A well-known name in the gaming community, Activision, may soon fall under the control of Microsoft as the latter looks to dominate the sector with its Xbox and PC offerings. Here are the implications of the record deal for the two businesses and the ideal gamer.

Microsoft has officially announced that it will pay $68.7 billion to acquire Activision Blizzard, making it the largest acquisition in the history of the video game industry. Knowing that the sale is valued around Rs 5,12,000 crore—or Rs five lakh twelve thousand crores in Indian currency—will help you comprehend the staggering sum.

Microsoft revealed the all-cash transaction today, and as a result, Xbox, a part of Microsoft’s gaming business, and Activision both announced plans to collaborate on upcoming titles. Microsoft notes that after the deal closes, it will rank as “the third-largest gaming company in the world by revenue.” It will fall just behind Tencent and Sony as a result.

For those who don’t know, the parent company of Activision, a US-based video game producer, is Activision Blizzard. Activision is behind renowned games including “Warcraft,” “Diablo,” “Overwatch,” “Call of Duty,” and “Candy Crush.” Activision is incredibly well-liked among the gaming community as a result of its games and frequent eSports events.

The corporation today employs over 10,000 people and has studios all over the world. Bobby Kotick will continue to lead Activision Blizzard after the acquisition. The business will carry on as usual, concentrating on driving business growth. Activision Blizzard’s operations will be reported to Phil Spencer, CEO of Microsoft Gaming.

Record-Breaking Deal: Microsoft To Acquire Activision Blizzard For Rs 5 Lakh Crore

According to Microsoft, the transaction is anticipated to be completed in 2023. Despite having received the blessing of the boards of directors of both Activision Blizzard and Microsoft, the transaction is still subject to customary closing requirements as well as “the conclusion of regulatory review and Activision Blizzard’s shareholder approval.”

Microsoft emphasizes that, with Activision Blizzard at its side, it intends to make a significant splash in the smartphone gaming market. Even the future porting of “The Halo” and “Warcraft” franchises to mobile devices is hinted at. For the purpose of acquiring the mobile gaming market, it draws on Activision’s prior success with titles like “Candy Crush” on mobile devices.

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Record-Breaking Deal: Microsoft To Acquire Activision Blizzard For Rs 5 Lakh Crore

With the acquisition, Microsoft also intends to increase the number of games available through its Xbox Game Pass and PC Game Pass services. According to Phil Spencer’s announcement on the Xbox website, the business would try to include “as many Activision Blizzard games” as it can in the two subscription services.

The well-known titles from Activision will hasten Microsoft’s plans for cloud gaming. It aims to encourage “more people in more places around the world to participate in the Xbox community” through the many platforms offered by the business, all of which will still be supported by Microsoft after the acquisition.

Conclusion

Microsoft’s purchase of Activision Blizzard for $68.7 billion is a huge deal, making Microsoft the third-largest gaming firm in the world in terms of sales. Microsoft hopes to improve its subscription services and cloud gaming initiatives, tap into the growing smartphone gaming market, and increase its market share by acquiring Activision.

Regulatory approval and the satisfaction of closing conditions are necessary for the deal to go through, but if successful, Microsoft will become even more dominant in the gaming business.

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