The Microsoft-Activision Blizzard Acquisition Saga Concludes: A New Era Begins

The long-awaited news that Microsoft has secured approval from the UK regulator to finalize its acquisition of Activision Blizzard brings a sense of relief. Initially, the prospect of exploring this complex and intriguing process with various legal and business leaders was engaging. However, as the saga dragged on, fueled by opposition from PlayStation and concerns raised by regulators about its potential impact on the video game industry, the tone shifted. The debate became increasingly heated, with excessive rhetoric both publicly and behind the scenes, including claims that the UK was 'closed for business' and mocking memes from game executives. Fortunately, this chapter has come to a close, with both the EU and UK regulators, the CMA, imposing significant concessions on Microsoft, particularly regarding streaming. The focus on the potential impact on PlayStation has diminished, given the dominance of the PS5, alongside Nintendo, in the console market, a trend unlikely to change soon. The latest sales figures, with PS5 maintaining its lead over Xbox, support this observation. Microsoft's recent releases have not been able to match the offerings of its competitors, including Nintendo. Although Starfield boosted sales and engagement last month, PlayStation maintained its lead in many territories. Looking ahead, the long-term effects of this deal on the console landscape are anticipated to be positive, not in terms of console sales but in fostering competition. Since most of Activision Blizzard's major games, such as Warcraft, Diablo, and Candy Crush, are centered on PC and mobile platforms, the significant console title, Call of Duty, presents an opportunity for competitors to emerge, whether first-party or third-party, over the next decade. This deal is expected to create more competition, both in console hardware and within genres like shooters. The primary concern was the deal's potential impact on the future of streaming and subscriptions, which led to Microsoft's concessions on streaming rights to alleviate regulatory concerns. Now, the real work begins as Microsoft and Activision Blizzard integrate to grow and transform the video game industry. Questions abound, including how Microsoft will balance its 'limited integration strategy' with the need for potential integration among its three game publishing organizations - Xbox, Bethesda, and now Activision Blizzard. The role of Blizzard in Microsoft's PC games business, including Game Pass, and the impact of Call of Duty on this service are also of interest. Furthermore, the implications of this deal on the mobile gaming market and the future of game sales, especially for independent creators, are significant. The decision to sell off streaming rights to the Activision Blizzard library also raises questions about the future of gaming. With the acquisition saga finally over, the industry can now delve into these questions and concerns, exploring the potential impact of this deal on the future of video games.