Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Tech News

Microsoft to become 3rd largest gaming company after Blizzard acquisition

(TECHNOLOGY) Microsoft will not be left behind in the Metaverse. The tech giant plans to fully acquire Activision Blizzard by 2023 for $68.7 billion cash.

The front of the Microsoft office with large Microsoft logo.

Microsoft announced plans to acquire the video game publisher, Activision Blizzard, on January 18, 2022, in an all-cash transaction reported to be valued at $68.7 billion.

The deal gives the tech giant popular game franchises, such as World of Warcraft, Call of Duty, Overwatch, Diablo, and many more to add to its arsenal. This acquisition sets Microsoft up to be the third-largest gaming company by revenue.  Microsoft expects the deal to close in the 2023 fiscal year (which begins in July of this calendar year) once the customary closing conditions have been completed along with the regulatory review and Activision Blizzard’s shareholder approval. Both Microsoft and Activision Blizzard’s board of directors have already approved the deal.

This deal comes in hot on the heels of an avalanche of issues surrounding sexual harassment where 37 employees have reportedly left Activision Blizzard according to this article on The Verge. Microsoft states that Bobby Kotick will continue to serve as CEO of Activision Blizzard, and he and his team will maintain their focus on driving efforts to further strengthen the company’s culture and accelerate business growth. Once the deal closes, the Activision Blizzard business will report to Phil Spencer, CEO, Microsoft Gaming.

Phil Spencer, the CEO of Microsoft Gaming, posted both Activision and Microsoft Gaming will continue to operate independently until the deal is complete with Activision Blizzard then all business will be reported to Spencer.

Advertisement. Scroll to continue reading.

“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms,” said Satya Nadella, chairman and CEO, Microsoft. “We’re investing deeply in world-class content, community, and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive, and accessible to all.”

Maybe you noticed the not-so-subtle hint regarding the Metaverse by Microsoft’s chairman and CEO Satya Nadella, but it seems everyone is quick to mention to the public and or other companies listening that they are gearing up to bring their A-game to the Metaverse. Whatever that ends up being.

In the meantime, we can predict some of the possible changes to come from this buyout. Microsoft currently has Game Pass, their subscription-based model for Xbox, which recently hit 25 million subscribers. Now’s the time to sign up for the Game Pass subscription before prices go up to match the revamped gaming inventory. Microsoft could potentially lock down new releases and not deliver them on other platforms, i.e., PlayStation, giving them exclusivity and driving subscription sign-ups.

Whatever ends up happening, Microsoft is making big moves to not be left behind in the gaming world or the Metaverse.

Advertisement. Scroll to continue reading.

Jessica Martin escaped from Texas to Austin to receive her degree in English from the University of Texas. When she isn't writing, you can find her outside playing with her kids, camera in hand.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Business News

In a announcement from Mark Zuckerberg, the CEO dropped a surprising piece of information. WhatsApp is the major-money maker for Meta.

Tech News

Apple has been working internally on a brand new product outfitted with a brand new operating system with unique mixed-reality elements.

Business Entrepreneur

Microsoft's latest survey reveals how Gen Z redefine & rediscover hustle and what they think about being their own boss.

Tech News

After some time of Netflix hinting at upcoming changes, details emerge on the partnership with Microsoft on a new ad-supported tier.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.