Xbox has been hitting he headlines after Microsoft announced it is acquiring Activision Blizzard for an eye-watering $68.7 billion, roughly $8 billion greater than Nintendo’s current net worth. Gamers have since been pondering what this means for PlayStation, the future of the game industry, but also industry competition. With Microsoft now effectively in control of many major franchises and beloved game characters, some which are famously associated with Xbox competitors, questions are being raised about whether this is really in the interest of gamers.Activision Blizzard has recently been under scrutiny for poor treatment of employees and a toxic work culture. Reports indicated that Activision Blizzard CEO Bobby Kotick was against the deal, and could receive $350 million from the acquisition if Microsoft tries to get rid of him early, with calls for him to resign or be fired. The deal will give Microsoft control of a huge portfolio of games, but risks dragging the company into the Activision Blizzard controversies. In a press release, Microsoft described the acquisition as a move that will “accelerate growth” in its gaming business and “provide building blocks for the metaverse,” pushing the idea that this move will bring games to more platforms.On Twitter, gamers are particularly interested in what implications this acquisition has for some major franchises and future Xbox exclusives, with ownership changing hands to Microsoft. The company now effectively owns Overwatch, Call of Duty, Crash Bandicoot, Spyro, and many other major titles. But it’s the latter two titles which dig in for PlayStation fans, given they were once PlayStation exclusives, and are synonymous with the PlayStation brand, sometimes described as “PlayStation’s answer to Mario.”
Others are questioning what this means for competition. Some commentators have asked whether the move by Xbox is anti-competitive, and what it means for a company to own competing, genre-defining franchises. The sheer scale of this acquisition means a number of significant games will now be consolidated to Microsoft’s ownership. For example, Call of Duty and Halo are now under one roof, as is World of Warcraft and Diablo. The amount of IP changing hands is stunning, with some gamers concerned about what this deal could mean for innovation and consumer choice.
Xbox boss Phil Spencer has attempted to address some of these anxieties, recently acknowledging that Call of Duty will remain on PlayStation. The company has been in discussions with Sony, with Spencer stating Xbox will "honor all existing agreements," claiming they value their relationship with the PlayStation-maker.
Whether the acquisition is good news or bad news for gamers remains to be seen, though gamers will have many differing opinions about it. It's also looking unlikely that the Microsoft Activision deal will be stopped by antitrust laws, with a legal expert recently dismissing the idea. What is undeniable is that, if the deal goes through, the landscape of the gaming industry will have shifted quite substantially. It’s unlikely that Spyro or Crash Bandicoot are going to be ripped out from the PlayStation brand in the short future, but Microsoft probably isn’t paying $68 billion to get into PlayStation publishing long-term.
This isn’t the only major acquisition happening at the moment. Take-Two recently acquired Zynga Interactive for $12.7 billion, taking on its mobile portfolio including FarmVille and Words with Friends. Truly, 2022 is shaping up to be a year of great change for game publishing and console competition. Hopefully it will end up being positive for consumers.