What is Xbox Likely to Do With Its $68 Billion Activision Blizzard King Purchase
Breaking down the most expensive Microsoft game purchase ever - with Kotick quotes.

You may have heard: Microsoft has announced plans to buy Activision Blizzard King and its development studios. The deal is worth $68.7 billion — or about 17 Star Wars purchases — and that kind of money wouldn't be spent without anticipating big moves (and revenue) in the future.

After my colleague Kyle Orland described everything we know so far about this deal, I wanted to take a deeper look at what these hybrid companies (and expected game releases) will look like in the future.

The best-selling console industry is still the holiday-themed version, and Activision has a long history of topping the holiday sales chart. But Microsoft has been optimistic about the growth of its Xbox brand, not because it sells consoles and Christmas tree gifts, but because more revenue can be made by signing up for fans each month and spending money on the Xbox brand, primarily through Xbox Game Pass. is being. In this business model, subscribers count, not first-person games or console sales, a fact the market has pointed out. Portfolio as he put it in a presentation in June 2021:

We put high-quality games in front of more people than other companies. Across the Xbox ecosystem, we now have access to hundreds of millions of people every month. Our market that can be fully processed is growing, while others are relatively stable. As the Xbox ecosystem grows in terms of content and overall size, it becomes more accessible to our players and partners. At the moment, we are the only platform games that are available on consoles, PC, and the cloud at the same time. He raised his fingers and repeated them at the end. In particular, he never mentioned Xbox Game Pass. Instead, she described the challenges of ABK in terms of growth potential. This might be the first time he's done this in a public forum. While calling investors, he was more inclined to move his fist when discussing Al Ahli Bank of Kuwait's quarterly growth. Advertising

Kotick described a huge business hub that ABK could make: The company could employ “thousands” in sectors such as the synthetic industries. Intelligence, data analytics, and the capabilities of 'cloud built'. That description may be deceptive - ABK's sales rescue the company from the worst PR crisis in recent years, no matter what Kotick says. On the other hand, the Kotick hub shows that ABK has, as always, seen graffiti, at least on the Megaton PC retail game console.

Probably why Kotick said that. Integrating with another multi-module game publisher isn't good for the future of Activision:

You think, oh, we're a big company and we just have these great resources. But when you compare us to $2 trillion companies and $3 trillion companies, you realize we might have been a big video game company, but now, when you look at the competitors' perspective. Today is a different world than ever before. I think [Take Two CEO] Strauss [Zelnik] handled things really well, because I think he realized he needed a cell phone [to buy Zynga]. But I think even if we merged into EA, it wouldn't give us what we need in the future.

As Kotick says, ABK saw the writing on the wall. Given his long-term growth potential, he had the option of building an entirely new business model or getting out of it while it was a good acquisition. Kotick noted that Microsoft's bid to buy Al Ahli Bank of Kuwait shares was 45 percent higher than its market value -- suggesting (but not confirming) that Microsoft had to bring a competitive bid to the table for some reason. On the contrary, Microsoft owns all the infrastructure that Kotik mentioned in his interview. Microsoft only needs Megaton exclusives (and if Spencer comes his way, there's at least one big game "every quarter"). How to design a comfortable and cozy desk for yourself?

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