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What does the Microsoft deal to buy Activision mean for gamers?

Microsoft’s multibillion-dollar deal to buy video game maker Activision Blizzard has been cleared by the UK’s competition regulator.

It cleared the way for the Xbox owner to complete one of the biggest takeovers ever in the tech sector.

But what does it mean for gamers now that the maker of Call Of Duty will be owned by the firm behind the Xbox games console?

A gamer playing Call Of Duty

Call Of Duty was developed by Activison (PA)

– What are the details?

Microsoft has paid just under 69 billion dollars (£56 billion) to take over Activision Blizzard, the video games developer behind franchises such as Call Of Duty, World Of Warcraft, Overwatch and mobile giant Candy Crush, among others.

Following the Xbox owner’s acquisition of another large gaming studio, Bethesda, in 2020, Microsoft says it will help boost its Game Pass platform – the company’s Netflix-style gaming subscription service – and better compete with Sony and Nintendo in the gaming market.

– Why has the deal been delayed until now?

Industry rival Sony raised concerns that Microsoft could stop some big games from being available on the PlayStation.

Call Of Duty is one of the biggest entertainment franchises in the world, making millions of dollars for console makers with each new instalment every year.

Regulators in the US, UK and EU also expressed fears over the impact the deal would have on competition in the gaming market, and whether it would mean Microsoft could make it more expensive and more difficult to play some games on non-Xbox

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Microsoft spent two years trying to buy Activision Blizzard. For Xbox CEO, that was the easy part

After two years co-piloting the biggest acquisition in video game history past an onslaught of challenges, Xbox CEO Phil Spencer now moves on to his next quest: making Microsoft’s takeover of Activision Blizzard worth the hassle.

Microsoft, which owns the Xbox gaming system, closed its $69 billion deal to buy game-maker Activision Blizzard on Friday after fending off global opposition from antitrust regulators and rivals.

It marks a career-defining moment for Spencer, who first joined Microsoft as an intern in 1988 and has helmed Xbox since 2014. After years of lagging behind rival Sony’s PlayStation, acquiring Activision’s collection of popular game titles gives Microsoft a rare chance to catch up.

“His job really just starts today,” said analyst Gil Luria, technology strategist at D.A. Davidson, after the deal’s closure. “All he’s been doing is preparing for today where he actually gets to integrate the business.”

And it marks the end of an era for Activision Blizzard CEO Bobby Kotick, who’s led the Southern California maker of Call of Duty and other blockbuster franchises since 1991 after helping to buy it from bankruptcy. Kotick said he’s assisting with the transition until the end of the year.

Activision Blizzard was still reeling from worker protests, lawsuits and government investigations over allegations of workplace harassment against women and unequal pay when Microsoft privately reached out about buying the company in 2021.

When the companies announced a planned merger in January 2022, Microsoft CEO Satya Nadella made clear it would be “critical for Activision Blizzard to drive forward” on its commitments to improve its workplace culture.

That was just the start of Microsoft’s challenges in bringing home the deal. After negotiations with Spencer faltered, top rival Sony brought its concerns about losing access to the Call of Duty franchise to regulators around the world.

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