Is Microsoft buying Call of Duty?

Is Microsoft Buying Call of Duty?

The gaming world is abuzz with excitement and speculation about the rumored deal between Microsoft and Activision Blizzard, the creator of the popular Call of Duty franchise. The big question on everyone’s lips is: is Microsoft really buying Call of Duty?

To answer this question directly: yes, Microsoft is buying Activision Blizzard, the company behind the popular Call of Duty series, in a massive deal valued at $69 billion.

What’s Going On?

The agreement between Microsoft and Activision Blizzard was announced on January 18, 2022, and the two companies have since been busy hashing out the details. According to reports, Activision Blizzard will become an all-new subsidiary of Microsoft Gaming, and the agreement also includes plans for Microsoft to keep current Call of Duty titles, as well as future releases, available on PlayStation consoles through a "bogus" deal agreement until 2027. (See our article on the importance of this agreement for full details.)

Why Does it Matter?

Why would Microsoft want to shell out $69 billion to acquire a game developer and publisher, including the Call of Duty franchise? For starters:

• Expanding Horizons: By acquiring Activision Blizzard, Microsoft Gaming (formerly Xbox Game Studios) gains access to the massively popular Call of Duty series, as well as other beloved franchises like Skylanders, Destiny, and Diablo.
• Building Out the Xbox Ecosystem: Microsoft has been pouring money into building out the Xbox ecosystem, and Call of Duty is a highly anticipated addition to the line-up.
• Shutting Down the Competition: Some might speculate that Microsoft is shutting down the competition by limiting PlayStation’s access to certain game titles. While PlayStation does have some exclusivity clauses, this deal paves the way for Cross-platform play between Xbox, PC, and PlayStation!

What’s the Next Steps?

As negotiations unfold, there are likely several key areas to monitor for updates:

• Board Approval: Activision Blizzard’s board of directors has been mulling over the Microsoft bid, and an acquisition might be subject to review from regulatory bodies like the SEC and FTC.
• Integration: Microsoft plans to integrate Activision Blizzard’s studios into its internal divisions, allowing for even better collaboration and game development between the two companies. Watch for changes in how their games are developed and managed.
• Staff Cuts and Rebalancing: In the context of the deal, rumors indicate that Activision Blizzard is expected to reduce workforce after the acquisition. There are also discussions about staffing reductions at Xbox Game Studios and other areas within the merged entity.

Potential Controversies and Rumblings

While the industry’s excitement around the prospect of Call of Duty entering the Xbox ecosystem is high, there are some issues brewing:

• Xbox vs PlayStation: Expect passionate debates and memes centered on the debate of how a Call of Duty merger would impact the gaming communities between Xbox and PlayStation
• Employee Uncertainty: The uncertainty surrounding changes within Activision Blizzard may prompt some employees to choose, and some have reported on the challenges faced, highlighting the potential risks tied to this massive acquisition!

The gaming world is awaiting word on how the dust will settle and what, specifically, the deal terms hold for both parties! Meanwhile, keep an ear open for the next juicy gaming news!