Microsoft Considered Acquiring Zynga Before Turning Attention to Activision
In a surprising revelation during the ongoing Microsoft FTC trial, Xbox boss Phil Spencer disclosed that Microsoft had seriously considered acquiring mobile game giant Zynga before its acquisition by Take-Two Interactive. Spencer explained that Microsoft was looking to expand its presence in the mobile game space but faced challenges in developing a winning strategy organically.
According to Spencer, Xbox recognized that mobile gamers have different preferences compared to traditional console gamers. He stated that mobile gamers are not seeking the same console experiences on their mobile devices, and console gamers are not demanding a dedicated console experience on mobile. In an attempt to address this issue, Microsoft explored the possibility of acquiring Zynga.
However, Take-Two Interactive ultimately acquired Zynga for a staggering $12.7 billion, making it the largest game company acquisition in history at the time. Spencer admitted that Microsoft had invested a significant amount of time in pursuing the Zynga acquisition. However, the company realized that it needed something even bigger to establish a strong foothold in the mobile gaming business.
Spencer explained, “We needed to have something that was even bigger than what Zynga was given our very small starting space in the mobile gaming business.” He expressed respect for Zynga and its accomplishments but believed that Microsoft required a more substantial opportunity to make an impact in the mobile gaming industry.
In November 2021, Microsoft shifted its focus to the acquisition of Activision Blizzard. Spencer highlighted that Activision is the largest publisher of mobile content outside of China, thanks to franchises like Candy Crush developed by King, a subsidiary of Activision Blizzard. Microsoft saw the potential in Activision’s portfolio and the engagement it had already established in the mobile gaming market.
Spencer revealed that he had discussions with Amy Hood, the CFO of Microsoft, to explore the mobile opportunities available in the market. The familiarity and history of collaboration between Microsoft and Activision played a role in the decision to pursue the acquisition. However, the primary factor was the extensive portfolio and strong engagement that Activision had achieved in the mobile gaming sector.
Interestingly, this is not the first time Microsoft has considered acquiring Zynga. Reports suggest that the company explored the possibility back in 2010 when Don Mattrick was still leading the Xbox business.
The Microsoft FTC trial continues to unveil intriguing insights into the company’s strategies and ambitions. It has shed light on Microsoft’s pursuit of expansion in the mobile gaming industry and its decision to turn its attention to Activision Blizzard. As the trial progresses, more details are expected to emerge, providing a deeper understanding of Microsoft’s plans and the dynamics of the gaming market.
About the Author:
Logan Plant is a freelance writer for IGN, specializing in video game and entertainment news. With over seven years of experience in the gaming industry, he has contributed to various publications, including IGN, Nintendo Wire, Switch Player Magazine, and Lifewire. Connect with him on Twitter @LoganJPlant.
In This Article:
– Microsoft
– Zynga
– Take-Two Interactive
– Activision Blizzard
– Mobile Gaming
How does Microsoft’s acquisition of Activision align with its strategy of expanding its gaming empire?
Ustry.
As a result, Microsoft turned its attention to Activision, the gaming giant behind popular franchises like Call of Duty and Candy Crush. In January 2022, Microsoft announced its acquisition of Activision for a staggering $68.7 billion, solidifying its position as a major player in the gaming industry.
Spencer revealed that the decision to pursue Activision instead of Zynga was driven by several factors. Firstly, Activision’s portfolio includes a wide range of successful console and mobile games, making it a more attractive and diverse asset for Microsoft. Secondly, the acquisition of Activision brings with it a dedicated and experienced team that understands the mobile gaming space, which Microsoft believes is crucial for success in this market.
Moreover, Microsoft saw an opportunity to leverage Activision’s strong intellectual property (IP) portfolio, including popular franchises like Call of Duty and World of Warcraft, to drive growth and engagement across its gaming platforms. With these iconic titles under its belt, Microsoft aims to deliver compelling experiences to a broader audience, including mobile gamers.
While the decision to pursue Activision instead of Zynga may have been surprising to some, it aligns with Microsoft’s broader strategy of expanding its gaming empire. With its Xbox consoles, Game Pass subscription service, and now the addition of Activision, Microsoft is well-positioned to compete with other industry giants like Sony and Nintendo.
The acquisition of Activision also fits into Microsoft’s larger vision of creating a metaverse, an interconnected digital universe where users can engage in various forms of entertainment and social interaction. By bringing Activision’s vast library of games within its ecosystem, Microsoft aims to create a seamless gaming experience across devices and platforms, including mobile.
In conclusion, while Microsoft did consider acquiring Zynga, its decision to pursue Activision instead showcases its ambition to become a dominant force in the gaming industry, particularly in the mobile gaming space. With the acquisition of Activision, Microsoft has taken a significant step towards realizing its vision of a connected gaming future.