As the gaming industry continues to evolve and grow, Microsoft has been a major player for years. With their Xbox console and various games, they have established themselves as one of the top companies in the field. However, recent news of their $68.7 billion acquisition of Activision Blizzard has sent shockwaves throughout both the gaming world and beyond. While this deal was intended to solidify Microsoft’s position as a dominant force in gaming, it seems that things may not be going according to plan. In this blog post, we will delve into what happened with the Activision deal and analyze what it means for Microsoft’s future in gaming.

The Background of Activision

Activision Blizzard is a video game holding company that was founded in 2008. It’s known for producing some of the most popular games, such as Call of Duty, World of Warcraft and Candy Crush. Activision has been around since the late ’70s, originally starting as a game developer before transitioning to a publisher.

The company grew rapidly over the years through mergers and acquisitions, eventually becoming one of the largest gaming companies in the world. In 2010, they merged with Vivendi Games to become Activision Blizzard.

Activision Blizzard has had its share of controversies throughout its history. One notable example is when it faced backlash from fans for not doing enough to combat toxic behavior in their online communities. Another controversy arose when they banned professional Hearthstone player Chung “Blitzchung” Ng Wai after he voiced support for Hong Kong protesters during an official tournament stream.

Despite these issues, there’s no denying that Activision Blizzard remains a major force in video games today. With iconic franchises under its belt and millions of dedicated players worldwide, it’s no wonder that Microsoft saw them as an attractive acquisition target for their gaming empire ambitions.

The Deal: What it was and what it meant

Microsoft made a massive deal in early 2022, announcing its acquisition of Activision Blizzard for $68.7 billion. The acquisition was one of the largest ever in the gaming industry and showed Microsoft’s intent to expand its presence in the gaming market.

The deal meant that Microsoft now owns some of the biggest game franchises globally, including Call of Duty, World of Warcraft and Candy Crush Saga. It also gave Xbox Game Pass access to over 400 million monthly active users across all platforms.

Microsoft aims to leverage this acquisition by bringing Activision’s top franchises exclusively to Xbox consoles and PC. This move could be seen as an attempt by Microsoft to challenge Sony’s dominance in console sales with their PlayStation platform.

Moreover, acquiring Activision also means that Microsoft gains access to new markets such as mobile games through King Digital Entertainment – a subsidiary company under Activision Blizzard – which is responsible for producing highly popular mobile games like Candy Crush.

This deal opens up many possibilities for both companies involved while giving gamers more exclusive content on Xbox and PC platforms.

What Happened After the Deal was Announced

After Microsoft’s announcement of its $68.7 billion deal to acquire Activision Blizzard, the gaming world was buzzing with excitement and anticipation. However, things didn’t quite go according to plan for Microsoft.

Firstly, the news of the deal saw a significant drop in stock prices for Microsoft. The company’s shares fell by 5%, which was their biggest decline since March 2020.

Some industry experts were also skeptical about the acquisition, questioning whether it would actually benefit Xbox Game Pass subscribers or if it would instead lead to more exclusive titles being locked behind paywalls.

Moreover, some gamers expressed concern that this move could lead to fewer multi-platform releases for popular franchises like Call of Duty and Overwatch.

Additionally, there were reports that employees at Activision Blizzard were considering unionizing due to issues regarding workplace culture and management practices within the company – something that could potentially cause problems during any kind of merger or acquisition process.

While many people initially thought this deal would be a game-changer for Microsoft’s gaming empire, it remains unclear how successful it will ultimately be in achieving its goals.

The Future of Microsoft’s Gaming Empire

With the setback of losing out on acquiring Activision, the future of Microsoft’s gaming empire may be uncertain for some. However, it’s important to note that Microsoft still has a strong foothold in the gaming industry.

One area where Microsoft is excelling is in their Xbox Game Pass subscription service. With over 25 million subscribers as of November 2021, it’s clear that gamers are enjoying access to a large library of games for a monthly fee.

Additionally, Microsoft has been investing heavily in cloud gaming through its xCloud platform. This technology allows players to stream games directly from servers instead of downloading them onto their devices. As internet speeds continue to improve and more people adopt streaming services, this could become an increasingly important part of the gaming market.

Microsoft also announced plans to acquire other game studios like Bethesda, Obsidian Entertainment and Double Fine Productions which will result into some exciting new releases in near future.

While missing out on Activision was certainly a blow for Microsoft’s gaming ambitions, they still have plenty going for them with their successful subscription service and investment into cloud-based platforms.

Conclusion

The Activision deal setback can be seen as a significant loss for Microsoft’s gaming empire. Although it was a bold move to acquire one of the biggest game publishers in the world, it ultimately did not pan out as expected.

However, this does not mean that Microsoft is down and out when it comes to its gaming ambitions. With the success of Xbox Game Pass and their continued focus on developing new games and acquiring studios, they are still well-positioned to compete in the gaming market.

Furthermore, with rumors swirling about potential acquisitions or partnerships with other major players like Electronic Arts or Sega, there are plenty of opportunities for Microsoft to bounce back from this setback and continue growing its gaming empire.

As always in business, there will inevitably be failures along the way but what sets successful companies apart is their ability to learn from those experiences and come back stronger than before. Only time will tell how Microsoft bounces back from this particular setback but if history is any indication then they have all the tools necessary to do so.