In a landmark move that has redefined the landscape of the gaming industry, Microsoft Corporation completed its acquisition of Activision Blizzard on October 13, 2023. The $68.7 billion all-cash deal, initially announced on January 18, 2022, stands as the largest in Microsoft’s history and the most significant in the video game sector to date.
This strategic acquisition propels Microsoft to become the world’s third-largest gaming company by revenue, trailing only behind Tencent and Sony. By integrating Activision Blizzard’s extensive portfolio, Microsoft gains control over some of the most iconic franchises in gaming history, including Call of Duty, World of Warcraft, Diablo, Overwatch, and Candy Crush.
The path to finalizing the deal was fraught with regulatory scrutiny. The U.S. Federal Trade Commission (FTC) and the UK’s Competition and Markets Authority (CMA) both raised concerns about potential anti-competitive effects, particularly in the burgeoning cloud gaming market.
To address these concerns, Microsoft agreed to divest the cloud streaming rights for Activision Blizzard’s games to Ubisoft for a period of 15 years. This concession was pivotal in securing the CMA’s approval, effectively removing the final regulatory hurdle.
In the United States, the FTC’s attempt to block the merger was ultimately unsuccessful. A federal judge denied the FTC’s request for a preliminary injunction in July 2023, and the Ninth Circuit Court of Appeals upheld this decision in May 2025, leading the FTC to drop its case.
The acquisition significantly enhances Microsoft’s position in the gaming industry, particularly in the mobile gaming sector. With the inclusion of King, the developer behind Candy Crush, Microsoft now boasts a substantial presence in mobile gaming, an area where it previously had limited influence.
Moreover, the deal bolsters Microsoft’s Game Pass subscription service, which had over 25 million subscribers at the time of the announcement. By incorporating Activision Blizzard’s titles into Game Pass, Microsoft aims to attract a broader audience and increase subscriber engagement.
Activision Blizzard had been under intense scrutiny due to allegations of workplace misconduct and a toxic culture. In response, Microsoft has committed to fostering a more inclusive and respectful work environment. Bobby Kotick, CEO of Activision Blizzard, remained in his role until the end of 2023 to facilitate a smooth transition.
With the acquisition complete, Microsoft is poised to leverage its expanded portfolio to innovate across various gaming platforms, including console, PC, mobile, and cloud gaming. The company has expressed intentions to release new first-party titles regularly, aiming to deliver a new game every quarter.
As the gaming industry continues to evolve, Microsoft’s strategic acquisition of Activision Blizzard positions it at the forefront of innovation and competition, shaping the future of interactive entertainment.
