Microsoft’s gaming business prospects depend on a deal with Activision Blizzard

Technology giant Microsoft Corp. (MSFT) continues its acquisition of video game maker Activision Blizzard. At the same time, the deal has not received the approval of all regulators, if Microsoft will receive additional advantages in the gaming market. Acquiring Activision Blizzard for almost $70 billion began in January 2022 and is now undergoing the approval process by regulatory authorities worldwide. The first positive response came from Saudi Arabia last week, and now Microsoft is awaiting approval from other regions, especially from the US, UK, and Europe. 

Each region has the right to block the transaction or add new conditions. According to the initial plan, the acquisition should be in mid-2023. If the deal between Activision Blizzard and Microsoft is approved, the latter will be in the top three global suppliers of video games. Currently, the leading suppliers are Tencent and Sony, while Microsoft is behind Apple and is in fourth place. Recall that Activision Blizzard owns many popular game franchises, including Call of Duty — the second best-selling series of video games in history. By 2021, 400 million copies had, slightly less than Tetris’ record of 496 million. 

In 2021, Activision Blizzard management announced that since 2003, the Call of Duty franchise has brought in about $27 billion. In general, Activision Blizzard’s game library can significantly improve the commercially successful subscription service for games from Microsoft Xbox Game Pass. The service has been operating since 2017 and has since grown to 25 million users. According to experts from Wall Street, this segment can generate revenue of $4 billion by the end of 2022. Still, such a popular game as Call of Duty, plus other Activision Blizzard franchises, can further increase the service’s popularity.