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After facing difficult situations for over a year, Microsoft finally owns Activision Blizzard. The $68.7 billion deal took a lot of effort for regulatory approval, but Xbox is now in a better position than before.
Thanks to the deal, Microsoft owns a large number of franchises, and many of these are blockbuster releases that bring in billions of dollars. After the merger, Xbox is home to over 15 franchises worth at least $1 billion.
Why it matters: Rivals like PlayStation and Nintendo have thrived through legacy IPs that have stayed relevant for many decades. With Xbox buying Activision Blizzard, it has many such franchises.
During the recent Q1 FY24 earnings call, CEO Satya Nadella pointed out that this deal has expanded the first-party portfolio of Xbox. He then referred to specific numbers and said:
“We will have 13 billion dollar-plus franchises – from Candy Crush, Diablo, and Halo, to Warcraft, Elder Scrolls, and Gears of War.”
However, previous documents revealed during the recent court case suggest that the number of franchises worth this amount is even higher. Adding the likes of Minecraft and Fallout, the number of franchises comes out to about 17.
Activision alone has brought around eight such franchises, with Call of Duty and Candy Crush being the two most important IPs. Diablo 4 has also reached lifetime sales of over 10 million, marking another major IP from the publisher.
The latest Xbox first-party release, Starfield, is expected to become another $1 billion franchise eventually. Having amassed over 11 million players already, the game is steadily moving toward this goal.
Moving forward, Microsoft will look toward creating more IPs that can reach this incredible milestone. Starfield is only the beginning for Xbox first-party titles, as the company is determined to deliver more releases like this.
We think Microsoft’s position in the gaming industry is more promising than ever. It appears to be on the right path, focusing on games and IPs to maintain this position.
Following the merger, the company hopes to double down on games. These $1 billion IPs will play a crucial role in this ambition, with Xbox already reporting promising revenue results last quarter.
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[News Reporter]
Obaid is pursuing a Law degree, while working as a content writer. He has worked as a gaming writer for over a year because of his passion for the medium and reporting the latest updates in the industry. Having played hundreds of games, Obaid finds himself coming back to Elden Ring and Red Dead Redemption 2, with these games being among his favorites. He has also been mentioned on highly regarded websites, such as Wccftech, Metro UK, PS Lifestyle, GamePressure, VGC, and Gamespot.
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