In 2023, Microsoft’s huge purchase of Activision Blizzard sparked a massive legal battle and backlash across the gaming medium. Years later, critics are still highly skeptical about whether this acquisition was right. Some of their biggest skeptics were financial analysts who questioned the viability of this move. One onlooker highlighted the poor sales from the purchase, so Microsoft’s spokespersons responded, claiming it was profitable. However, there is no denying that the acquisition of Activision Blizzard will have far-reaching repercussions for the entire industry.

Microsoft Misjudges Activision Blizzard

According to Insider Gaming, Microsoft spokespersons responded to claims of “disappointing” earnings from the journal The Independent. Danny Fish’s original article claimed that Microsoft’s profit from the Activision Blizzard purchase was lower than anticipated, adding to the mounting criticism towards’ the massive purchase. However, representatives from both companies stepped forward to correct the report as lacking “context.”

According to them, Microsoft’s last four earnings reports demonstrated that Xbox sales and services have increased. Furthermore, they attributed this growth to their purchase of Activision Blizzard. This is hardly a bold claim because Activision is currently one of the most lucrative gaming companies with franchises such as Call of Duty, and the Xbox Game Pass was an especially strong source of revenue. Microsoft’s CEO Satya Nadella has already told of these advancements.

Microsoft’s Mismanagement

Whether or not the Activision Blizzard purchase was profitable, it attracted many critics from fans, analysts, and casual gamers alike. Many have attacked the purchase as moving the gaming industry closer toward a handful of massive corporations rather than a collection of developers creating their visions. Of course, between professional business analysts and Microsoft’s internal spokespeople, it can be hard to tell whose view is closer to reality.

As one might expect, this massive purchase was followed by several layoffs for numerous companies, a trend that ravaged the video game industry for nearly two years straight. Of course, these were especially bad under Microsoft’s corporate restructuring. The two biggest casualties were the studio Tango Gameworks, famous for the bombastic action game Hi-Fi Rush, and Redfall’s Arkane Austin. It’s important to look past short-term profits and analyze how this model will play out over the next few years.

A Monumental Purchase

Of the many controversies in the gaming industry, few have attracted the same ire as Microsoft’s purchase of Activision Blizzard. Years earlier, the once respected developer was embroiled in lawsuits and litigation stemming from its management’s abusive executives. Soon after, Microsoft swooped in to purchase it for $70 billion. Naturally, this led to Microsoft’s being swept up in a massive legal battle with the FTC, which accused it of violating various anti-monopoly laws. In the end, Microsoft emerged victorious.

Despite Microsoft’s claims of increased profits, many of their employees tell another story. In response to thousands of employees being laid off last year, many more of their developers went on strike to protest this choice. This is hardly surprising given the waves of damage done by poor management and a lack of job security.

Beyond its ownership of these gaming giants, Microsoft is one of the most powerful tech companies on the planet. While this purchase is far from the company’s only controversial action over its history, it still holds massive sway over game development, consoles, internet access, and essential software. Its AI assistant, Cortana, even comes from the iconic Halo series. Overall, their choices have and will determine the fate of the whole industry.

Microsoft’s Troubling Signs

Microsoft’s purchase of Activision Blizzard was a landmark event in gaming history, resulting in massive legal battles, layoffs, and studio closures. While their executives claimed this consolidation of power increased their revenue, there are other ways to tell the acquisition’s effects on the industry. Ultimately, video games should not be treated as a source of revenue for their executives or parent companies. They should be seen as an art form to be enjoyed by gamers, and their creators should be respected.