Microsoft's big problem you need to know
Microsoft's big problem you need to know
Microsoft's big problem you need to know
Microsoft wants to buy Activision Blizzard for $69 billion, which would make the acquisition the largest takeover of one company by another in gaming history. If the acquisition is approved, Microsoft will gain control of some of the world's most popular video games, including Call of Duty, World of Warcraft, Overwatch, and Candy Crush.
Microsoft's main objective is to increase its sales of Xbox consoles. Sales of Sony's PlayStation have exceeded Microsoft's Xbox for some time now, and Microsoft says buying Activision would allow it to offer more big titles on Game Pass - its Netflix-style subscription - and create more games for phones mobile. Microsoft also announced a deal for Call of Duty games to appear on Nintendo machines if the deal goes through, and says it has made the same offer to Sony.
However, Sony is concerned that Microsoft might stop some big games from being on PlayStation. The latest installment in the Call of Duty series - Modern Warfare 2 - grossed $1 billion in its release weekend, and more than half of all copies sold in the UK were for PlayStation.
The US, UK and Canadian governments also have similar concerns about Microsoft's acquisition of Activision. They fear that this gives Microsoft too much power and that it will use that power to make it more expensive, harder or even impossible to play certain games on other companies' consoles.
Microsoft said it didn't want to hurt anyone's feelings and that it would be foolish to suddenly stop selling hit game series to millions of potential customers. However, in 2020 Microsoft shelled out $7,5 billion for Bethesda, the creators of the massive Fallout and Skyrim games, and it's been rumored that some of this company's future games will be Xbox exclusives. This raised fears that the same could happen with Activision.
Ultimately, Microsoft's acquisition of Activision is a major step in the video game console wars, and it could have significant implications for the entire industry. Video games have become a very lucrative industry, with billions of dollars in revenue every year, so the stakes of this acquisition are high. Microsoft has already dominated the personal computer and software industry, and the acquisition of Activision would allow it to consolidate its position in the video game console industry.