Last week we heard the news about Xbox acquiring Activision Blizzard for $68.7 billion. To put this in perspective on how big this is, Microsoft has paid $7.5 billion to acquire ZeniMax (Bethesda) in 2020, $26.2 billion to acquire LinkedIn in 2016, and (only) $2.5 billion to acquire Minecraft by Mojang in 2014.

The transaction is expected to close in their fiscal year of 2023 (July 2022 through June 2023). Provided this happens without FTC fanfare, Activision Blizzard will report to Phil Spencer as the new CEO of Microsoft Gaming.

Here’s a video I found that sums this up pretty nicely.

Activision Blizzard Studios and Game Franchises Acquired

This includes studios across multiple divisions within Activision Blizzard including:

• Activision Publishing
• Beenox
• Blizzard Entertainment
• Demonware
• Digital Legends
• High Moon Studios
• Infinity Ward
• King
• Major League Gaming
• Radical Entertainment
• Raven Software
• Sierra Games
• Sledgehammer Games
• Toys for Bob
• Treyarch
• and more

Now, here are the game franchises you can expect to come to Xbox:

• Call of Duty
• Candy Crush
• Crash Bandicoot
• Diablo
• Guitar Hero
• Hearthstone
• King’s Quest
• Leisure Suite Larry
• Overwatch
• Phantasmagoria
• Space Quest
• Spyro
• Starcraft
• Tony Hawk
• Tribes
• Warcraft
• Willy Beamish
• and hundreds more!

Will These Games Be Xbox Exclusive?

At first, no. Microsoft will honor existing CoD contracts with Sony.

Had good calls this week with leaders at Sony. I confirmed our intent to honor all existing agreements upon 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

Some future titles may not make it post contracts. For example, after Microsoft bought Bethesda, we learned that Starfield and The Elder Scrolls 6 will be an Xbox and PC exclusive.

Will All These Games Go to Xbox Game Pass?

This is highly likely. This acquisition will accelerate Microsoft and Xbox’s plans for cloud efforts. They just announced 25 million Game Pass subscribers.

“Upon close, we will offer as many Activision Blizzard games as we can within Xbox Game Pass and PC Game Pass, both new titles and games from Activision Blizzard’s incredible catalog. We also announced today that Game Pass now has more than 25 million subscribers. As always, we look forward to continuing to add more value and more great games to Game Pass.” 

What About Activision Blizzard CEO Bobby Kotick?

Kotick is not included in the org chart. It is estimated Kotick will get a golden parachute and not move over. Until then, he remains as Activision Blizzard CEO.

“Bobby Kotick will continue to serve as CEO of Activision Blizzard, and he and his team will maintain their focus on driving efforts to further strengthen the company’s culture and accelerate business growth. Once the deal closes, the Activision Blizzard business will report to Phil Spencer, CEO, Microsoft Gaming.”

What About the Controversy Surrounding Activision Blizzard’s Workplace?

It’s pretty safe to say the folks at Xbox will turn the ship around. They have already started positive PR on work-related issues.

We’re looking forward to working with our talented, dedicated friends across Activision Blizzard. As a company we’re committed to our journey for inclusion in every aspect of gaming among both employees and players.

— Phil Spencer (@XboxP3) January 18, 2022

As we empower everyone to play, we can build the best, most engaging, most fun entertainment ecosystem anywhere on Earth (and beyond). We can’t wait to create the future together.

— Phil Spencer (@XboxP3) January 18, 2022

“As a company, Microsoft is committed to our journey for inclusion in every aspect of gaming, among both employees and players. 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. 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.”

“Around the world, there is no more exciting venue for fun and connection than video games. And there has never been a better time to play than right now. As we extend the joy and community of gaming to everyone, we look forward to welcoming all of our friends at Activision Blizzard to Microsoft Gaming.”

Conclusion

When this transaction goes through, Microsoft will become the world’s third-largest gaming company by revenue, behind Tencent and Sony. Some of the biggest remaining questions include how existing stale franchises will be treated and how existing infrastructure will operate within Microsoft’s cloud services (like Battle.net).

But these questions barely scratch the surface of what could be possible. We’re hopeful for consumer-friendly options, the revival of classic games, and the continuation of beloved franchises (like Starcraft). All in all, this looks like a great thing. We only hope this acquisition ages well.