As evidenced by today's news, it couldn't be more abundantly clear that Microsoft continues to make huge plays for Xbox's future in the gaming industry. Whether it's been the expansion of Xbox Game Pass in the last couple of years, or the advent of backwards compatibility, among many other efforts, Microsoft's been working to reverse the perceived disadvantage it's been at in comparison to PlayStation. Today, Microsoft announced the $68.7 billion acquisition of Activision Blizzard, one of the largest video game publishers in the gaming industry. Topping all previous corporate acquisitions in games previously, several of gaming's biggest IPs are now owned by Microsoft.

To say this massive deal was unexpected is an understatement, especially given the state of Activision Blizzard currently. Rife with controversy due to workplace harassment, toxicity, an ongoing lawsuit by the State of California, as well as the complicity and complacency of Activision Blizzard CEO Bobby Kotick, the outlook of the Call of Duty and World of Warcraft publisher has been bleak. Granted plans for this acquisition were likely first laid before the lawsuits or allegations took place, but they provide an important context to this acquisition. There are certainly positives to Microsoft's acquisition, but it's hard not to ignore the glaring issues that may rise.

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Xbox's Influence On Gaming Extends Even Further

Xbox Activision/Blizzard Deal

One of the most immediate concerns that stems from this announcement is the fact that Xbox continues to grow at a monopolistic rate; a criticism Microsoft as a tech company has often wrestled with previously. That's not to say Xbox has a "monopoly" over gaming quite yet, though it's not unreasonable for these concerns to rise among fans, especially given Microsoft's previous acquisition of Bethesda/ZeniMax for $7.5 billion. Unlike Sony with PlayStation, Microsoft has the ability to financially swing these kinds of massive deals because it has the capital from its tech business as a whole (Windows, Azure, etc.) to dedicate to expanding Xbox's market reach.

Xbox's dominance with Xbox Game Pass has been one thing, but snagging big-name IPs and franchises only to make them exclusive later on isn't sustainable. Phil Spencer, who was also named CEO of Microsoft Gaming as part of today's announcement, has previously been adamant about not taking games away from existing communities, but that doesn't necessarily hold true for future efforts.

Even today, Spencer commented on the acquisition and Xbox exclusivity specifically, stating that it's not Xbox's "intent to pull communities away from [PlayStation] and we remained committed to that." However, Spencer has also mentioned in the past that the acquisition of Bethesda means that The Elder Scrolls 6 will more than likely become an Xbox-exclusive title. It can't be ruled out that future Activision Blizzard games will receive the same treatment.

Activision Blizzard IPs Potentially Falling Under Xbox Exclusivity

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From the perspective of the players, exclusivity is the number one concern with this acquisition announcement. Are IPs like Call of Duty, Overwatch, World of Warcraft, Diablo, and more going to become Xbox exclusive as future entries are developed and published? Will all new IPs retain exclusivity to Xbox moving forward? It's hard to say definitively, but examples like Starfield and The Elder Scrolls 6 may indicate it's more likely than Spencer's comments seem to indicate. At the moment, the upcoming Starfield is confirmed exclusive to Xbox and PC, while additional comments seem to suggest that The Elder Scrolls 6 will end up Xbox-exclusive as well.

Future efforts from Activision could be subject to Xbox exclusivity, whether that be new IPs, or new entries in the Call of Duty or Overwatch franchise. Whether that's timed-exclusivity or permanent platform exclusivity remains to be seen, but exclusivity in some form is possible. Obviously for PlayStation players, that would be a huge blow, especially for a formerly third-party franchise as mainstream (and popular) as Call of Duty. At the same time, Microsoft presumably wouldn't spend almost $70 billion to acquire one of the biggest video game publishers in the industry just for it to continue supporting platforms and companies that it's in direct competition with.

Exclusivity when it comes to Xbox is a tricky situation to navigate, especially since a lot of fans respect Phil Spencer's word and reputation. Spencer emphasizes that it doesn't want to divide player communities, but exclusivity has been confirmed for upcoming titles published by Microsoft as a result of an acquisition, so there's a possibility Activision Blizzard games could be entirely exclusive in the future.

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The Potential For A Better Workplace Foundation Under Microsoft

Phil Spencer says Xbox is making changes to its partnership with Activision Blizzard.

Granted there are some perceivable benefits that could come to Activision Blizzard in the wake of Microsoft's acquisition. Exclusivity aside, Microsoft could potentially provide the many development subsidiaries of Activision Blizzard the necessary resources to improve the development pipeline and foundation of its games. Obviously the big caveat here is the problematic workplace culture that currently exists at Activision Blizzard, and the clear desire by the company to design games like Call of Duty with monetization and profit in mind. None of these issues would've likely changed under Activision Blizzard's former leadership, but Microsoft could incite change.

Microsoft has worked hard to foster a creative and productive foundation at its other first-party studios, so Activision Blizzard could receive the same treatment. It's no secret that games like Call of Duty: Vanguard, Call of Duty: Warzone, and Overwatch have suffered a degree of neglect for a variety of reasons. The organization of employees on strike, rampant cheating issues, controversy and backlash over cheap monetization efforts and microtransactions, bugs and technical issues, among other problems, have all caused a decline in quality in Activision Blizzard-published live service games.

Following an obvious managerial restructuring, redesigning the framework of development at Activision Blizzard (across all its development subsidiaries, Raven Software, Toys for Bob, etc.) could benefit the publisher and its IP as a whole.

The Complicity And Complacency of Bobby Kotick Cannot Remain

Blizzard Call of Duty

However, one other possible upside from this acquisition almost becomes an expectation from many fans, employees, and investors of Activision Blizzard. Bobby Kotick's negligence, willing participation, and defense of the "frat boy culture" established at the many Activision Blizzard development studios is unacceptable. Numerous fans, current and former employees, as well as investors in the company have called for Kotick's resignation, and yet he maintains his post as CEO. Even now, among reports that his tenure will end once the deal is finalized between Microsoft and Activision Blizzard, Kotick remains CEO of the publisher until then.

Assuming the deal is finalized, Microsoft's acquisition does not inherently change any of the lingering workplace culture issues still plaguing Activision Blizzard, but there is some optimism to be had there. Microsoft as a company, from both Microsoft Gaming's CEO Phil Spencer, and Microsoft proper's CEO Satya Nadella, have both emphasized their commitments to "dignity and respect" among coworkers in response to the acquisition. There is the possibility that Microsoft's acquisition could lead to a safer and much more positive workplace environment, assuming it's able to remove problematic personnel and foster a welcoming community of developers.

Unprecedented Acquisition, Unprecedented Issues

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A corporate acquisition of this size has never happened in the gaming industry, even if this is nothing new for Microsoft (LinkedIn, GitHub, etc.). This really is an unprecedented time for the gaming industry, at least in the last decade. This acquisition dwarfs Microsoft's previous acquisition of Bethesda/ZeniMax Media, as well as compared to Take-Two Interactive's acquisition of mobile developer Zynga just last week. The coming weeks/months absolutely mean things are in flux for both Microsoft and Activision Blizzard, especially with the ongoing lawsuit by the State of California, so this may not be the last of what's learned and confirmed from this acquisition.

That being said, there are some potential benefits to Activision Blizzard that could come as a result of the acquisition, even if the negative aspects are pretty glaring at first glance. Microsoft and Xbox's experience with first-party development support could certainly help reframe the development foundation at Activision Blizzard, which in turn could improve the ongoing development of titles like Call of Duty, Overwatch, World of Warcraft, and many more IPs. That being said, Microsoft's acquisition of Activision Blizzard also brings with it a ton of important and controversial baggage that Microsoft needs to address.

In time, the publisher may be able to thrive under Microsoft's wing. However, that can only happen if the toxicity in the Activision Blizzard workplace can be properly addressed and rooted out, giving employees the accountability and respect they deserve after all this time.

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