Microsoft to buy Call of Duty maker for $68.7 billion
January 18, 2022
In the biggest deal in the sector, the US tech giant said it will acquire videogame maker Activision Blizzard — which has been hit by allegations of misconduct and discrimination.
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Microsoft Corp. announced on Tuesday plans to buy the videogame giant Activision Blizzard for $95 (€84) per share.
The all-cash deal, valued at $68.7 billion, is thought to be the biggest ever in the gaming sector after Dell bought data-storage company EMC in 2016 for around $60 billion.
The merging will make Microsoft the third-largest gaming company by revenue, behind Tencent and Sony, Microsoft said.
Betting on the metaverse
Tuesday's announcement represents Microsoft's bet on the so-called metaverse, virtual online worlds where people can work, play and socialize.
"Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms," Microsoft CEO Satya Nadella said in a statement.
"This is a significant deal for the consumer side of the business and more importantly, Microsoft acquiring Activision really starts the metaverse arms race," analyst David Wagner told Reuters news agency.
From Atari to Xbox Series X: The evolution of video game consoles
Massive or playful, original, and sometimes elegant: Every new video game console generation has a fresh design. Sometimes they reflect the zeitgeist, others are revolutionary.
Image: Microsoft
Xbox Series X (2020)
Microsoft remained true to the established console design tradition for its Xbox Series X. Many social media critics felt it looked uninspired, and the console was ridiculed for resembling a computer tower or even a mini-fridge, which is why it earned the nickname "Xbox Fridge."
Image: Microsoft
PlayStation 5 (2020)
With its playful curves, the PS5 looks futuristic. It also breaks with the PlayStation tradition, as it is for the first time in two colors. The reactions on social media are divided: For some, the design is a revelation, for others, the look is reminiscent of a wireless router. The following pictures in this gallery take a look back at how games consoles have developed since the late 1970s
Image: Reuters/Sony Interactive Entertainment Inc.
Atari Video Computer System (1977)
The Atari VCS, also known as Atari 2600, was the first console bestseller. With games like Q*bert, Pacman and Space Invaders, the console delighted millions of gamers worldwide. The design was based on the wood veneer look popular with the era's TV sets.
Image: picture-allince/Zuma Wire/D. Klamka
Nintendo Entertainment System (1983)
The Nintendo Entertainment System (NES) was launched in Japan as a family computer under the name Famicom. The unremarkable grey box still has fans to this day. Manufacturer Nintendo laid the foundation for famous game series like Super Mario Bros. and Zelda. The controller was the first to introduce the control pad, which became standard for all manufacturers.
Image: picture alliance/R. Goldmann
Super Nintendo Entertainment System (1990)
In 1990, the Super Nintendo Entertainment System (SNES) was released in Japan under the name Super Famicom, followed by the US in 1991 and Europe a year later. With its rounded corners and large buttons, the drab grey console was a robust toy for children that easily survived a tumble from a shelf without damage.
Image: picture-alliance/dpa/C. Seidel
Playstation (1994)
Sony's success story on the console market began with the Playstation. The sleek device was inspired by the SNES. Originally, Sony was supposed to develop a CD drive for the SNES, but Nintendo decided to go with another company. Sony built its own console and became a major competitor.
Image: picture-allince/Zuma Wire/D. Klamka
Nintendo GameCube (2001)
The name says it all. The standard edition was a purple cube, the shape a reference to an object that is an inherent part of many games, the dice. The color purple was intentional, as Nintendo mainly produced video games suitable for children, selling them exclusively for Nintendo consoles.
Image: picture-alliance/dpa/AFP/Y. Tsuno
Xbox (2002)
The Xbox was the first console created by Microsoft. The company was keen to establish the Xbox brand as quickly as possible, which might explain the decision to cover the console with a large letter "X." Size mattered: The Xbox was slightly bigger and blockier than other consoles.
Image: picture-alliance/dpa/J. Gurzinski
Xbox 360 (2005)
The Xbox 360 is an example of poor design. It is not necessarily ugly, but the ventilation didn't work well. When the console overheated, the LEDs surrounding the power button turned red. Often enough, that meant the console needed to be taken to a repairshop. The infamous "Ring of Death" went down in gaming history.
Image: Imago/Zuma/M. Day Mass
Wii (2006)
Nintendo's Wii was a slim, white console with a slant. At the time, the color white was the hottest color for cool, technical devices. The iPod, which had been around for several years, was also white. Controllers with motion sensors and a wrist strap were innovative features that gave people a new gaming experience.
Image: picture alliance/ImageBROKER/NielsDK
Playstation 4 (2013)
The Playstation 4 came along with a simple-looking, reserved design, but it wasn't without appeal. The glossy piano varnish surface gave it an elegant touch. Buttons, connections and drive were cleverly concealed. This console was no longer a child's toy.
Image: picture-allince/dpa/A. Warnecke
Nintendo Switch (2017)
While Sony and Microsoft continued to develop their tried and tested models, Nintendo turned to something new: enter the Switch. The device was a hybrid, half handheld, half stationary console — basically a display with connected controllers.
Last year, Activision disclosed that it was being investigated by US authorities over complaints of workplace discrimination. It also faces a lawsuit alleging it enabled toxic workplace conditions and sexual harassment.
The company has received around 700 reports of employee concerns over sexual assault, harassment or other misconduct, according to the Wall Street Journal.
In a conference call with investors on Tuesday, Microsoft CEO Nadella said that "the culture of our organization is my number one priority'' and that "it's critical for Activision Blizzard to drive forward on its'' commitments to improve its workplace culture. "The success of this acquisition will depend on it."
Activision CEO Bobby Kotick is set to continue his role after the deal. Nearly 20% of Activision's 9,500 employees had signed a petition calling for Kotick to resign, according to media reports.
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