Why did Microsoft buy Activision for so much?

Microsoft says it needs the deal to boost the Xbox

Microsoft says buying Activision would let it put more big titles on Game Pass - its Netflix-style subscription - and make more games for mobile phones, where there are big profits to be made.

Why did Microsoft overpay for Activision?

Most people think that Microsoft overpaid with the $70 billion price tag on Activision Blizzard. Not necessarily. People tend to look at this as a consolidation deal, where Microsoft buying a company at a decline, which is not. The important point of the deal was to facilitate Category Acceleration.

Why did Sony let Microsoft buy Activision?

As part of its argument, Sony puts forward the idea that after acquiring Activision Blizzard, "Microsoft would be able to: increase console and game prices for Xbox users (including those that had switched from PlayStation); increase the price of Game Pass; and reduce innovation and quality."

What would happen if Microsoft bought Activision?

Microsoft specifically chose Activision Blizzard for a reason. Activision Blizzard own the Call of Duty franchise, one of the biggest in gaming history. If Microsoft's acquisition deal closes, they will own the Call of Duty series, and be able to do whatever they want with it on their Xbox systems going forward.

Did Microsoft get blocked from buying Activision?

The planned Microsoft Activision acquisition has been provisionally blocked by the UK's antitrust watchdog, the Competition and Markets Authority (CMA) …

What Will Microsoft Do If It Can't Buy Activision?

How long will it take for Microsoft to own Activision?

Microsoft's planned acquisition of Activision Blizzard, which is a leading developer and publisher of console, online, and mobile games is expected to be completed in June of 2023.

How much is Microsoft being sued for?

Microsoft Sued by Gamers Over $69 Billion Activision Deal (2)

What will Microsoft do with Call of Duty?

Microsoft says it will bring Call of Duty to Nintendo for 10 years.

What does Microsoft buying Activision mean for gamers?

The deal would grant Microsoft ownership over globally recognized franchises like Call of Duty, World of Warcraft, and Candy Crush, to name a few. It also creates a new division in the company, Microsoft Gaming, to be led by the company's head of its Xbox division, Phil Spencer.

Is the Activision deal finalized?

Microsoft acquisition of Activision to be finalised by June 2023.

Why Sony trying to stop Activision deal?

After the acquisition, Microsoft would have the ability to make the FPS an Xbox exclusive. Sony believes that this would drain consumers away from PlayStation. According to Sony, Microsoft has a pattern of “acquiring development studios 'and making their upcoming games exclusive to Xbox'.”

Is Sony trying to stop Microsoft from buying Activision?

Sony is once again reportedly trying to convince regulators to block Microsoft's acquisition of Activision Blizzard, and once again, citing the fact that they don't believe Microsoft will offer them parity on Call of Duty once they own it.

Why did Microsoft buy Call of Duty?

“Its vision for the transaction is simple: Xbox wants to grow its presence in mobile gaming, and three-quarters of Activision's gamers and more than a third of its revenues come from mobile offerings,” according to Microsoft.

Why did they sell Activision?

Activision Blizzard has been embroiled in a sexism and workplace discrimination crisis for the past six months, the effects of which directly led to the announcement on Tuesday that Microsoft plans to buy the publisher for a record-breaking $68.7 billion, according to a report from The Wall Street Journal.

What are the odds of Microsoft acquiring Activision?

Microsoft acquisition of Activision remains 'less than 50-50' chance amid FTC lawsuit: Analyst. CFRA Vice President of Equity Research John Freeman reacts to the outlook of Microsoft's long-awaited acquisition of Activision-Blizzard when weighed against the FTC's latest antitrust lawsuit against the tech company.

Who is winning the Activision deal?

On Feb. 8, the U.K.'s Competition and Markets Authority announced it had “provisionally concluded” its investigation into Microsoft's acquisition of Activision Blizzard, and decided the deal could harm competition in the games market in a way that would have an impact on gamers.

Does Microsoft buying Activision mean no more Call of Duty on PlayStation?

Microsoft in a statement has said it has no plans to take Call of Duty away from gamers and the majority of them are on PlayStation. Keeping the franchise on PlayStation is important for the Xbox business and the economics of the acquisition.

Why is Microsoft buying game companies?

The buying spree that began with Mojang seems fuelled by Microsoft's ultimate aim is to bring AAA titles to Xbox Game Pass, a cloud-based gaming service that has now over 25 million subscribers. For Microsoft, the future of video games is in the cloud, a new way to play games without needing a dedicated console.

Will cod leave PlayStation?

PlayStation owners can breathe a sigh of relief. For the last time: Call of Duty isn't leaving PlayStation.

Will Microsoft bring cod back to Steam?

Last night, Spencer announced on Twitter that Microsoft has entered a 10-year commitment to bring Call of Duty back to Nintendo. In a follow-up tweet, Spencer states the series will remain on Steam as well.

Who actually owns Call of Duty?

Call of Duty is a first-person shooter video game franchise published by Activision.

Has Microsoft broken any laws?

The Verdict

Microsoft lost the case against the government, and the presiding judge, Thomas Penfield Jackson, ruled that the company violated multiple sections of the Sherman Antitrust Act. However, the trial was not a smooth one.

Did the US government break up Microsoft?

On April 3, 2000, Jackson issued his conclusions of law, holding that Microsoft had committed monopolization, attempted monopolization, and tying in violation of Sections 1 and 2 of the Sherman Antitrust Act. On June 7, 2000, the District Court ordered a breakup of Microsoft as its remedy.

Why are gamers suing Microsoft?

The proposed acquisition would give Microsoft "both the means and motive to harm competition" by manipulating pricing, making games worse on its competitors' video game consoles, "or withholding content from competitors entirely, resulting in harm to consumers," the agency said in a press release.