GamePass isn't going to be $15/mo. anymore, and those loopholes of getting 3 years for $181 or less are going to close. And Xbox Live is likely going to be completely removed now (forget the 2x price hike). And people will cheer it on and say it doesn't make sense not to have GamePass anyway now, and the inevitable is going to happen of gaming turning into a monthly subscription service for each platform.

For better or worse.

4Sh0w119d ago

ABizzel1

You are correct, its all going to happen regardless of our resistance to change (us industry followers or loyal fans). Why because the industry goes where the masses buying habits dictate. It will be OK though, thats why I never get too high or low on all the doom n gloom stories of how this next "thing" will ruin gaming.....online, digital vs physical, dlc, loot boxes, MT's, etc, etc of course change has downsides but #1 its inevitable & #2 the upside is gaming overall continues to grow and theres no shortage of options available to the consumer.

-Reminds me of my Dad many, many years ago when he swore, he didnt want to go online to read news, "Nothing like getting my newspaper everyday". Now thats a ancient memory, he pecks at the keys slowly but the old man is happily reading what he wants online, no paperboy.

+ Show (2) more repliesLast reply 119d ago
343_Guilty_Spark119d ago

They already have a great partnership with EA. I don't see why buying them is necessary.

VersusDMC119d ago

Especially since they would be mostly buying them for their sports games and FIFA/NHL/NFL would most likely make them do a PS5 version of their games like MLB made Sony do a Xbox version. Spend all that money for what other IP? Apex?

monkey602119d ago

Fifa is the biggest selling game every year in Europe and it would be the ticket to dominating the region. A region that is also largely playstation loyal. It would be a huge acquisition.

SullysCigar119d ago

Well they've got Todd Howard and Bobby Kotick right now, I say they go for Randy Pitchford next. Complete the set and keep all of that kind in one place...

TheRealTedCruz119d ago

Kotick is gone the second pen hits paper. 2K is already in the process of removing Pitchford as the face of his own company. And, whether you like it or not, Todd Howard is the reason for the boom of the company, going all the way back to Morrowind.

blacktiger119d ago

It's all about investors will they wait 40 years to make 70 billion dollar or will it be lawsuit. Or will Activision continue to be on multiplatform

TheRealTedCruz119d ago

You really don't understand anything about investments, apparently.
Investors usually benefit from an acquisition.

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ApocalypseShadow120d ago

It's what I've always been saying. Just like being against paying for online. But there are gamers who don't think long term or are influencers hiding in the threads to help push the agenda.

I've said it over and over. Microsoft isn't about gaming. They're about owning it and controlling gaming and make gamers pay an annual payment that's a revenue stream to them by using games as the carrot just like Windows. I've said Game Pass is just DRM 2013 2.0. If they're successful, they will hurt used games, lending and trading as has been said before.

Nothing good comes from mega corporations given free reign. Just more money out of pocket and limited options in the future. The fans will say it's great what's happening not seeing that multiplatform games are being bought out in favor of a service and hurts everyone else.

Remember when I said over and over about EMBRACE, EXTEND, EXSTINGUISH? It's been their modus operandi all this time. Sony has just been able to thwart their plans. Game pass was created since DRM 2013(always online) failed but they didn't give up on it. They are grooming gamers with it. They get you to like it with cheap price of entry, try to make it a standard by extending it to other platforms but their competitor, to try to put them at a disadvantage. It's text book. I've read the book and seen it coming in paperback and hard cover. They couldn't beat Nintendo or Sony through competition. So, they'll buy everything out to either make money off of their competitor if the games stay on other platforms. Or take away what everyone enjoyed. Just like they tried to force XBL gamers over to game pass with that price hike, they are trying to force gamers to buy an Xbox by locking games down.

Some will say butt hurt. But it's the industry and your wallets that will hurt soon enough if you want to continue playing the games you like. I've tried to tell what they were doing and still trying to do. I warned you. Get ready for the repercussions. Thanks Microsoft. I see through that smile two faced Phil.

My_Name_is_Earl120d ago

Yikes tell us how you really feel bud!

monkey602119d ago

While I absolutely agree with you, This just may be the future of the industry whether we like it or not. Other media have gone through similar transformations and they were powerless to prevent it. Gaming has become a media juggernaut. It has far outgrown us nostalgic fools. If this is the future of gaming.. and let's be honest it most likely is. The only ones who will truely lose out are those of us who refuse to adapt with it

SoulWarrior119d ago

Agreed, but try telling this to the fanboys that just see it as 'one upping' Sony, all MS have to do is mention gamepass and it's hypnotic, the bigger picture is gone.

MS want an all digital, all streaming, console-less future, where they control everything and consumers own nothing.

They can't beat Sony and Nintendo on the games front themselves, rather than using 70 billion to create or nature studios or new IPs, they just buy everything up to keep if off the competition, unfortunately this is clearly the MS way, and I doubt it stops here, I fear for the future of the industry and Sony's place in it after yesterday's news.

The day gaming becomes console-less, no ownership, pulling up an app on a TV, computer or a phone and having to pay endless sub fees for crappy streaming is the day I quit modern gaming, which is clearly where MS are trying to brute force the industry.

343_Guilty_Spark119d ago

Paying for $70 games a pop isn't a revenue stream?

ProLogY119d ago

I am genuinely excited to see how you spin Spartacus as a positive move for the industry.

RauLeCreuset119d ago

"Some will say butt hurt."

That's what they say when MS proves you right by doing things like buying up big multi-platform publishers. Any other time they ignore MS' history and act like you're wrong for distrusting MS.

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YourMommySpoils119d ago

All I know, every time I look at Phil Spencer, he looks more and more like Tony Robbins.

neomahi119d ago

Well, with all the controversy going on with Activision, who best to associate that with than Microsoft. Oh, and Bobby Kotick remains the CEO, all that talk of "WE'RE NOT GONNA TAKE IT!" and with the Microsoft acquisition, its like that never happened and Microsofts lawyers will cleanup. Yay....

TheRealTedCruz119d ago (Edited 119d ago )

Uhh

Kotick is going to be gone. How does acquiring a company whose leadership you disagree with, then releasing said leadership, and then restructuring the company have anything to do with condoning it?

gangsta_red119d ago

It's going to be great seeing the new games from these newly aquired studios appear on GP day and date. And even waiting for the older games to get added.

Microsoft is really going out of their way to provide as much content as possible for their users and their GP subscribers. Not bad for a company was criticized for not having a lot of game variety and first party studios.

It's funny to see some people upset with overdramatic claims that MS wants to control gaming and charge people a fee, as if the competition is offering all their games for free. Or the take that MS is ruining gaming by removing games off of multiple platforms, even when MS has provided more ways to play their games then any other platform.

Game Pass truly is a game changer and it has offered more games for anyone to play for an exceptionally low price. Personally I have played more games and games I would have never had purchased through that service. And that's what we all are here for, to play games, it's great that MS is providing even more content for their service.

4Sh0w119d ago (Edited 119d ago )

I 100% agree with you. I dont care what Sony buys, the games are still available to be played on ps *if I want to pay for them. Same with Microsoft but in this case it's even better because Microsoft are going to add them to a sub service I already pay for. Remember for the last 25yrs, every move Microsoft has made was suppose to be the death of gaming, their last console, they dont care about gaming they want to take over, blah, blah yet here we are gaming in *part BECAUSE of Microsoft is bigger than ever, I have buds who wouldn't touch anything more than Madden & COD playing indie games & genres they had no interest in BECAUSE of Microsoft. This is a super megaton deal that really will be felt over the next decade and its a Big, Big Win for Gamepass subscribers
AND Activision will be a better company BECAUSE of Microsoft. Real talk, *if Sony had the resources to do it how much you want to bet all their fans would be screaming from the rooftops this is good for gaming?= $70 Activision exclusives on Playstation, yeah!

Deathdeliverer119d ago

It’s amazing when peoples love for something blinds them to this point or logic. Let’s see..

Your entire second paragraph. Providing content for their services is great. It is. “Not bad for a company was criticized for not having a lot of game variety and first party studios.” This is the problem. In all these years there wasn’t game variety in the first party studios. If you’re old enough you’ll know it was the same for Nintendo, Sony, Sega, NEC, and everyone else that ever had a console. Difference is they made their OWN teams, made their own titles, and bought studios that worked closely with them and showed their value.
Instead of Microsoft investing in their own teams, and creating their OWN studios they bought studios like rare and iron galaxy which is fine. Problem is everyone at rare left when it was bought. That’s why anything they released wasn’t the same quality. Think of how long ago that was. What are the top exclusive releases from the house of Microsoft? Halo, Forza, Gears, and finally flight simulator, a breath of fresh air in the console space. Still, the variety has been the same for years.
Sony bought Quantic dream. A studio. Insomniac that has been making PlayStation games forever every sunset overdrive, and stuff like that. At the same time Sony was creating new game development studios like Sony Santa Monica, Japan Studio, and so forth to increase the teams and projects they could work on in house. Created more jobs to offset the cutting of jobs when another studio closed.
With the money Microsoft spent on Zenimax, almost 9 billion, think of how many studios they could have opened and jobs they could have created. Truly original content coming from in house. With the funds used for the buying of house call of duty they could have opened top notch facilities and drew talent from all over the world to work there and really have expanded gaming. Instead they have consolidated gaming. Created zero jobs. And have shifted how the gaming industry works forever. All that could have been exclusives for gamepass.
You really gotta look at the big picture. Take off the fan goggles for a second. Good luck to the graduates looking for jobs in the industry. If you’re fanboy this is amazing news for Microsoft. If you’re a fan of the industry that has been hoping for Microsoft to invest in themselves and take more risk, it’s terrible news.

gangsta_red119d ago

"It’s amazing when peoples love for something blinds them to this point or logic. Let’s see.."

The absolute irony in this statement is astounding. It actually the opposite, seeing people's hatred for one company that will make them go overboard with criticizing them while excusing other companies for doing the same thing...let's also see...

"Instead of Microsoft investing in their own teams, and creating their OWN studios they bought studios like rare and iron galaxy which is fine. "

343i, Turn 10, Coalition, are just a few studios that MS created, they also created The Initiative. This thought process that MS has to CREATE their own studios instead of buying ones already established is such a feeble excuse considering why would they do that? Take the The Initiative , how many years does it take to establish a staff, to get set up and running? So much time that they now have to partner with Crystal Dynamics to start the game and even then we probably wont see something for at least 5 years. Why not already buy a studio house that has an already established team and projects already in the works that can be released in 2 to 3 years?

They bought Rare and people left Rare, guess what, this is something common in the industry. No one stays for long at any studio. We get daily news reports of so and so leaves here and joins there. So the fact you even mention this as some slight against MS lets me know where your bias is.

MS has also purchased studios they worked closely with like Playground, Undead Labs and Double Fine. Studios like Double Fine, Compulsion, Ninja Theory had stated themselves that they were one foot out the door as they were in danger of closing their studios down. Until MS picked them up and kept them open. Sony and Nintendo didn't do this, you could say that MS saved them by buying these studios and kept these developers working, they saved those jobs but yet your fictional argument is that they should have just made more studios to create more jobs.
Activision also approached MS for a purchase

https://venturebeat.com/202...

From the article, Activision was also in financial trouble and that could also mean shutting down projects and laying people off. Now with this purchase that won't be the case. Not only that but with this purchase Xbox acquires a lot more content and variety for their console and GP. So yes, I am excited since i am an Xbox owner and GP subscriber, but according to you, I'm not seeing the bigger picture.

Every point you made to strongly defend Sony and Nintendo could also be made for MS, every argument against MS you made could also be said for Nintendo and Sony, but you choose to hold MS to some other standard that's not grounded in actual reality. So it's actually you that has the blind fanboy goggles on.

MS has taken way more risks by moving their games to PC, allowing them day and date on a sub service, purchasing not only high level publishers but independent studios on the verge of closing, they have more then invested in themselves with these risks. but let's be honest here, your only real take from your comment is "these games won't be on PS", everything else your concerned with is DBZ filler.

4Sh0w119d ago (Edited 119d ago )

gangsta_red
Well said, I love how when it comes to Microsoft doing exactly what Sony does but only bigger (because they can) it all becomes a evil sinister plot to kill gaming. The mountain that ps loyal fans will never get over is WE ALL KNOW including them that they would jump for joy if Sony made such a move. Theres no concern for the industry here, these games may improve or not but they will be available on almost every platform except *some not on ps, you want to play 'em go buy 'em, no different than how exclusivity has worked since gaming started. Lastly Microsoft does NOT have to build their portfolio exactly as Sony does (again they both buy out established talent & create studios), Microsoft has the resources to do things differently so I applaud them for not sitting on all that cash and going all in on their vision of gaming. I love the competition between the two with different strategies. Give it time, ps folks just salty right now but it'll be OK, plenty of games for all still coming.

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