Following months of controversial news surrounding Activision Blizzard, Microsoft has stepped in and acquired the company.
Microsoft wants to buy the company behind titles such as "Call of Duty," "World of Warcraft," "Diablo," "Overwatch," and others, according to Xbox chief Phil Spencer's official news release.
The all-cash purchase is valued at $68.7 billion, and Microsoft claims it would position the business as the third-largest gaming company by revenue, trailing only Tencent and Sony.
According to a news release announcing the acquisition, Bobby Kotick, CEO of Activision Blizzard, would remain in his position. Employees at Activision have previously staged walkouts and demanded that Kotick resign after supposedly being aware of rampant harassment and discrimination issues at the company for years.
Activision Blizzard was sued by the California Department of Fair Employment and Housing (DFEH) in July for encouraging a culture of "constant sexual harassment," and since then, more employees have come forward with allegations of sexual harassment, and the company settled for $18 million with the US Equal Employment Opportunity Commission in September. According to estimates, approximately 40 Activision Blizzard employees have "exited" the company since July, and the settlement is currently being appealed.
Microsoft has already made its immediate plans for Activision Blizzard clear, announcing that it will offer as many new and old Activision Blizzard titles as possible through Xbox Game Pass and PC Game Pass. It also stated that the acquisition of Activision Blizzard's franchises will speed its plans for Cloud Gaming and will allow them to be enjoyed on a range of devices in the future.
This is Microsoft's second major acquisition, following the Bethesda acquisition in 2021.
"We deeply value individual studio cultures. We also believe that creative success and autonomy go hand in hand with treating every person with dignity and respect," Microsoft said of the acquisition. "We hold all teams, and all leaders, to this commitment. We're looking forward to extending our culture of proactive inclusion to the great teams across Activision Blizzard."
It's also worth noting that the deal isn't entirely done yet, according to Microsoft. Activision Blizzard and Microsoft Gaming will continue to operate independently until this acquisition closes at an undisclosed time.
However, there are a few key concerns. Microsoft didn't indicate how many titles from Activision Blizzard would be exclusive to Xbox platforms or Windows desktops. It's also unclear how big Microsoft's involvement in the development of major franchises will be.
Microsoft is unlikely to lock "Call of Duty" and other major games to the Xbox in the near future, however, as PlayStation sales account for a significant portion of Activision Blizzard's revenue, and the company's influence in the games industry would be severely diminished if it abandoned the platform.
