Microsoft now has 68.9 billion reasons to celebrate. After winning against FTC, Microsoft cleared its last regulatory hurdle in the UK too. The Competition and Markets Authority (CMA) ruled in favor of the $68.9 billion acquisition deal between Microsoft Xbox and Activision Blizzard. Now it’s only a matter of time before the two industry heavyweights merge together.

The inclusion of Activision-Blizzard-King in the Microsoft family will be a huge breakthrough for the console makers. The ownership of titles like Call of Duty, Candy Crush, and Diablo will give an edge to Xbox over its competition, namely PlayStation and Nintendo. Although the console makers will be celebrating currently, they will definitely be charting the next steps for themselves.

Is Microsoft looking at other acquisitions after Activision?

The deal between Microsoft and Activision is all but complete. But with the major hurdle out of the way, they can now look forward. Xbox could be looking to expand further. And it was evidently revealed during the court proceedings of FTC vs. Microsoft that they have the funds to do so. However, what’s next for the console makers is hard to pinpoint. But looking at a recent interview with Phil Spencer might shed some light on the matter.

Spencer has confirmed Xbox is looking to expand its domain in Asia now, which is said to be the home ground of Nintendo. Spencer confirmed he would like to acquire Japan-based studios in Tokyo Game Show 2023 while also showing openness to other means of expansion. And it is no secret Microsoft was looking to acquire Nintendo before they settled on Activision Blizzard.

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The acquisition of Nintendo will be a tough job for Xbox looking at the $68.9 billion deal with Activision. However, they could set their eyes on other big names from Japan like Sega, Bandai Namco, FromSoftware, and Square Enix. Further, a collaboration between Xbox and Nintendo, though a long shot, might become a possibility if they need to challenge PlayStation. The leaked documents from the FTC vs. Microsoft case also pointed out the Xbox higher-ups were in talks with the Nintendo executives.

Although Microsoft is looking to acquire more studios, possibly in Japan, it has a tough road ahead. Japanese studios like Capcom have openly declined any acquisition talks with Xbox. Capcom CEO Haruhiro Tsujimoto said to Bloomberg, “I believe it would be better if we were equal partners.”

Expanding their library

While future acquisitions might be in the think tank of Microsoft, they currently have a lot on their plate. An acquisition of Activision means catering to over 400 million (according to Activision CEO Bobby Kotick) more players for Xbox. Furthermore, looking at the current wave of layoffs, there is a high possibility the console makers would do some cost-cutting.

This cost-cutting will probably affect the Activision-Blizzard-King service and support division first, as Xbox has one of its own. They might also completely retain this division, as Activision runs completely on service games, like Call of Duty. Titles like these were one of the key reasons for this acquisition.

Another reason Microsoft acquired Activision was to strengthen its hold on the mobile industry. The mobile industry is the biggest sector in the gaming world, leaving console and PC gaming far behind. Using the help of King’s smartphone game development division, Xbox would possibly bring its popular first-party titles to mobile. And with titles like Minecraft, Diablo Immortal, Warcraft Rumble, and Call of Duty Mobile under their belt, they surely are on the path to becoming mobile game industry giants too.

Will this merger be the saving grace for Xbox in the gaming industry?

Following the merger, another debate has started to take place. In the past, Xbox CEO Phil Spencer claimed by 2027, the console-users numbers have to be much higher for Microsoft to even compete in the gaming industry by 2030. He went on to state if the numbers are not up to the mark in 2027, the console makers have some re-evaluations to do. But looking at the acquisition of the biggest service game creators Activision-Blizzard is now complete, Spencer would be taking a sigh of relief.

This acquisition will be profitable for both gamers and the console makers. Gamers would have ease of access by finding titles like Diablo 4 and Call of Duty on Xbox Game Pass. And Xbox can increase the price of Game Pass, as they had planned in the past.

While finalizing the deal is cause for celebration for Phil Spencer, the $68.9 billion acquisition also means the work is just beginning for Xbox. They would have to try to seamlessly merge their operations with Activision while also going head-to-head with other gaming giants.

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