Microsoft to Purchase Blizzard
On Jan. 18, Microsoft’s gaming CEO, Phil Spencer, announced plans to acquire video game giant Activision Blizzard amid company controversy, shaking up the gaming industry in an unpredictable start to the new year.
With a recent push for Activision CEO, Bobby Kotick, to resign over mounting sexism and harassment lawsuits, a swift change in leadership wasn’t entirely unexpected for the company. Microsoft’s history of lofty purchases, too, has made their announcement to absorb Blizzard less of a surprise, despite the odd timing.
“This morning, we announced that we will acquire Activision Blizzard in an all-cash transaction valued at $68.7 billion,” Chairman and CEO at Microsoft Satya Nadella said in an investor call with Activision Blizzard. “This will be the largest acquisition in our history, and we’re investing to create a thriving gaming ecosystem, one where world-class content can more easily reach every gamer across every platform.”
However, many question why Microsoft would choose to partner with Activision while they are under scrutiny. It is currently unknown what methods Microsoft will use to address the claims of harassment and sexism in the workplace towards women, but they are emphatic in their plans to increase inclusion and respect towards employees.
“As a company, Microsoft is committed to our journey for inclusion in every aspect of gaming, among both employees and players,” Spencer said in an Xbox Wire blog post. “We deeply value individual studio cultures. We also believe that creative success and autonomy go hand-in-hand with treating every person with dignity and respect. ”
The news has called into question how the gaming industry will be impacted by the purchase, as well as how Microsoft plans to follow through on its promises of improved workplace conduct. It’s likely this change won’t cause much of a shift in the video game world, short of having to use the Microsoft Game Store more, but the concerns regarding employee harassment are still left unanswered.
“Microsoft will need to overcome its own culture issues,” News Organization Reuters said in an article on the purchase. “The company’s board of directors in January said it hired a law firm to conduct a review of its sexual harassment and gender discrimination policies after shareholders supported a proposal in November calling on Microsoft to review the effectiveness of its policies.”
Beyond the potential issues that may come with the acquisition, Microsoft’s proposal is still very much up in the air. Many financial analysts have expressed doubts about the validity of the purchase, considering the enormity of the transaction itself and the potential for antitrust organizations to intervene.
“It’s not a done deal, and Activision Blizzard comes with a lot of baggage that could complicate the regulatory approval process,” Writer Andy Chalk said in an article for PC Gamer. “But if it does go through—and the general consensus is that it will—then it could shake up the video game industry in ways unlike we’ve ever seen before.”
On the whole, responses to Microsoft’s announcements have been mixed, some criticizing Microsoft’s monopoly-like growth and some expressing skepticism of the deal itself. However, the potential for reform in Blizzard’s workplace under new leadership is promising, and the change may very well benefit the average consumer.
“Around the world, there is no more exciting venue for fun and connection than video games,” Spencer said at the end of his blog post. “As we extend the joy and community of gaming to everyone, we look forward to welcoming all of our friends at Activision Blizzard to Microsoft Gaming.”