Few things are as perpetually uncool as a tech behemoth, but this week Microsoft gets to play the role of savior.
The company on Tuesday agreed to buy Activision Blizzard for $68.7 billion, continuing Microsoft’s strong investment in providing content for its Xbox gaming ecosystem, primarily the Game Pass subscription service. The move comes as Activision Blizzard has been embattled in allegations of workplace harassment and gender discrimination, which has resulted in more than one staff walkout and calls for Chief Executive Bobby Kotick to resign. (So far, Kotick is staying, at least until the deal is finalized in 2023.)
Activision Blizzard’s reputation, however, has long been on the decline. No one doubts the financial appeal of the “Call of Duty” games — the brand owned the top two slots on 2021’s top-seller list, according to industry tracking firm the NPD Group. If you’re building a subscription service, it’s a powerful franchise to have in the stable.
Lots of questions come with a merger — potential layoffs chief among them, as well as long-term fears of a heavily consolidated game industry where the power sits only with Microsoft, Sony and Nintendo, leaving fewer opportunities for independents to negotiate or find publishers. But artistically, this is an instance where Activision Blizzard teams may benefit from a change of scenery.