In the technology sector, there is hardly anything new about smaller companies being acquired by larger players. Bigwigs like Google, Meta and IBM have made many such acquisitions. In its latest move, technology giant Microsoft has completed a huge deal by acquiring Activision Blizzard, maker of the iconic Call of Duty game franchise. The deal is worth $69 bn, the biggest ever in the history of the gaming industry.
Microsoft managed to wrap the deal after getting approval from UK regulators. Bobby Kotick, the Activision Blizzard CEO said he will step down in the near future. On Microsoft’s behalf, chief executive Phil Spencer said the gamers will get a smooth experience. He rebutted accusations made by rival PlayStation-maker Sony. Mr Spencer said gamers not using Microsoft’s Xbox console will still be able to play the game. These include people using devices like PlayStation and Nintendo.
Microsoft has chosen Ubisoft, the popular French video game publisher to distribute Activision's games over the cloud to PCs and consoles. Microsoft will give Ubisoft the right to stream games by Activision outside the EEA for a period of 15 years. However, there is no denying that the new deal will fetch Microsoft huge profits, yearlong. It will control games like Candy Crush, World of Warcraft and COD lineups.
Microsoft is confident that the deal will enhance the demand for its flagship Xbox console. The takeover will go a long way in establishing the company as a giant in the realm of video games.