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Microsoft-Activision deal: Many questions remain after Microsoft’s purchase of Call of Duty and Call of Duty for $68.7billion. World of Warcraft manufacturer Activision Blizzard. Analysts agree that this is the largest acquisition in the videogame space.
Clear Tips’ lead analyst stated that “This acquisition undoubtedly reinforces Microsoft’s position in gaming across all fronts globally, including consoles, mobile, and PC as well as cloud gaming, and subscriptions.” of Omdia, George Jijiashvili. It demonstrates Microsoft’s commitment towards gaming and will undoubtedly impact the dynamic of the entire gaming industry.”
Jessica Gonzalez, the founder and community organizer for the ABetterABK worker coalition, was available to give me a clear picture of what is next for Activision employees. Blizzard and its future games.
Will the Microsoft/Activision deal affect union efforts?
After a year of brutal harassment allegations, Activision Blizzard was acquired. Numerous reports have surfaced about mismanagement, walkouts by employees, and other incidents.
Activision Blizzard has yet to recognize some strikes in the company. This includes one from Call of Duty: Warzone’s Raven development team. It is currently on strike in order to get better deals for its QA staff. These issues not only put Activision Blizzard in a position to sell but also encouraged developer unionization.
“The news doesn’t change the union efforts. We will continue to push forward.”
Activision Blizzard’s developers are joining the ABetterABK workers alliance, and plan to eventually unionize. This deal may mean Activision Blizzard will change its management in 2023. However, Gonzalez insists that the deal will not stop the efforts.
Clear Tips is told by Gonzalez that “the news does not change the union efforts.” “We continue to push forward. Activision refuses acknowledgement that the strike is taking place right now. This will continue to worry me.
Gonzalez claims Microsoft is “mixed bag” when it comes to unionization. Microsoft Gaming CEO Phil Spencer even admitted in an interview to The Washington Post that he has not had much experience working with them.
Spencer stated, “We’re going talk about what allows them to do their most work, which, as you can see in a creative sector, is the most important thing for us.”
Gonzalez, like many others, believes organizing is the way to empowerment. Gonzalez stated, “I will not be fully rested until employees unionizes and has that bargaining power.” It’s long overdue in this industry.
Will Activision Blizzard CEO Bobby Kotick Resign?
Although there has been a lot speculation about Kotick’s future role, we don’t really know the outcome. According to the Wall Street Journal, the controversial CEO will resign once the takeover is completed. However, we know that his current contract expires in March 2023.
ABetterABK has been calling on his resignation since months. There are multiple reports that he knew about Activision Blizzard’s problems long before the 2021 lawsuits. He will be leaving the company with a large paycheck, although this acquisition may bring him some relief.
Will Activision Blizzard Games Be Xbox Exclusives?
The question of exclusivity is a key issue when it comes to Microsoft acquisitions. According to Phil Spencer, Microsoft Gaming CEO, Call of Duty won’t be leaving PlayStation platforms soon.
I had good calls this week with the leadership at Sony. I confirmed our intention to honor all existing agreements following the acquisition of Activision Blizzard and our desire to keep Call of Duty on PlayStation. Sony is an important part of our industry and we value our relationship.
– Phil Spencer (@XboxP3) January 20, 2022
Clear Tips was told by Serkan Toto, CEO of Kantan Games, that Microsoft would not spend this much money to make exclusive games.
Toto stated that these brands would be exclusive to the console and all of them. “There might be some games that have been lost, such as titles with services like war zone, which are currently in operation. Microsoft did not spend billions on software for competing platforms.
It appears that the Call of Duty series, or at least War Zone, will be available on all platforms for the foreseeable future. However Activision Blizzard has many other franchises such as Overwatch and Diablo which could become exclusive. Jijiashvilli says that, regardless of whether the Call of Duty series is only available on Microsoft platforms or not, having new Activision games on Xbox Game Pass at release day could be a big boon for Xbox since these consumers will decide whether to buy the Xbox Series or the PS5.
“Microsoft did not spend all these billions to provide software to other platforms.”
Clear Tips’ breakdown shows that Microsoft isn’t changing existing agreements or stopping the updating of live service games on specific platforms. You shouldn’t expect Microsoft or Supervision games to be removed from the PlayStation or Nintendo stores. Spencer says that Call of Duty games will continue to be available on PlayStation for the foreseeable future.
Xbox Game Pass is available on PCs, Xbox consoles and phones as well as web browsers. This means that there will always be a place to play exclusive Activision Blizzard titles. These exclusives will make Xbox Game Pass even more attractive, and it is highly probable that all Activision Blizzard games that are supported on modern platforms (including past titles) will be available through Xbox Game Pass. Activision games beyond Call of Duty after June 2023 will most likely be Xbox exclusives. However, we are not sure if this applies to surveillance II Y Devil V.
How will Sony respond to the Activision Blizzard acquisition?
This acquisition could be the most significant blow Microsoft has dealt Sony. After the acquisition announcement, Sony’s market capitalization dropped by more that $20 billion. Although this may not be significant to average gamers, it shows that Sony may have to respond to the acquisition.
As it seeks to be more competitive with Game Pass, we may see Sony include some day-one releases in its purported subscription renewal.
These are Sony’s sole comments to The Wall Street Journal. “We expect Microsoft will honor contractual agreements and continue ensuring that Activision gaming is cross-platform.”
Sony is expected to be fine for the near term, but it may lose popular series such as Crash Bandicoot or Spyro the Dragon if its contractual agreements expire. Clear Tips is told by Toto that Sony will respond more fully on its next earnings call.
Jijiashvili says that the acquisition of Activision Blizzard could force Sony to make bold moves regarding its subscription offerings. In an attempt to compete with Game Pass, Sony could include some day-one releases in its subscription renewal. I expect Sony to increase its unique strengths such as a stronger catalog, PlayStation VR, and other Sony entertainment assets.
What’s next?
The acquisition is still being approved in full and will not be completed until June 2023. The syndication movement will continue in the interim, but Microsoft, Activision Blizzard and Sony won’t be able to answer any of the other questions for 18 months. What will Microsoft do next?
“It will definitely have an impact upon the dynamics of games industry in general.”
Toto says, “In terms mega deals, this is probably what Microsoft requires at the moment.” They might still be able to do big deals in other countries if they feel crazy.
Jijiashvili believes that this is another step in Microsoft’s grand plan to create an all-encompassing gaming ecosystem across multiple devices. He says that this is a temporary improvement for Xbox. Their long-term goal is to create a multi-device, all-encompassing gaming ecosystem.
Jijiashvili says that Xbox will continue to be focused on its console business for at least the first decade of this century, but we expect to see a higher priority given to cloud and subscriptions in the second half. It is a clear sign of Microsoft’s commitment and will undoubtedly impact the overall dynamics of the gaming market.
