Now that Microsoft has been given the green light to proceed with its US acquisition of Activision Blizzard King, we’ve seen mixed opinions from members of the gaming world as to whether this would be a good or bad thing for consumers. With the deal likely to close in the near future now that most territories (except the UK) are in it, we’ve decided to clash and talk about whether a merger is a positive or negative change for the industry, with Alex defending the acquisition and Ben against it.
Alex – For:
There’s good reason to be cautious about an Activision Blizzard acquisition. We’re headed into unknown waters with this massive gaming deal, as Xbox controls one of the biggest publishers around, creator of one of the biggest franchises in Call of Duty. However, I believe many of Sony’s complaints about how this will give Microsoft a gaming monopoly are exaggerated. If the deal goes through (and it looks more and more every day as if it will), this in no way spells the end of the world for Sony, nor does it give Microsoft a monopoly over games.
It certainly gave Microsoft some skin in gaming, but when we look at the way the gaming market has shifted over the last decade, Xbox has largely fallen by the wayside. There are die-hard Xbox fans out there, but Sony and Nintendo have been leading the way for a long time in terms of console sales and receipt of their exclusive titles. Microsoft’s buy-everything strategy to hopefully make a great Xbox exclusive has been hugely hit and miss, but with a giant like Activision Blizzard on its side, we could see a shift in this pattern. Even if you think I’m just inhaling copium here, and Xbox can’t return to its former glory, then surely that also means Activision Blizzard’s acquisition isn’t such a bad thing, as it doesn’t give Xbox a monopoly at all, it doesn’t matter if we get some great games from this or not.
In my opinion, the real reason Sony has been chasing Microsoft so hard in the courtroom is because it prefers not to have to deal with true competition. From a business perspective, that’s understandable, but we as consumers will only benefit from the competition. If Sony and Microsoft go head-to-head like the old days, then it’s likely that both giants will bring their A-game to entice consumers to each platform. Also, while we’re on the topic of games, we might as well discuss the possibility that the long-dead franchise owned by Activison Blizzard could make a comeback thanks to this acquisition. We won’t be spending too much time focusing on expectations rather than the real reasons why this acquisition isn’t a bad thing for gaming, but the prospect of a real Spyro or Guitar Hero return should be more than enough to get you excited about the prospect of a deal going through.
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One more major point before I was undoubtedly torn to shreds by Ben. I think that if this deal goes through, hopefully Xbox can restructure Activision Blizzard to remove those who have been the reason for its declining reputation in recent years. This may sound as far-fetched as Spyro’s return, but with Xbox taking over, it’s possible that those at the top, overseeing the abysmal workplace culture at Activision Blizzard, could be shifted. We live in a world where these people – wherever they end up – are going to have big paychecks, but hopefully for Activision Blizzard’s sake, there can be a bit of restructuring when Xbox takes over. Again, this could not have happened, but it certainly would not have happened if Activision Blizzard had been left as is. Overall, though, I think the competition created in the gaming market by deals is enough to find support within it. Call of Duty is a big deal, but there are plenty of other games that can sell millions of copies and consoles too.
Ben – Against:
I’ll be honest, I’ve never really endorsed this deal. I love Xbox, in fact, I’d say I’m an Xbox fan first and foremost when it comes to choosing between different console families, but at the same time, I understand that Xbox is a Microsoft product, and Microsoft is literally one the biggest company in the world. The company Bill Gates founded is worth so much money that it’s hard to really understand, and this is why Microsoft could only dump $70 billion on game publishers. To understand the true value of that amount of money, if we look Forbes’ assessment of the top 30 football clubs in the world, the total is less than what Microsoft paid for Activision Blizzard King. This is absolutely ridiculous money.
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But the value of the deal isn’t the only reason why I think it’s ridiculous that Microsoft is buying this publisher. The truth of the matter is that the Xbox and the Xbox Game Studios family have become a shadow of what they should have been. Microsoft already has more developers than Sony, but has a much less efficient pipeline and delivers generally less interesting content. It shouldn’t cost a fortune to bring in more developers to match what its most direct competitors are doing, especially considering these competitors are worth peanuts when compared to Microsoft.
When you also consider the trove of IP that Microsoft already owns and can’t properly use to its advantage, you also have to wonder what a good Activision Blizzard King IP would do. Sure, Call of Duty is Call of Duty, and Diablo, Overwatch, and World of Warcraft should be able to fend for themselves, but otherwise, these companies are made up of smaller IPs that weren’t used properly in the first place, so why would I should feel confident that Microsoft will treat them better?
Many would say that from a consumer standpoint, this deal is a win-win. Activision and Blizzard games on Game Pass at some point, perhaps even better managing the rather horribly managed Activision at the executive level. All of these things are valid points, but at the same time, I can’t help but be a bit cautious about the promises Microsoft makes. Activision and Blizzard games continue to roll out across all platforms, hope for titles coming to Game Pass, etc. Don’t forget that Microsoft is one of the world’s largest corporations, and you didn’t get to that size without putting your own interests above the needs of the masses. With this said, what will happen if Game Pass is no longer a sustainable business approach or if people tend to stay away from the service? What will happen after 10 years when the Call of Duty deal with Sony runs out? If I had to guess, we’re headed for a world where this huge franchise is Xbox exclusive and potentially not even on Game Pass.
Not only is this what concerns me, but how this is a direct act of war from Microsoft. With Xbox looking to consolidate most of the gaming world under its banner, you have to assume that Sony will be looking to do something similar on an admittedly limited budget, which would in turn trigger further retaliation from Microsoft and so on. Think about it, if the massive Activision Blizzard King is on the auction block at the right price, what’s stopping these giants from fighting over Ubisoft, Square Enix, Capcom, CD Projekt Red, and even bigger fish like Take-Two Interactive? and Electronic Arts.
The gaming industry is worth an absolute fortune and will only grow in value over time, and for me this mega merger is a sign of what’s to come and it terrifies me. Microsoft doesn’t need Activision Blizzard King to compete with other publishers and console manufacturers, it needs better management and tighter pipelines, and this deal has always been seen as greedy and unnecessary to me, and I can see this eventually leading to rich people become richer at the behest of consumers and players.
2023-07-15 10:23:02
#HeadtoHead #Merger #Activision #Blizzard #King #Microsoft
