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Microsoft to acquire Activision Blizzard

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A bit of wider industry news today. News which completely blows my mind - Microsoft are out to acquire Activision Blizzard. Pending all the regulatory approvals they need to go through which takes times and can be denied.

This continues the very worrying trend of these mega companies amassing huge resources. Microsoft now control a ridiculous amount of publisher and developer teams, easily helping towards more lock-in with Microsoft services and products. For Microsoft, it makes sense of course, since they can continue dumping titles into Game Pass and get more subscriptions for recurring revenue.

Activision Blizzard has been in a lot of hot water lately, which is probably a big understatement. Employees and investors have repeatedly called for the removal of the current CEO, Bobby Kotick. The press release is a bit vague on what will happen with Kotick, as it mentions Kotick "will continue to serve as CEO of Activision Blizzard" and then "Once the deal closes, the Activision Blizzard business will report to Phil Spencer, CEO, Microsoft Gaming". So it somewhat makes it sound like Kotick might only be there until the deal is fully done but it's pretty vague. Probably intentionally vague due to the ongoing issues. Update: Kotick will remain, a Microsoft spokesperson confirmed via email. Update #2: They tried to clarify again later that they were speaking generally about the acquisition so it's anyone's guess what will happen with Kotick (IGN).

This will be an "all-cash transaction valued at $68.7 billion" which is so much money I can't even begin to imagine it.

Microsoft will then own the likes of Activision, Blizzard and King studios with Warcraft, Diablo, Overwatch, Call of Duty, Candy Crash and global eSports activities through Major League Gaming. The press release states this will make Microsoft "the world’s third-largest gaming company by revenue, behind Tencent and Sony".

Since Microsoft isn't quite the same as the Microsoft of old, we might end up seeing more Activision Blizzard games come to Steam and so making it even easier to run them on Linux through Steam Play Proton. Imagine having Diablo, Starcraft, Overwatch, various newer Call of Duty games and so on being a few clicks away on Steam + Linux.

What do you think to this news? The deal is expected to close in 2023.

Article taken from GamingOnLinux.com.
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STiAT Jan 18, 2022
It's not a bad move. Microsoft has no history of aggressive sourcing, and a quite high standard for Employees.

With what Activision/Blizzard produced the past years, completely failing their audience, it hardly could get worse.

I actually do not mind that particular takeover, since they were in the shits management wise and producing games which are good.

I see an issue with Microsoft to buy up so much in the gaming market. Not because it's Microsoft, but it's concentrating the market too much under a single banner and within that management and direction.

I hope though that Microsoft can find talent and accordingly skilled management to pull the cart out of the shits. My guess is that Blizzard would pretty much struggle in future if nothing happened, the current course just was a downward spiral.

Microsoft is not in the game for short term profits, they are a platform holder who are into long term profits. That usually is better for games.

We will see.


Last edited by STiAT on 18 January 2022 at 11:55 pm UTC
TheRiddick Jan 18, 2022
Well if you don't SPEND your billions you will eventually need to pay it to the tax man so of cause this makes sense.

However I do wonder about the developer morals behind MS. I think they did good with the recent HALO release IMO, but we have yet to see what we'll get out of the Bethesda acquisition.
Purple Library Guy Jan 19, 2022
Quoting: TheRiddickWell if you don't SPEND your billions you will eventually need to pay it to the tax man
That idea is so 20th century. Paying taxes is for us little people.
BielFPs Jan 19, 2022
Quoting: F.UltraDepends on what kind of Money MS would throw at then, I think the right amount would make Tencent sell, isn't that their entire business with Epic, to draw up the worth of it to sell it all for a huge profit? Or do we see Tencent as a long time owner?
I meant in a scenario where Tencent wouldn't want to sell the company for whatever reason. Personally I think since the Epic business model is unsustainable in the long term, I don't see any reason Sweeney wouldn't (fully) bend to MS in case of a purchase offer.

Microsoft only need to wait until their stock market comes down for like they did on this case with.
Koopacabras Jan 19, 2022
"under capitalism man exploits man. under communism it’s just the opposite"

:P
slaapliedje Jan 19, 2022
Quoting: RaabenIt's weird seeing so many think this is a good pattern and praising MS for being gamer friendly lately. Does no one else see these grabs as a great lock-in? Give it a little time, buy another beloved studio or three, then start the MS store exclusivity. With no other possibility from any of those shell publishers anymore, it will be a forced success - what Epic tried but with the capital to pull it off. And then, it could even be a simple swap to UWP and game over WINE/Proton.
Seriously.

Within recent years; inXile, Obsidian, Bethesda. Now Activision/Blizzard.

Still laughing that so many journalists are rounding off to 70 Billion... ignoring the 1.3 Billion dollar difference between 70 and 68.7...

https://www.youtube.com/watch?v=tbVb63qPDQ8


Last edited by slaapliedje on 19 January 2022 at 3:36 am UTC
Raaben Jan 19, 2022
Quoting: slaapliedje
Quoting: RaabenIt's weird seeing so many think this is a good pattern and praising MS for being gamer friendly lately. Does no one else see these grabs as a great lock-in? Give it a little time, buy another beloved studio or three, then start the MS store exclusivity. With no other possibility from any of those shell publishers anymore, it will be a forced success - what Epic tried but with the capital to pull it off. And then, it could even be a simple swap to UWP and game over WINE/Proton.
Seriously.

Within recent years; inXile, Obsidian, Bethesda. Now Activision/Blizzard.

InXile and Obsidian still hurt. Bought, played, and loved all their Linux releases and was stoked to have some of my favorite studios native-friendly and then bam.
metalinux Jan 19, 2022
I have my doubts, but I do hope this acquisition tries to fix some of the culture at Activision-Blizzard, from all of the reports of mass layoffs and underpaid workers, it does not sound like a pleasant place to work.

Transactions like $68.7 billion dollars to buy companies??? If even a small fraction of that went back to the open-souce projects that these corporations rely upon, what a world we would live in.


Last edited by metalinux on 19 January 2022 at 4:15 am UTC
tpau Jan 19, 2022
I hope that Microsofta recent move to opensource will open up blizzards games for native Linux versions and an open source version of battle. net

But I guess the main thing is better working conditions for all employees and that we still get the same great games over our old channels without steam and the ms store.
Funding is save now :)
wof8317 Jan 19, 2022
If it means that Heretic II and Hexen II: Portal of Pravus finally gets put on Steam and GOG, then I call it a good thing on my book (though I still hate Microsoft)
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