Activision Blizzard, Inc. is an American video game holding company based in Santa Monica, California. The company was founded in July 2008 by Activision, Inc. and Vivendi Games through a merger.
Blizzard Entertainment has developed 19 game’s from 1991 to 2018, in addition to developing 8 ports between 1992 and 1993; 11 of them are in Game’s Warcraft, Diablo and StarCraft series.
Activision Blizzard, a well-known name in the gaming community, may soon come under Microsoft’s umbrella, as the latter looks to dominate the gaming industry with its Xbox and PC offerings. Here’s what a record deal means for two companies and one ideal gamer.
1. Microsoft has announced that it will take over Activision Blizzard, a major US-based game developer.
2. After the Activision Blizzard acquisition, Microsoft will announce Phil Spencer as the CEO of gaming.
3. All gaming titles by Activision Blizzard will soon be offered under Xbox Game Pass and PC Game Pass.
In what will clearly be the largest acquisition in the history of the gaming industry, Microsoft has confirmed that it will acquire Activision Blizzard for $68.7 billion. To make this amount easier to understand, know that the deal is worth around Rs 5,12,000 crore or Rs five lakh 12 thousand crore in Indian currency.
An all-cash deal was announced by Microsoft today, following which Microsoft’s gaming division Xbox and Activision both announced plans to work together on future games. In its note, Microsoft states that once the transaction closes, it will become the “world’s third-largest gaming company by revenue.” This will also leave Tencent and Sony behind.
For those unaware, Activision Blizzard is the parent firm of Activision, the US-based video game developer responsible for iconic titles such as “ Warcraft ”, “ Diablo ”, “ Overwatch ” “ Call of Duty ” and “ Candy Crush ”. Due to the titles it hosts and regular eSports activities, Activision is very popular among the gaming fraternity.
The company currently has studios worldwide and approximately 10,000 employees. Following the acquisition, Bobby Kotick will continue to serve as Activision Blizzard’s CEO. The company will continue to operate as usual, focusing on accelerating business growth. The Activision Blizzard business will report to Microsoft Gaming CEO Phil Spencer.
Microsoft says the deal is expected to close in fiscal 2023. Although it has been approved by the boards of directors of both Microsoft and Activision Blizzard, it is subject to customary closing conditions and “completion of regulatory review and shareholder approval of Activision Blizzard.
Microsoft has highlighted that it wants to move into the smartphone gaming segment with Microsoft at its side. It also hints at bringing franchises like “Halo” and “Warcraft” to mobile phones going forward. It builds on Activision’s previous success with mobile games like “Candy Crush” to capture the mobile gaming segment.
Additionally, Microsoft also looks to expand gaming titles with takeovers under its Xbox Game Pass and PC Game Pass. In a note on the Xbox website, Phil Spencer writes that the company will consider bringing “excess Activision Blizzard games” to the two subscription services.
Activision’s widely enjoyed franchises will also boost Microsoft’s plans for cloud gaming. It looks to encourage “more people in more places around the world to participate in the Xbox community” using the company’s various platforms, which Microsoft will continue to support after the takeover.