We're in a veritable golden age of video game movie adaptations, and Activision's $30 billion "Call of Duty" franchise looks to be the next big name in line for the big-screen treatment. A "Call of Duty" movie is now officially in the works, Paramount Skydance and Activision announced Tuesday (September 2). It’s exactly the kind of project you’d expect from the studio behind "Top Gun: Maverick" and the wildly successful "Sonic the Hedgehog" trilogy.

As part of the deal, Paramount will develop, produce, and distribute a live-action feature film based on the “Call of Duty” universe, which spans more than 30 mainline games released since 2003. Activision is on board as a creative partner for the film. Both companies said they remain committed to honoring the brand's "rich narrative and distinctive style" for fans.

"We’re approaching this film with the same disciplined, uncompromising commitment to excellence that guided our work on 'Top Gun: Maverick,' ensuring it meets the exceptionally high standards this franchise and its fans deserve," said Paramount chairman and CEO David Ellison in a press release.

The news comes just a few days after Ellison, apparently an avid gamer himself, called Call of Duty the next video game series in Paramount's crosshairs following the success of the "Sonic the Hedgehog" films.

“As a lifelong fan of Call of Duty, this is truly a dream come true,” Ellison said in Tuesday's press release. "From the first Allied campaigns in the original Call of Duty, through Modern Warfare and Black Ops, I’ve spent countless hours playing this franchise that I absolutely love. Being entrusted by Activision and players worldwide to bring this extraordinary storytelling universe to the big screen is both an honor and a responsibility that we don’t take lightly."

Activision President Rob Kostich called Paramount a "fantastic partner" to bring "Call of Duty" to the silver screen. "Our shared goal is quite simple — to create an unforgettable blockbuster movie experience that our community loves, and one that also excites and inspires new fans of the franchise," he added.

The valuation of the new deal between Paramount Skydance and Activision has not been disclosed, but it's likely to be a pretty penny. In 2023, Microsoft acquired Activision, which publishes "Call of Duty" along with other popular gaming franchises like "Warcraft," "Diablo," and "Candy Crush," in a deal worth $69 billion.

What we know about the 'Call of Duty' movie

Though Paramount and Activision confirmed a "Call of Duty" movie is officially in the works, they didn't reveal much in the way of what to expect. It's unclear what games or storylines will be adapted, though given that the "Modern Warfare" and "Black Ops" sub-franchises are among the most popular in the series, those seem to be the most likely candidates.

As of yet, there's no timeline for when the film will hit theaters. Before we get a release date, Paramount will have to pin down a writer, story direction, script and talent, all processes that are likely to take quite some time. With that in mind, the "Call of Duty" movie is likely several years away from arriving in theaters.

Something exciting to note is that it could be the jumping-off point for a "Call of Duty" cinematic universe. According to Variety, sources with inside knowledge of the Paramount–Activision deal claim it leaves room for the "Call of Duty" universe to branch out into both additional films and television. Though obviously, future projects will hinge on how the movie performs.

Given how popular "Call of Duty" is, the adaptation is already starting on solid footing. If done right, the film has the potential to resonate with audiences on a huge scale and become another global phenomenon like we saw with "A Minecraft Movie" and "The Super Mario Bros. Movie." Though it could also go the way of "Borderlands" or "Until Dawn" as a throwback to the painfully awful video game adaptations of decades past.

How Paramount develops the "Call of Duty" movie in the months and years ahead remains to be seen, but it's clear the studio has a prime opportunity before it to draw a massive audience.

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Activision revealed the next Call of Duty during the Xbox Games Showcase this weekend. And for COD fans, Call of Duty: Black Ops 6 looks to be an exciting step in the series' long history — at least for those who have an always-on internet connection.

Spotted by Kotaku, Activision put up an FAQ page for the game that includes a small section to answer whether you need an internet connection to play Call of Duty: Black Ops 6. Activision's self-reported answer to the question confirms that player will need a continuous internet connection for every game mode, including the single-player campaign.

"To deliver the highest-quality visuals while also reducing the game’s overall storage space on your hard drive, Call of Duty: Black Ops 6 will use texture streaming across all game modes," the FAQ reads. "This means you’ll need a continuous internet connection to play any game mode, including Campaign. If you’re on a console, Campaign can be played without a premium subscription service such as Game Pass Core or PlayStation Plus."

In general, always-on internet requirements haven't really filtered down to console players the way they have impacted PC gamers. 

We're curious what space Activision and developers Raven Software and Treyarch think they're actually saving with "texture streaming."Our friends at sister site PC  Gamer says that "texture streaming" is related to games "streaming high-res textures into memory from your SSD." This might mean that Activision is offloading some of that work to the cloud. 

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Xbox President Sarah Bond is setting up a dedicated team to preserve Xbox digital libraries in future Xbox hardware, as learned in emails obtained by Windows Central. Microsoft confirmed that the emails were genuine and would comment more at a later date.

Bond was promoted to Xbox president last October in a massive reorganization of Microsoft and Xbox. It saw several new faces in positions of power, like Matt Booty, the new Xbox Game Content and Studios president and overseer of ZeniMax Media.

Bond oversees, among other avenues, the hardware and business strategies of the Xbox brand.

In the emails, Bond revealed that Xbox has built a dedicated team to future-proof the current Xbox library to ensure that the games people buy remain accessible. "We have formed a new team dedicated to game preservation, important to all of us at Xbox and the industry itself. We are building on our strong history of delivering backwards compatibility to our players, and we remain committed to bringing forward the amazing library of Xbox games for future generations of players to enjoy."

According to the report, Microsoft might share more about this team and its work during the Xbox Showcase, which is expected to occur on June 9th, 2024. 

With the licensing of games and the ongoing memory-holing of gaming history, more people have become concerned about game preservation and accessibility. It will be interesting to see how Xbox tackles this issue. 

Gaming AI, Next-Gen Hardware, Activision-Blizzard Integration

In the emails sent to Xbox employees, Bond touched on several topics, including work on next-generation hardware, which is “focused on delivering the biggest technological leap ever in a generation.”

Other than this, Microsoft and Xbox haven’t said much about plans for the next generation of gaming consoles or whatever form that takes. The Xbox Series X|S and PlayStation 5 aren’t even four years old yet, but the rumor mill about the next-gen has already been running hot.

Microsoft has not been shy about adding AI elements to future Xbox products. Bond reiterated this focus: “We are innovating in Gaming AI, focused on delivering player-first, developer-first value for discovery, engagement, and creator velocity.” 

It remains to be seen how those buzzwords will manifest in games and hardware moving forward. 

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Nearly two years after Microsoft announced it would buy Activision Blizzard for $68.7 billion, the Redmond-based tech giant has finally sealed the deal. I’ll spare you the details regarding Microsoft’s battles with US and UK regulators, but suffice it to say that the biggest acquisition in video game history is now behind us.

With titles like Overwatch 2, World of Warcraft and of course Call of Duty under its belt, the Xbox brand is now stronger than ever. This is great news considering how Microsoft’s gaming division has long been in third place behind PlayStation and Nintendo in the never-ending console wars. Sony, who fought hard to stop this deal from happening, is no doubt sweating.

Like it or not, Xbox Game Pass and Xbox as a whole will become more enticing than ever — and that’s good for all gamers. I’ll explain why.

Xbox Game Pass levels up 

You’ve heard it a million times, but it’s true — Xbox Game Pass is one of the best deals in gaming. For $15 a month, the subscription service’s Ultimate tier gives you access to hundreds of first-party and third-party games. On top of that, it also has the best cloud gaming streaming service that allows you to play Xbox games on mobile devices. Even Sony’s revised PlayStation Plus service can’t compare.

Being able to play blockbuster first-party games at launch on Game Pass is awesome, but those titles are few and far between. Yes, Starfield exists, but what was the last major release before that? Forza Horizon 5? Halo Infinite? Redfall absolutely doesn’t count, nor do smaller outings like Hi-Fi Rush and The Medium.

When it comes to huge marque games at launch, Xbox Game Pass has been severely lacking. It's the main reason I unsubscribed from the service a year ago. Now that Microsoft owns Activision Blizzard, we should start seeing real blockbusters on the service.

While Call of Duty games are coming to PlayStation for at least the next ten years, these titles will likely be available on Game Pass at launch — meaning subscribers will effectively get Call of Duty for “free” while PlayStation owners will have to fork over $60 to $70. That could be enough incentive for Call of Duty’s massive PlayStation fanbase to switch over to Xbox. The same also applies to fans of Overwatch and other Activision Blizzard franchises. Why buy a game at full price when you can play it (and hundreds of other titles) for $15 a month?

With games from Activision Blizzard, Bethesda and more, Xbox Game Pass will finally live up to its potential.

A true competitor to PlayStation 

The Sony PlayStation has been a dominant force in gaming since its release in 1994. With the exception of the PS3/Xbox 360 era where it lost ground to Microsoft in the West, Sony’s console has always overshadowed the Xbox. The key reason is the latter’s lack of compelling first-party games. While Xbox has Halo, Gears of War and Forza, PlayStation has God of War, Uncharted, Spider-Man, The Last of Us, Horizon and Ratchet & Clank just to name a few.

I can’t say acquiring Activision Blizzard’s games instantly puts Xbox Series X on par with PS5 in terms of exclusives — but it certainly doesn’t hurt. Call of Duty alone outsells many of those aforementioned PlayStation games combined. And aside from Spider-Man and perhaps The Last of Us, Call of Duty also has greater name recognition than Sony’s titles. And as I said above, Call of Duty will no doubt bring over many PlayStation owners to Xbox. Want proof? Recall the mass exodus of Call of Duty players who switched from PS3 to Xbox 360 during the infamous PlayStation Network hack in 2011. A similar migration will certainly happen again to some degree.

While Sony has been sitting pretty with its successful PS5, I feel the company has become complacent of late — relying on re-releases and remakes for most of this generation. A smug PlayStation led to the disastrous PS3 launch, which is something we don’t want to see again. Hopefully, Microsoft’s Activision Blizzard buyout will light a fire under Sony’s feet. To quote Kratos from God of War, we need PlayStation to “be better.”

Updating & reviving Activision Blizzard franchises 

This one may or may not happen, but now that Microsoft owns Activision Blizzard’s IPs, the company has a chance to revive or update some forgotten franchises.

If Microsoft wants to challenge PlayStation’s Spider-Man, it can do so with Prototype — which is also a superhero franchise set in New York City. Similarly, the open-world True Crime series can keep players happy until Grand Theft Auto 6 drops, while the arcade racer Blur can fill the void left by the missing Burnout franchise. And if Microsoft wants, it can try its hand at resurrecting Guitar Hero. Let’s not forget Starcraft and a return to classic Warcraft, which I’m sure RTS players would appreciate.

I could go on, but suffice it to say Microsoft isn’t just getting Call of Duty and World of Warcraft from this deal. If the company wants to bolster Game Pass with titles people have long been waiting for, it should start doing so immediately.

A brighter future for Xbox

While I would've preferred if Microsoft focused more on creating its own new IPs instead of obtaining them by gobbling up publishers, it’s good knowing that Xbox and Xbox Game Pass now have a larger game library. This will not only benefit Xbox fans but also spur PlayStation to do its best to keep players on its platform. Competition drives innovation, and we could see gaming as a whole become exciting again.

It will be some time before we see the full effects of the Activision Blizzard buyout, but I’m excited about the possibilities. Even if PlayStation remains king, having a strong Xbox vying for its throne should keep Sony on alert. If that’s the case, then we’ll all win in the end.

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Diablo IV Season 1 is slowly winding down, and with Season 2 not set to arrive until mid-October, fans may be wondering what Blizzard has planned for its best-selling dungeon-crawling action RPG in the meantime. This week Blizzard announced a new patch that should make it easier for players to grind to level 100 before the next season. 

Update 1.1.4 rolls out on September 12 with several incremental updates, bug fixes and other tweaks. Most importantly, it adds an XP buff for the Urn of Aggression Season Blessing, increasing the amount of experience earned from killing monsters from 8% to 20%. Blizzard laid it all out in the update's patch notes this week, explaining that this increase in XP earned should help players reach level 100 a bit faster before Season 2 starts on October 17.

"We increased the total experience bonus of Urn of Aggression to make the Season Blessing more impactful and to help players seeking Level 100 get there a little faster," reads a developer's note included with the patch notes. 

Season Blessings are a new Diablo IV mechanic introduced in Season 1 that awards players with bonuses for completing certain objectives. These boosts range from the extremely useful (like the Urn of Bargaining, which increases how much gold you receive from selling items) to the mostly useless (like the Urn of Reclamation, which boosts your chances of finding rare salvage). Easily one of the most handy Blessings is the Urn of Aggression as it bumps up how much experience you earn from killing monsters, making the grind to max out your character's level a bit less tedious. 

This latest update also fixes a few issues with some of Diablo 4’s side quests and the game's screen reader. Read on for the full list of bug fixes below. 

Accessibility

• Fixed an issue where the screen reader didn’t read enemy names.

Quests and events

• Fixed an issue where the Lorath's Polearm and Strange Amulet items from the Missing Pieces quest couldn’t be picked up after dropping them and re-entering town while mounted.
• Fixed an issue where progression for the Remembering the Goose quest could be blocked if the player teleported using the Town Portal or exited the game immediately after placing Tavish's dagger.
• Fixed an issue where the Retching Mass event did not reward Gold upon completion.
• Fixed an issue where progression for the Poisoned Hearts quest could be blocked if the player left the area in the middle of Aneta's dialogue with Vera.

Miscellaneous

• Fixed an issue where a dialogue option for Kres couldn’t display properly.
• Fixed an issue where the Season Journey's completion percentage in the Season menu would display the progression percentage of the last viewed Chapter instead of the active Chapter.
• Fixed an issue where the notification stating your Inventory is full could appear unexpectedly.
• Fixed an issue where credit would not be received for completing a Malignant Tunnels Season's Journey objective if the heart at the end was not captured.
• Fixed an issue where the voice over lines did not play for the following taunt Emotes: I Will End You / You Will Die! / I will Rip Your Soul Apart / Die! /Prepare for Oblivion
• Various visual, performance, and stability fixes.

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Update: Call of Duty: Modern Warfare 2 (2009) is now back on Steam following the release of a patch to address the issues described below. The original story follows:

Activision has taken an old, yet still quite popular Call of Duty game offline following a malware attack orchestrated by hackers on Steam. 

Despite the fact that a remake of Call of Duty: Modern Warfare 2 was released last year, the original game from 2009 is available to play on Steam and draws in hundreds of players each day. It’s also a lot cheaper at $20 vs $70 which could be why it remains quite popular even though the game is more than a decade old.

However, as reported by TechCrunch, a Steam user took to the service’s forums yesterday (July 26) to alert other Call of Duty players that attackers were “using hacked lobbies” to spread malware. While the malware in question doesn’t have a name, it is listed on VirusTotal which is an online malware repository.

In the forum post, another Call of Duty player explained that they had analyzed the malware and it appears to be a worm based on a series of text strings contained within it. TechCrunch also spoke with an anonymous game industry insider who confirmed that the Steam user’s analysis was accurate.

Self-spreading malware

Unlike other malware that’s spread through phishing attacks or malicious apps, this malware strain is a worm that’s spread through the online lobbies for Call of Duty Modern Warfare 2’s multiplayer component.

Just like a real virus, it can automatically jump from one infected player to another. This likely indicates that the hackers behind this campaign have found one or even several vulnerabilities in the game that they’re exploiting to execute malicious code on the computers of other Call of Duty players.

This is why the official Call of Duty Updates account has announced on Twitter that Multiplayer for Call of Duty: Modern Warfare 2 (2009) has been taken offline while an investigation into the issue is being conducted. 

While we’ll have to wait and see what happens, the most likely outcome will be that Activision releases a patch which addresses the issues hackers have been exploiting to spread malware before the game’s multiplayer lobbies are brought back online.

How to stay safe when gaming online

In order to protect yourself from malware and other viruses when gaming online, you’re going to want to take the same steps you do when checking your inbox. This means not opening links or attachments from unknown senders and always being careful not to reveal your personal information when in multiplayer lobbies.

At the same time, you’re going to want to stick to official PC game stores like Steam or the Epic Games Store instead of trying to download games illegally. Pirating games not only hurts their developers but also puts you at risk as cracked games often contain malware or other viruses.

Likewise, you should also have one of the best antivirus software solutions installed on your gaming PC to protect you from malware. If you’re on a tight budget though, Microsoft’s own Windows Defender can certainly do the trick though you often get useful extras like a password manager, VPN and even cloud storage with paid antivirus software. For complete online protection though, you should check out the best internet security suites.

Now that gaming is more popular than ever, hackers will likely continue to target gamers in their attacks. However, by being careful online and securing your gaming PC with a good antivirus, you can avoid falling victim to these kinds of attacks.

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And just like that, the drama seemed to evaporate. While Microsoft’s acquisition of Activision still isn’t a completely done deal, the decision by Judge Jacqueline Scott Corley to side with Microsoft and not the FTC means that the odds now feel stacked in the Xbox maker’s favor (pending a possible appeal, of course).

There are still outstanding issues to be resolved with the U.K.’s Competitions and Markets Authority. But assuming things progress smoothly from hereon in, Microsoft will likely be the new home of iconic franchises ranging from Call of Duty and Crash Bandicoot to World of Warcraft and Candy Crush Saga. 

So what does and could that mean for gamers? We’ve outlined some of the burning questions you might have below.

Will Call of Duty come to Xbox Game Pass?

That’s very much the plan. “We intend to make Activision Blizzard’s much-loved library of games – including Overwatch, Diablo and Call of Duty – available in Game Pass and to grow those gaming communities,” CEO of Microsoft Gaming, Phil Spencer, wrote last September.

In the case of Call of Duty, that’s a whole lot of content. Not only are Black Ops Cold War, Vanguard and Modern Warfare II built for Xbox Series X and Series S consoles, but the following titles are also available via backwards compatibility on Xbox One and Series consoles:

• Call of Duty 2
• Call of Duty 3
• Call of Duty 4: Modern Warfare
• Call of Duty: Advanced Warfare
• Call of Duty: Black Ops
• Call of Duty: Black Ops II
• Call of Duty: Ghosts
• Call of Duty: Modern Warfare 2
• Call of Duty: Modern Warfare 3
• Call of Duty: World at War

Notably, when Microsoft bought Bethesda, its backwards-compatible titles were enhanced with FPS Boost, so hopefully Activision’s titles will be similarly optimized.

Will this spell price increases on Game Pass?

It certainly won’t help. Microsoft didn’t spend $68.7 billion on Activision Blizzard out of charity, and Game Pass will be a key way the company intends to recoup that investment. 

Price increases have been signposted for a long time, which isn’t especially surprising considering the value the service offers. Earlier this month, prices rose from $9.99 to $10.99 for basic Game Pass, and from $14.99 to $16.99 Ultimate. 

Ultimately, it would be surprising if this was the last increase we saw and all that legacy Activision content will help justify the decision.

Will Call of Duty become an Xbox exclusive?

Microsoft swears not — and it’s had to make certain commitments to get past the regulatory hurdles that were in the way of the acquisition going ahead.

One concession is that Call of Duty will continue to be available on rival platforms for at least a decade, Microsoft says, which should take us onto the PS6 at least.

And throughout the takeover, Microsoft has been adamant that it wouldn’t make sense to cut off Sony. 

“As we’ve always said, any realistic modeling of the true cost of removing CoD from PlayStation players clearly demonstrates that there is absolutely no financial incentive for us to do so,” Rima Alaily, corporate vice president and deputy counsel for Microsoft told The Verge back in March. 

Indeed, it’s worth noting that Microsoft has continued to support Minecraft on other platforms since its purchase of Mojang.

All the same, Microsoft has made it clear that Starfield — the next big release coming from Bethesda — won’t be released on PS5. And that should make fans nervous for Activision properties going forward, even if Call of Duty has temporary protections in place.

Will Microsoft make a new Guitar Hero/Prototype/Tony Hawk’s/Starcraft?

While most outsiders believe that Microsoft was chiefly interested in Call of Duty — a series that always dominates the charts with every new release — Activision Blizzard isn’t short of iconic franchises, even if some have lain dormant for some time.

Here are the main franchises of both Activision and Blizzard:

Activision

• Call of Duty
• Crash Bandicoot
• Spyro
• Tony Hawk’s Pro Skater
• Prototype
• Guitar Hero (plus those spin-offs: DJ Hero and Band Hero)
• Candy Crush

Blizzard

• Diablo
• Warcraft
• Overwatch
• Starcraft
• Hearthstone

There are also plenty of long-forgotten IPs that could potentially be revived: think True Crime, Gun, King’s Quest and Blur.

Will Microsoft revive any of them? While nothing is guaranteed, Microsoft’s studios have form here: there were 16 years between Psychonauts and its sequel, while the 2020 revival of Battletoads came 26 years after its last outing in 1994.

Game Pass could prove a useful testbed here. If Microsoft republishes an old title via backward compatibility and it takes off, then that’s a good indicator that a franchise is ready for its return.

The FTC's case against Microsoft over its attempt to acquire Activision Blizzard has dredged up some juicy intel on Sony's successor to the PlayStation 5. Microsoft said the “expected starting period” of the next generation of game consoles, aka the next Xbox and PlayStation 6, is 2028. 

That's according to court documents made public this week, as reviewed by IGN, from the ongoing legal battle between Microsoft and the U.S. Federal Trade Commission regarding the massive $68.7 billion acquisition. That 2028 timeframe lines up with what we've heard of Sony's plans from court documents in the UK’s Competition and Markets Authority (CMA) review of the merger. Sony doesn't plan to release the PS6 until at least after 2027, the company indicated in documents submitted to the court last Fall.  

Sony's expressed concerns that a Microsoft-owned Activision Blizzard could turn the popular Call of Duty series into an Xbox exclusive. In documents released this week, Microsoft said, should the deal go through, it's committed to releasing Call of Duty games on PlayStation platforms for at least the next 10 years.

“This term would in any case go beyond the expected starting period of the next generation of consoles (in 2028),” Microsoft said. “Thus, Call of Duty will be published on successor PlayStation consoles should one be released during the term of the agreement. The agreement also would ensure that Call of Duty console games are offered on PlayStation at parity with Xbox.”

PS6: A long way to go

Given that the gaps between PlayStation consoles have been pretty consistent, this 2028 timeline tracks. Six years separated the original PlayStation and PS2, then another six before the PS3. The PS4 arrived seven years later in 2013, with the PS5 following in 2020. With that in mind, it's easy to see how a six- to eight-year gap for this console generation could be in the cards. 

Still unclear is whether we'll see another mid-cycle upgrade like PS4 Pro. But there's certainly plenty of demand for something akin to a PS5 Pro or PS5 Slim to materialize while the PS5 is still Sony's go-to console. 

It's hardly surprising that we'll still have a while to wait for the PlayStation 6. A lot of people have only just managed to pick up a PS5 console due to shortages and intermittent PS5 restocks.

For now, the PS6's launch will remain as mysterious as ever, so looks like we'll just have to wait patiently for more details to be confirmed. In the meantime, check out the best PS5 games and our PSVR 2 review to see if Sony's revamped VR headset is right for you. 

More to be revealed

Looking ahead, it's possible new details about the next console generation could emerge as Microsoft's legal saga continue. 

Its battle with the FTC initially kicked off in December. That's when the federal regulator announced plans to block Microsoft's planned acquisition of Activision Blizzard. Recently a federal court in California issued a temporary restraining order requested by the FTC that essentially puts the deal on hold for now.

This week's trial centered on the FTC's request for a preliminary injunction on Microsoft and Activision Blizzard. This would prevent the acquisition from moving forward until the FTC has finished reviewing its compliance with U.S. antitrust law.

An evidentiary hearing between Microsoft and the FTC is scheduled for August 2, opening up new opportunities for industry insider info to trickle down to the public. And hopefully more details about what to expect with the next console generation.  

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Microsoft is creating a dedicated mobile games platform, which could bring big-name games to an exclusive smartphone store and rival the likes of the App Store and Google Play on the gaming front. 

As reported by The Verge, Microsoft was recently asked to outline its intentions to acquire Activision Blizzard to the U.K.’s Competition and Marketing Authority (CMA). In response, Microsoft not only explained its “commitment to a future for gaming that expands beyond consoles," but also its ambitions to create a Xbox Mobile Platform. 

Microsoft said this would let it make "a next generation game store which operates across a range of devices, including mobile as a result of the addition of Activision Blizzard’s content" It added that by "building on Activision Blizzard’s existing communities of gamers, Xbox will seek to scale the Xbox Store to mobile, attracting gamers to a new Xbox Mobile Platform." 

As Microsoft mentioned, to rival the likes of Apple's App Store and the Google Play store, both of which are pretty much gaming platforms in their own right, it would need to attract and host big-names games. It's here where the Activision Blizzard acquisition could come into play. 

Candy Crush and Call of Duty could spearhead the Xbox Mobile Platform

Two of the world’s most popular mobile game franchises Candy Crush and Call of Duty: Mobile are owned by Activision Blizzard. By buying Activision Blizzard, Microsoft could not only get access to these mobile game, but also potentially exclude them from the App Store and Play store, thereby attracting people to the Xbox Mobile Platform.

“The transaction gives Microsoft a meaningful presence in mobile gaming. Mobile gaming revenues from the King division and titles such as Call of Duty: Mobile, as well as ancillary revenue, represented more than half of Activision Blizzard’s revenues in the first half of 2022," said Microsoft in the CMA response.

So what does this mean for you? Well, so far these plans appear to be at the early stages. But it could mean, and we're speculating here, that in the future access to some of the most popular mobile games will require using a dedicated Xbox store on smartphone and tablets. It could also see some Xbox games, likely those that don't require a lot of graphics power, ported onto smartphones and accessed via this Xbox store. For example, we could see Gears Tactics, Halo Wars, or the likes of the original Fable brought over to mobile gaming. 

There are hurdles to this ambition, most notably Apple doesn't let third-party app stores on iOS. So Microsoft could find it a challenge to bring the Xbox Mobile Platform to iPhones.

But one boon may be how Microsoft could more easily bring Fortnite back to Android, and perhaps iOS if Apple, Microsoft and Epic can reach an agreement. This could happen as after Epic Games took Apple to court, and Microsoft threw its support behind Epic, ending with Fortnite on Xbox Game Pass and allowing access to it via Xbox Cloud Gaming. So with such prior partnerships, we could see Fortnite then be offered as a direct download via the Xbox Mobile Platform.

Regardless of whether Microsoft's mobile gaming ambitions come to fruition, the Redmond company is still dedicated to on-the-move and handheld gaming, as seen by the relatively rapid support of Xbox Game Pass on the Steam Deck.

Update: Our Overwatch 2 review is live — and we think it is pretty good.

Overwatch 2 and its new battle pass have been making a lot of news recently. A combination of leaks and marketing material from Blizzard, as reported by our sister site PC Gamer, had fans in an uproar. Specifically, they were unhappy about the idea that they would need to progress through the battle pass to unlock certain playable heroes.

Since then, Blizzard has clarified quite a bit about the battle pass system. In a group interview recorded by PC Gamer, Blizzard VP Jon Spector stated that "regular players" should be able to attain the heroes locked within the battle pass. He and his team also laid out how much the Overwatch 2 battle pass will cost, how players of the original Overwatch can unlock certain heroes and other details about the upcoming game.

Now that we have some concrete information, it seems like an appropriate time to explain exactly how this feature will work in Overwatch 2. The original game was not free-to-play, and lacked a battle pass. So while the battle pass concept is familiar to Activision Blizzard fans, its implementation in this series is not.

Overwatch 2: What is a battle pass? 

Battle passes are basically a scorecard for progression within a game. As you progress, you unlock loot, such as character skins, weapons, etc. Usually, a battle pass has both a free track and a premium track, with the premium track costing either real-life currency or in-game currency to purchase. Typically, the in-game currency is tough to acquire without spending real money. So ultimately, if you want the premium battle pass, you’ll need to spend money at some point.

This feature has become more common in recent years, especially as more multiplayer games switch to free-to-play models. Prominent examples include Call of Duty: Warzone, which Activision Blizzard also publishes, as well as Fortnite, Halo Infinite and quite a few other games, besides.

Overwatch 2 battle pass: What’s included 

The free track of the battle pass for Overwatch 2's first season still includes a fair amount of content. Over the course of 80 tiers, players can unlock two Epics skins, one weapon charm, two souvenirs, one highlight intro and eight Prestige Tier titles. There are also 14 additional cosmetic items (emotes, victory poses, etc.) to unlock as you play through the game.

But, of course, the big-ticket item is unlocking Kiriko, the newest Overwatch hero. Players in the free track will need to make it to Tier 55 to unlock Kiriko, which Spector says should be reasonably attainable with regular play. In future seasons, completing Tier 55 will unlock either a hero or a map.

However, if you have the premium battle pass, then you'll automatically unlock the Tier 55 reward. As you go through the 80 tiers, you also get all the same rewards from the free track, but in greater volumes. The premium battle pass confers a Mythic skin, which is missing from the free track, and a 20% XP boost that will allow you to progress through the tiers faster.

Based on photos provided by Blizzard, the battle pass interface will appear mostly the same for both free and premium players. The only difference is that the rewards for many tiers will say “premium” and appear locked, unless you pay up. 

Overwatch 2 premium battle pass: Cost 

According to the group interview with Blizzard, each season’s premium battle pass costs $10 per season, or 1,000 Overwatch coins (the new in-game currency). Each season runs for nine weeks, so over the course of a calendar year, players will need to spend anywhere from $50-$60 to unlock all the premium battle passes.

There is another way to get the first season’s premium battle pass. For new players, or those looking to get some extra loot, you can buy the $40 Watchpoint Pack. This pack includes the premium battle pass, the original Overwatch game, 12 hero skins and 2,000 Overwatch Coins.

If you save those Overwatch coins, the $40 will actually get you three seasons' worth of premium battle passes, although those three seasons would cost only $30 à la carte. At that point, it becomes a question of whether you think the cosmetic skins and a few weeks of the current Overwatch game are worth the extra $10.

For current Overwatch players, you can’t get free access to the premium battle pass, but you can get its best perk. As long as you log into the game prior to the end of season 2, you get Kiriko instantly through the Founder's Pack. While it's not quite the same as getting the premium battle pass for free, it may save you some money in the short run.

Overwatch 2 battle pass: Outlook 

At this point, we have a good idea of what Blizzard will include in Overwatch 2's battle pass for both the free and premium tracks, at least for the first few seasons. Blizzard has said to expect similar rewards in seasons two and three.

Aside from locking heroes behind the battle pass structure — a controversial move that could shift how casual players approach the game — Overwatch 2’s battle pass does not reinvent the wheel. However, it may reinvent how Overwatch is fundamentally played. By potentially locking heroes behind a paywall, Overwatch 2 goes where Overwatch never did. Time will tell if this ultimately disadvantages players on the free track, or if free and premium players can equally enjoy the game.

If you love, and we mean really love Overwatch, check out the dating sim with how to play Loverwatch.

Update: An Activision spokesperson has reached out in response to the below article and said: "We have an exciting slate of premium and free-to-play Call of Duty experiences for this year, next year and beyond. Reports of anything otherwise are incorrect. We look forward to sharing more details when the time is right."

We’ve only recently learned that Call of Duty 2022 will be a Modern Warfare sequel, but news about Call of Duty 2023 is already leaking. It looks like next year will be a very unusual one for the long running shooter franchise as it could be the first year since 2005 that there isn’t a new mainline instalment. 

There has been murmuring that Call of Duty could take a year off for a while now, but Bloomberg’s Jason Schreier has claimed the decision is now final. Activision has reportedly decided that in 2023 it will not release a new entry in the Call of Duty franchise. This would mark the end of the franchise’s almost two decade run of annual releases. 

This decision reportedly comes in the wake of a “recent entry in the series failing to meet expectations.” The entry in question is almost certainly 2021’s Call of Duty Vanguard. The WWII shooter launched last November to a tepid reception and while sales data has been scarce the game sold 36% less at launch in the U.K. compared to 2020’s Call of Duty Black Ops Cold War. Perhaps a franchise rethink is on the horizon. 

According to Schreier’s report, “some executives believe [Activision is] introducing new versions too rapidly.” This is a sentiment that is often echoed by the Call of Duty community. Traditionally games in the franchise only receive a year of dedicated support, before focus is shifted to the next instalment. This has previously led to Call of Duty games being abandoned just as they’ve hit a sweet spot in terms of content and overall gameplay balance. 

Call of Duty games are made on a rotating cycle between three studios: Infinity Ward, Treyarch and Sledgehammer Games, although they often intermingle and assist each other as needed. Next year was due to be the turn of Treyarch who last led the development on Black Ops Cold War. 

In the wake of this news, the California-based development team will reportedly shift focus to a new free-to-play title that will release in 2023 to fill the void left by Call of Duty. It's not yet known if this unconfirmed online game will be set within the Call of Duty universe, or will be an entirely franchise. 

Despite this news, diehard Call of Duty fans don’t need to worry about what they’ll have to play in 2023. This year’s Call of Duty Modern Warfare sequel is highly likely to receive two years of support to tide players over, plus a new Warzone experience is already confirmed to launch in 2022. This follow-up to the wildly popular battle royale title will undoubtedly have a longtail and is sure to receive regular support throughout 2023 and beyond. 

While there will still be plenty of Call of Duty content next year even without a new mainline entry, the franchise potentially skipping 2023 is still big news. A new Call of Duty each year has become such a mainstay of the gaming release calendar you can set your watch by it. It’ll definitely feel a little strange if 2023 doesn't have a fresh Call of Duty to play, but some time off could be just what the franchise needs to recapture its spark. 

And if you fancy a change from Call of Duty there are some stellar shooting games you can play right now; Deathloop would be one of our immediate choices. But Apex Legends also offers some serious battle royale action, Doom Eternal is a rip-roaring run-and-gun game, and the PS5 exclusive third-person action, Returnal is well worth a look. 

You could soon be able to enjoy one of Activision Blizzard’s biggest franchises on your mobile device. During its recent 2021 financial results, the company revealed that it will put “all-new mobile Warcraft content into players' hands for the first time.”

Blizzard’s announcement gave an impression that the new mobile game will be unrelated to other games in the Warcraft franchise such as World of Warcraft and Warcraft 3. Nevertheless, it’s still unclear as to where the new game will be set and how it would connect to the larger universe. 

Alongside the new mobile project, Blizzard also shared that World of Warcraft reported strong engagement throughout 2021 and confirmed that its developers are working on “new experiences” in both WoW and Hearthstone. 

This upcoming Warcraft project won’t be Blizzard’s first venture into bringing one of its biggest franchises to mobile. In 2018, the company announced Diablo Immortal, an online MMO exclusive to mobile devices. Back then, the official confirmation drew a significant amount of criticism from disgruntled fans who at the time were expecting a reveal more akin to Diablo 2: Resurrected or the now-confirmed Diablo 4.

The majority of criticism towards Diablo Immortal has since subsided, particularly after early alpha and beta tests appeared to be well-received by fans. While this could be reassuring to both gamers and Blizzard itself, the jury is still out on whether the same sentiment would extend to the upcoming Warcraft mobile game.

Blizzard’s announcement on the future of Warcraft comes shortly after the company revealed its plans for a brand new survival game set in a “whole new universe”. The news came just days after tech giant Microsoft confirmed its intention to buy Activision Blizzard for $68.7 billion to beef up its Xbox Game Pass catalog.

According to Bloomberg, the acquisition deal is still subject to a pending investigation by the Federal Trade Commission. Whether or not the FTC will have grounds to prevent the merger or if the investigation is simply a formality remains to be seen, though gamers have already been discussing the pros and cons of the acquisition for weeks on end.

We’re going to need to wait for Blizzard to share more details on the new game before we can draw any conclusion, especially whether or not it could potentially contend with some of the best Android games and the best iOS games available.

Last week’s announcement that Microsoft plans to purchase Activision Blizzard in a deal worth $68.7 billion has raised plenty of questions, chief among them is the fate of the Call of Duty franchise on PlayStation. It looks like we might have some clarity on this matter and it's good news for PS5 owners. 

Sony had already laid out its stance, with a spokesperson saying: “We expect that Microsoft will abide by contractual agreements and continue to ensure Activision games are multiplatform” and it appears that Microsoft is happy to oblige in this case. Bloomberg reported that the upcoming slate of Call of Duty titles through 2023 will launch on PlayStation systems.

Bloomberg’s Jason Schreier confirmed on Twitter that even after the acquisition closes next year, a previously inked deal will ensure that Call of Duty 2022 (strongly rumored to be a sequel to 2019’s Modern Warfare reboot), Call of Duty 2023, and a sequel to free-to-play Battle Royale title Call of Duty: Warzone will all launch on the PS5, and potentially the PS4 as well. 

Microsoft has also confirmed in a recent blog post that it will continue to bring Call of Duty to PlayStation, beyond the terms of the existing agreement. So, at least for now, we can say that Call of Duty has a future on PlayStation. Whether some spin-off becomes an Xbox and PC exclusive remains to be seen. 

This mirrors the approach that Microsoft has taken since it acquired ZeniMax (parent company of Bethesda) in 2020. All contractural agreements signed pre-purchase are currently being honored. 

This resulted in Deathloop coming exclusively to PS5 last year, and the upcoming Ghostwire: Tokyo will also launch first on Sony’s next-gen system. However, these games are free to come to Xbox Series X after a period of one-year exclusivity on PS5. Not to mention, games not tied up in pre-existing deals such as Starfield will be Xbox exclusive. 

This latest development at least clears up the future of the Call of Duty franchise on PlayStation through until 2023. After that, things become a little murkier. There is a possibility that Microsoft will opt to make the series an Xbox exclusive. After all, Call of Duty is one of the biggest games series in the world, being able to deny its closest competitor access would be a serious boon for Xbox.

Of course, there is also an argument that Microsoft would benefit more from allowing future Call of Duty games on PlayStation. Microsoft would make money from each copy sold on PlayStation, while also making the games available via Xbox Game Pass. This strategy could definitely incentivize a few diehard PS5 players to make the switch to Xbox Series X. 

The future of Activision Blizzard titles on PlayStation definitely isn’t solidified, but at least in the foreseeable future, you’ll still be able to play Call of Duty on PS5. Our advice: enjoy it while it lasts. 

In a move that rocked the gaming world, Microsoft announced it will buy major publisher Activision Blizzard for a huge $68.7 billion; that’s the largest acquisition in the gaming industry ever. 

This follows in the footsteps of 2020’s move by Microsoft to buy Bethesda and all of its developers. So understandably, there have been murmurs that this could be bad for the gaming world, seeing PS5 and PS4 players left out on the cold as Microsoft bolsters the Xbox Series X and Xbox Series S with exclusive games. 

While I’m no business guru, I don’t think being bought by Microsoft is a bad thing for Activision Blizzard or a sign of an insipid monopoly building up inside the gaming industry. Rather, I feel there are some positive things here, and the deal could benefit gamers hugely. Let me tell you why. 

Update: We ponder the question of what does Microsoft’s Activision acquisition mean for gamers?

Xbox Game Pass becomes an even better deal  

It’s not original to say Xbox Game Pass is the best deal in gaming; for a flat fee you can get access to a seemingly ever-growing range of games. These stretch from generic shooters to intriguing indie games, as well as all of Xbox Game Studio’s first-party titles like Halo Infinite and Forza Horizon 5. 

With the Bethesda purchase, Microsoft added a suite of the developer's games to Game Pass. And it plans to do the same with Activision Blizzard's portfolio, meaning a range of Call of Duty games, Overwatch, Diablo and more are set to arrive on Game Pass, likely in 2023. 

When you add those up with games from Bethesda and a range of EA games, not least of all Mass Effect Legendary Edition, Game Pass becomes a killer service for pretty much any device that’ll support it. 

Affordable access to more games  

Not everyone can afford the $50 to $70 prices many games now command, let alone a $499 Xbox Series X. And that's especially true of nations not blessed with the wealth of the U.S. or Europe; affording one game a month could be quite the ask for some. 

But for roughly $10 a month, Xbox Game Pass provides access to a bounty of games, old and new, meaning you don’t even have to be a long-time Xbox gamer to play some of the best Xbox games over the space of twenty years. Blizzard has already announced development of a new survival game, one that's likely to be an Xbox and PC exclusive. That democratizes gaming and that's good for gamers from all walks of life. 

Sure, Microsoft could ramp up the price of Game Pass, as we’ve seen Netflix do by hiking prices. But I feel it’ll still be a bargain for what it’s offering: access to a load of games across multiple platforms, generations and publishers. 

Play console-quality games anywhere 

Building upon the accessibility point, expanding Xbox Game Pass also seems set to have the knock-on effect of making the likes of Overwatch, World of Warcraft and more available for anyone to play on pretty much any platform providing they have a decent internet connection, be it wired or 5G.  

That’s because with Xbox Game Pass Ultimate you don’t actually need an Xbox console to play a range of games, with cloud-powered game streaming piping the like of Gears 5 to the best phones and best Chromebooks.

With Xbox Series X restocks still tricky to pin down, being able to stream the latest and best Xbox Series X games to an Xbox One or another compatible device is brilliant. It means those who can’t get the latest console or afford to buy it, can still enjoy a fresh generation of gaming. This would also benefit PlayStation fans, as even if they don’t want to get an Xbox console they could still access Game Pass on a myriad of devices. 

Heck, even if you have all of the consoles, being able to stream modern games to a smartphone when you’re out and about is very slick; Microsoft has even worked on retrofitted touchscreen controls for some games. 

A purge of toxicity  

Activision Blizzard is currently embroiled in a U.S. lawsuit around the way it's treated its workers. And the company has come under a lot of scrutiny from allegedly creating a toxic work environment, especially onwards women. 

While the publisher isn't struggling too much financially, it’s no surprise that it’s not put out a stellar game for a while; unhappy workers rarely do good work. Prior to the acquisition announcement, Phil Spencer, Xbox boss and newly minted CEO of Microsoft Gaming, has been vocal against the behavior of Activision Blizzard as a company and its executive board. 

Due to the way acquisitions and publicly traded companies work, Microsoft can't come out and say exactly what will happen to Bobby Kotick, the CEO of Activision Blizzard and a man heavily involved in the publisher’s controversy. But the structure of the Microsoft Gaming division seems to make it clear that there's no room for two CEOs — meaning it's likely to be game over for Kotick. 

As a result, I’m optimistic that Microsoft will purge the toxic elements of Activision Blizzard and bring in a better working culture. After some initial slip ups with its early acquisitions of studios, like the now-defunct Lionhead, Microsoft seems to be a lot more savvy when it comes to letting studios define their own path yet supporting them financially. So a lot of Activision Blizzard’s studios and teams could find themselves with greater freedoms and a less challenging environment to work under. 

That could all make for better and more creative games rather than just another rote Call of Duty game. Spencer has said he’d like to see more of Activision Blizzard’s older games make a comeback in some form or another. So we could see a burst of creativity from the publisher’s developers; that's good for gaming. Evidence of this could be traced back to the likes of Obsidian being given the scope to work on Avowed or Double Fine being able to create Psychonauts 2, a game that may not have had the approval of a traditional publisher. 

Access to globe-spanning tech 

Microsoft might be deeply involved in gaming, but it’s a tech company first. And that means all the developers it has acquired could tap into the mass of technology Redmond has. Microsoft has the second-largest cloud platform that supports everything from streaming services to development tools and machine learning. 

As such, a developer who may have been on a cash-strapped budget and needing to purchase Azure cloud tools, would now have access to them. I can imagine games getting better AI thanks to Microsoft’s work on machine learning. Or having more stable servers thanks to the support of the Microsoft Cloud. 

Again, for gamers this is good as it could mean more innovative games that also look better and run better. These games could even be bundled into the new version of Windows; it might sound silly, but imagine if the next Windows 11 update came with Skyrim, as that game seems to be installed just about everywhere. 

I will caveat all the above, by saying I could be very naïve and be putting too much faith in a corporation I think has been a good entity over the past few years. And I’m sure some diehard PlayStation fans will balk at the deal. 

But of all the companies that could have bought Activision Blizzard, I think Microsoft is the right one. 

Sony has responded to the industry-altering news that Microsoft is set to acquire Activision Blizzard in a $68.7 billion deal, and PlayStation’s parent company seems fairly confident that the juggernaut Call of Duty series will remain on its platform. 

In an interview with the Wall Street Journal, a Sony spokesperson is quoted as saying, “We expect that Microsoft will abide by contractual agreements and continue to ensure Activision games are multiplatform.” It’s a short and snappy statement but it does clearly indicate that Sony expects future Call of Duty games to make their way to the PS5.

PlayStation has had an exclusive deal with the Call of Duty franchise since 2015’s Call of Duty Black Ops 3. This long-running agreement has seen PlayStation platforms receive exclusive content and early access to DLC packs. Deals of this nature are presumably what Sony means when it refers to Activision Blizzard’s “contractual agreements.” The current length of this agreement is now known to continue for three more years.

Well, in a recent blog post, Microsoft confirmed that Call of Duty will continue to find a home on PlayStation consoles, beyond the terms of the current agreement. 

Microsoft’s purchase of Activision Blizzard is expected to complete in 2023 and once it does the company will own franchises including CoD, Overwatch, Starcraft, Diablo, Crash Bandicoot, Sypro the Dragon and more. The deal has naturally raised questions about these popular franchises becoming exclusive to Xbox in the console space, but it appears that Sony is fairly relaxed on this potentially thorny issue, for now at least. 

When quizzed on exclusivity by Bloomberg, the CEO of Xbox, Phil Spencer, said: “I’ll just say to players out there who are playing Activision Blizzard games on Sony’s platform: It’s not our intent to pull communities away from that platform and we remained committed to that.”

On the surface, this sounds fairly promising for PlayStation gamers hoping to still enjoy Activision Blizzard titles on their platform of choice, but it should be noted Spencer made similar comments in the wake of Microsoft’s $7.5 billion purchase of ZeniMax (parent company of Bethesda) in 2020. However, last year, during E3 2021 it was revealed that Betheseda’s first original IP in 25 years, sci-fi RPG Starfield, will be exclusive to the Xbox Series X, Xbox One and PC. 

There is every possibility that Microsoft will see out the remainder of any contracts Activision Blizzard previously agreed with Sony and will then make the publisher's core franchises Xbox exclusive long-term. Although, this may not be the best strategy for Microsoft to adopt according to some industry analysts. 

David Cole, of DFC Intelligence, told GamesIndustry.biz that Microsoft making Call of Duty exclusive to Xbox could raise serious legal concerns. He said: “Regulators will take a close look and franchises like Call of Duty may not be exclusive to Xbox platforms because of antitrust concerns.”

Regardless of whether series like Call of Duty and Overwatch have a PlayStation future, we do know that “many Activision Blizzard games” will be coming to the Xbox Game Pass service once the deal completes per the official announcement post. This will be a huge boon for Microsoft’s gaming subscription service and could see the sizeable Call of Duty community shift towards playing on Xbox Series X, even if the games remain available on PS5. 

This massive acquisition has raised a lot of questions, and a fair amount of backlash from parties concerned about industry consolidation. In the short term, there appear to be several pros and a few cons to Microsoft's Activision Blizzard deal, but only time will tell if it is ultimately good for gaming as a whole. 

Update: We ponder the question of what does Microsoft’s Activision acquisition mean for gamers?

Earlier this week, Microsoft announced its acquisition of Activision Blizzard, the massive video game publisher responsible for Call of Duty, World of Warcraft, Candy Crush and many other beloved franchises. At $68.7 billion, it's the largest acquisition in tech history, beating out the $67 billion Dell-EMC deal from back in 2016.

This is on top of Microsoft’s $7.5 billion acquisition of ZeniMax Media back in 2020, which brought in The Elder Scrolls and Fallout, as well as its purchase of Minecraft for $2.5 billion back in 2014. Microsoft’s recent spending spree has completely upended the video game market, which could put Xbox Game Pass, the company’s game subscription service, in a position to shift game plans for both Sony and Nintendo. Not only that, there could be a larger metaverse play afoot.

Some video game fans may see Microsoft’s shrewd purchasing moves as desperation. The Xbox brand has never been able to amass the same library or cachet as Sony or Nintendo. As iconic as Master Chief is, he’s no Mario, Link or Nathan Drake. Sony and Nintendo slowly grew their portfolios of studios by investing in teams one by one, developing relationships and integrating external teams into their overarching umbrellas.

Microsoft, on the other hand, seems to have simply pulled out its checkbook and bought the biggest players in video game publishing. It’s the equivalent of the rich kid showing up to the go-kart race and winning because he bought the best pre-made parts.

According to Dr. Aswath Damodaran, professor of finance from NYU’s Stern School of Business in an email to Tom’s Guide, Microsoft’s acquisition isn't about raising Call of Duty prices, or forcing Sony and Nintendo out of the market. In reality, as big as Xbox is, it’s still "penny change" compared to Microsoft as a whole. For Damodaran, Microsoft has another major player in its sights.

"Technology markets are constantly changing and evolving, and getting a controlling market share against existing players gives you almost no advantage against newcomers and disruption," said Damodaran. "The real challenge to all three major gaming companies is Roblox and online gaming, and to be honest, only Microsoft seems to realize this. Sony is a dead man walking (in corporate life cycle parlance) and Nintendo is run by managers who are so old (or at least act old) that they have no connection to the people who use their systems."

If Damodaran’s take is true, then newly appointed Microsoft Gaming CEO Phil Spencer may be looking far beyond Xbox Series X versus PS5 unit sales. Instead, he may be considering the future of the games industry itself. New startups and metaverse pushes could threaten to unravel that future.

Microsoft swooped in at the perfect time

It’s also ideal timing for Microsoft to swoop in. Activision Blizzard has been caught in major regulatory labor controversy, linked to a crude company culture that led to widespread harassment, pay disparity and even a suicide. 

"Acquiring Activision will help jump start MSFT's broader gaming endeavors and ultimately its move into the metaverse with gaming the first monetization piece of the metaverse in our opinion," said managing director of equity research Dan Ives in a note published by Wedbush Securities. "With Activision's stock under heavy pressure (CEO related issues/overhang) over the last few months, MSFT viewed this as the window of opportunity to acquire a unique asset that can propel its consumer strategy forward." 

According to Ives, Microsoft has been laying low on the regulatory front, whereas Amazon, Apple and Google have seen increased scrutiny from lawmakers over antitrust actions. Per Ives, if any of the above companies tried to make a similar acquisition, it would lead to immediate pushback by government agencies. Microsoft CEO Satya Nadella saw an opening and struck. 

Still, Microsoft’s acquisition is surely raising eyebrows among regulators at the Federal Trade Commission (FTC) and the Department of Justice (DOJ). American media markets have already seen major consolidation, most notably with Disney’s acquisition of Marvel and Fox, giving the house of Mickey a major franchise advantage over the likes of Netflix and HBO. FTC Chair Lina Khan has already said the agency is going to make "rampant acquisition" a top priority for the agency.

"Given the ongoing merger surge, there is a real risk that markets will become only more consolidated absent our vigilance and assertive posture," Khan wrote in a memo.

Before, the FTC would look only at end-consumer benefit in regards to acquisition. If steel companies being consolidated meant lower prices for consumers, then the FTC would not see a problem. But big tech has been increasingly aggressive in buying up not only major players, but also smaller ones before they have a chance to compete. This practice gives outsized power to top players such as Google, Meta and Microsoft.

Many of these smaller acquisitions can fall under regulators' radars. According to Khan’s memo, the FTC will take a "holistic approach" in "identifying harms, recognizing that antitrust and consumer protection violations harm workers and independent businesses as well as consumers."

Already, government officials and regulators have subjected Facebook’s acquisition of WhatsApp and Instagram a few years back to increased scrutiny. This increased attention is directly linked to Meta’s expanded online scope around the world, ringing alarm bells within government agencies and human rights activists.

Right now, Meta is up against 48 antitrust lawsuits that aim to break up its various entities. Officials have accused Meta of integrating its acquired services too deeply, creating an illegal monopoly and engaging in anti-competitive behavior.

"Regulators could be concerned with Msft/Xbox becoming too dominant and if combined Co will take the IP exclusively to Xbox (which would lower the potential future rev) or some sort of hybrid implementation depending on the franchise," said Joel Kulina, head of technology and media trading and Wedbush Securities in an email interview with Tom’s Guide. Kulina went on to say that "picking up Activision would further strengthen Game Pass and get Microsoft much closer to Sony (SONY has won console wars in recent memory due to much stronger first-party content)."

It's all about the metaverse

Kulina also said that cloud and mobile gaming are the future and Microsoft’s Activision Blizzard acquisition strengthens its position in the metaverse immediately.

Gaming companies such as Epic Games already have a distinct advantage over Meta and its Oculus platform, thanks to years of game development. And considering that the metaverse is supposed to be a persistent online interactive ecosystem, decades of graphics development and online gameplay infrastructure give gaming companies a leg up.

"This would be a significant deal in making them [Microsoft] a bigger player in the metaverse. Which is still a theme clouded in hype but a lot of big companies are throwing a lot of money at it," said Kulina. "So going after RBLX 100% is an angle."

Kulina believes that both Sony and Nintendo will buttress its development to compete against Microsoft in this regard. Not only that, Kulina expects that Epic Games, Electronic Arts, CD Projekt, Ubisoft and Take-Two Interactive will also be looking for "dance partners." If Apple, Meta and Alphabet see Microsoft’s bullishness as a major threat in the metaverse play, then all three could become "willing buyers."

Could Disney buy Nintendo?

While it may seem absurd for Disney to acquire Nintendo, for example, or Alphabet to take up Sony, the justification of Fox’s $52 billion sale to Disney was that Fox could not compete with the likes of Netflix and Amazon. Those two companies in a span of two decades were able to amass a Scrooge McDuck-level of cash, and Fox chairman Rupert Murdoch felt that his company alone could not compete against them. It’s likely that MGM felt the same way when it sold itself to Amazon for $8.45 billion last year. And it’s why Quibi’s near-$2 billion bank account was too small to really compete against other streaming players. 

Already, antitrust lawyers feel that regulators will force Microsoft to change the terms of its acquisition. 

"There can be divestiture or other requests made by such regulatory agencies that make the deal look a bit different from what was announced today," said Richard Hoeg, a business attorney and YouTuber in an interview with GameSpot. 

Call of Duty exclusivity on Xbox and PC still uncertain

A deal of this magnitude will likely also bring in international regulators who are interested in ensuring fair competition. At the moment, it’s still too early to say if all Activision Blizzard properties will become exclusive to Xbox and PC. 

"Activision Blizzard games are enjoyed on a variety of platforms and we plan to continue to support those communities moving forward," said Microsoft Gaming CEO Phil Spencer in a press release. Of course, this seems to vary on a case-by-case basis. Whereas Minecraft is available across multiple platforms, the upcoming Bethesda title Starfield will be an Xbox and PC exclusive. And with Blizzard's announcement of a new survival game, that too will likely become an Xbox and PC-only title.

In a later interview with Bloomberg, Spencer did say "to players out there who are playing Activision Blizzard games on Sony’s platform: It’s not our intent to pull communities away from that platform and we [remain] committed to that." Of course, that commitment could change at a moment’s notice. 

PS5 vs. Xbox Series X unit sales don't matter anymore, only dominance

Now that gaming has entered the subscription service model, winners are defined not only by quality of content, but by quantity as well. That constant pull could mean increased prices for consumers. Netflix recently hiked prices, and it wouldn’t be too surprising if Disney Plus and HBO Max follow suit.

Xbox Game Pass remains the best deal in gaming, but throwing up each new Call of Duty on the service could potentially add costs to Xbox’s bottom line. Given Sony and Nintendo’s smaller portfolios, it’s unlikely that any subscription model from either company could offer the same value incentive, even as rumors suggest Sony is working on a Game Pass competitor codenamed Spartacus. Nintendo also currently offers a slew of classic titles with its online service, although the selection leaves a lot to be desired. Whether consumers decide to purchase games individually or opt for Xbox Game Pass, it could force Nintendo and Sony to adapt accordingly. 

In the early '90s, Sony suggested to Nintendo that both companies join forces to create one massive gaming company. Nintendo ultimately walked back on the deal, pushing Sony to go its own way. Given the recent shakeups at Microsoft, both Sony and Nintendo may be looking at new partners to stay afloat. Who knows? That Nintendo PlayStation might eventually become a thing. 

Update: We ponder the question of what does Microsoft’s Activision acquisition mean for gamers?

We’re only halfway through January, but the news that Microsoft is planning to buy Activision Blizzard in a $68.7 billion deal is certain to be one of the biggest gaming stories of the year. This out-of-the-blue acquisition could shift the entire industry in a major way. 

The internet is already rife with stunned reactions, wild speculation and some questionable hot takes. Take a quick glance at social media, and you’ll see everything from analysts feverishly forecasting to fanboys raging (or celebrating) the idea of Call of Duty and Overwatch becoming Xbox exclusives. 

According to an email sent to Activision Blizzard employees by embattled CEO Bobby Kotick, the deal should close sometime in Microsoft’s 2023 fiscal year, which ends on June 30, 2023. The deal has raised some anti-trust questions, but it’s likely to go through without significant delay. After all, companies as large as Microsoft aren’t in the habit of announcing purchases that aren't ironclad. 

The full ramifications of this eye-wateringly expensive acquisition won’t reveal themselves for several years to come. For now, though, we’re all trying to adjust to this new world in which Microsoft owns one of the biggest and most (in)famous publishers in the industry. 

As the dust starts to slowly settle, many skeptics are already asking if this landmark deal is ultimately a good thing for the industry as a whole, and for gamers themselves. We can’t definitively answer those questions quite yet. But here’s the impact we expect Microsoft’s purchase of Activision Blizzard to have in the coming years. 

Xbox is betting big on Game Pass 

Microsoft almost certainly has multiple reasons for purchasing Activision Blizzard. When a company spends almost $70 billion in a business transaction, it’s natural to assume its rationale is multifaceted. However, one thing this deal indicates is that Xbox Game Pass is very much the future of the brand. 

In fact, Xbox CEO Phil Spencer has wasted no time in confirming that Activision Blizzard titles will begin appearing on the popular subscription service as soon as possible. In the Xbox blog post announcing the deal, he said: “Upon close, we will offer as many Activision Blizzard games as we can within Xbox Game Pass and PC Game Pass, both new titles and games from Activision Blizzard’s incredible catalog.”

The service is now 25 million subscribers strong, and it’s clear that its reputation as arguably “the best deal in gaming” is set to stick around for the foreseeable future. Spencer also drops Xbox Cloud Gaming by name in the post, claiming the deal will allow the team to “accelerate” its cloud gaming plans. Expect Blizzard games, in particular, to make a real splash in this area. Titles such Hearthstone already have a dedicated mobile player base, which suits cloud gaming perfectly. 

It’s not unreasonable to speculate that the main driver of this purchase is Xbox’s continued need for content. Keeping a service like Xbox Game Pass freshly stocked requires a serious investment in new games. While third-party deals, such as the ones that brought Back 4 Blood or Outriders to Game Pass at launch, are useful, being able to consistently add original first-party content to your service is more sustainable in the long run. Blizzard's newly announced survival game will likely end up on the service as well. See Netflix’s continued investment in original content as a case in point.  

With this deal, Microsoft will be able to bring games in iconic franchises, such as Call of Duty, Overwatch, Diablo, StarCraft, Crash Bandicoot, Spyro, Tony Hawk's Pro Skater, World of Warcraft and Candy Crush to Xbox Game Pass as it sees fit. It practically goes without saying that Xbox being able to promote the latest Call of Duty installment, day one on Xbox Game Pass, at no additional cost, is a pretty powerful selling point for the service. 

A new way of thinking 

Under its current leadership, Activision Blizzard has an obsession with billion-dollar franchises. In fact, in 2021, Activision reverted Toys for Bob, the developer of the excellent Crash Bandicoot 4: It’s About Time, into a support studio for the free-to-play battle royale game Call of Duty Warzone.

The same trend has occurred across Activision Blizzard’s recent past, with midrange titles being ignored in favor of a seemingly all-consuming focus on its flagship series, such as Call of Duty. This acquisition could breathe new life into some currently neglected franchises. 

Microsoft has already demonstrated that it can allow first-party studios to work on smaller games, such as Double Fine’s Psychonauts 2. This approach could benefit some of the smaller franchises that Activision Blizzard owns. 

Don’t be surprised if Microsoft greenlights new entries in the Crash Bandicoot, Spyro the Dragon and Tony Hawk’s Pro Skater series. We wouldn't say no to another revival of Guitar Hero either. 

Robbing its rivals 

Of course, the most contentious point of this purchase is what it means for Xbox’s rivals in the gaming space, primarily PlayStation and Nintendo. Microsoft’s strong commitment to supporting PC gaming means that Activision Blizzard titles will continue to come out on PC. But the future of mega-franchises, such as Call of Duty and Overwatch on the PS5 and Nintendo Switch seems murkier. 

The first half of 2021 saw a similar debate after Microsoft's acquisition of $7.5 billion Bethesda. Many PlayStation gamers struggled to comprehend the idea of a world where the PS5 doesn’t receive The Elder Scrolls 6, Fallout 5 and Starfield. But over the summer at E3 2021 Microsoft confirmed that Bethesda's first original IP in 25 years would be coming exclusively to Xbox Series X, Xbox One and PC. 

Presumably, this will be the case for other Bethesda games in the future. (Although, curiously, Ghostwire Tokyo, the next game from Tango Gameworks, a Bethesda-owned studio, will be a timed exclusive on the PS5. This is due to a deal struck before Microsoft purchased Bethesda’s parent company ZeniMax.) A next-gen port of Skyrim also came out on the PS5 last November, suggesting that Bethesda hasn’t fully closed on the door on Sony's platforms just yet. 

It’s still too early to tell if Activision Blizzard will take the same tack, but it’s logical to suggest that Call of Duty 2023 being exclusive to Xbox could happen. Considering that the franchise is one of the biggest in gaming, and has had an exclusive marketing deal with Sony since 2015, this would be a fairly big blow to Sony.

It’s not an exaggeration to suggest that at least some PlayStation gamers could be tempted to switch over to Xbox if Microsoft's platform becomes the exclusive home of Call of Duty. At least PC-centric franchises, such as StarCraft and Warcraft, should continue without much disruption. 

Microsoft must fix Activision Blizzard's mess

It’s important to note that this acquisition comes with a fairly unsavory element as well. For months now, Activision Blizzard has been mired in controversy after the state of California opened a lawsuit against the company for being a “breeding ground for harassment." Some of the allegations against higher-ups within the publisher border on the unprintable, and CEO Bobby Kotick has received a torrent of criticism for his hand in creating a toxic work environment, for women in particular. 

The problems don’t end there, either. Employees at Raven, a development studio that works on the Call of Duty franchise, have recently staged a walk-out in protest against the mistreatment of quality assurance testers. It's fair to say there are a lot of practices within Activision Blizzard right now that the company needs to stop. 

All of these allegations are so serious that they have contributed to the company's share price falling a dramatic 27% over the past six months. Even so, Microsoft still purchased the company at a significantly higher share price than its current market value. 

Prominent figures from across the gaming industry have condemned the company culture at Activision Blizzard, including Xbox’s own Phil Spencer, and calls for Kotick to resign have been loud. For now, at least it seems that Kotick will continue to lead Activision Blizzard, though. A Microsoft PR confirmed to Bloomberg’s Jason Schreier that Kotick “will continue to serve as CEO…Once the deal closes, the Activision Blizzard business will report to Phil Spencer.”  

Some gamers are already pushing a narrative that Microsoft has stepped in to essentially save Activision Blizzard from itself. While this idea is perhaps a little fanciful (the acquisition is still a business decision first and foremost), Microsoft now has a serious duty of responsibility to help clean up the company’s act and restore Activision Blizzard's reputation. 

Spencer appears to acknowledge this in the acquisition announcement article. He said: “As a company, Microsoft is committed to our journey for inclusion in every aspect of gaming, among both employees and players. We’re looking forward to extending our culture of proactive inclusion to the great teams across Activision Blizzard.”

Is Microsoft finished for now?  

Throughout 2021, there were plenty of rumors swirling that Microsoft might be looking to scoop up another major player in the games industry. While most companies might take a break from purchasing after spending $7.5 billion (to purchase ZeniMax), it seems that Microsoft was just getting started. 

Microsoft's agreement to purchase Activision Blizzard is now the biggest acquisition in gaming history, and comes eight days after Take-Two Interactive purchased Zynga in what had been a record-breaking $12.7 billion deal. That record sure didn’t stand long. While the discussions about this deal will rage on for weeks to come, some analysts are already questioning if Microsoft is finished, at least for now. 

Internet whispers last year suggested that Microsoft might have been considering buying the likes of Warner Bros. Interactive Entertainment (although that deal would have been complicated, as Warner Bros. doesn’t own all of its IP). EA was another potential purchase.

Curiously, earlier this month, Xbox announced that upcoming co-op shooter Rainbow Six Extraction would be launching on Xbox Game Pass and that Ubisoft’s own subscription service, the creatively titled Ubisoft Plus, would come to Xbox platforms at some point in 2022. These deals might indicate a close relationship. Could the French publisher be Microsoft’s next target? 

Based on the time between the Bethseda purchase and the Activision Blizzard purchase, around 15 months, we can presume that another sizeable acquisition isn’t in the immediate pipeline. But after a deal like this, it’s hard to know where Microsoft will draw the line. 

It’s clear that Microsoft is very keen to invest significant money into its Xbox division. Don’t forget that Xbox Game Pass will continue to need a steady stream of compelling content to retain and grow its subscriber base. This could mean another significant investment in a major publisher — or perhaps Sony will strike back with an acquisition of its own. Only time will tell. 

Update: We ponder the question of what does Microsoft’s Activision acquisition mean for gamers?

Xbox Game Pass is already a killer gaming deal, but it could get even better. Microsoft announced today (Jan. 18) that it has agreed to buy Activision Blizzard for $68.7 billion. 

Seemingly not content with owning both Xbox Game Studios and Bethesda Softworks, along with all the latter’s studios, Microsoft now stands to add the creators of Call of Duty, Overwatch, Warcraft, Hearthstone, Tony Hawk and more to its gaming division. 

A closing date for the corporate transaction hasn’t been announced, and Activision Blizzard will remain an independent entity for the time being. But when it does get folded into the Microsoft family, Microsoft has big plans for the game publisher and its developers. 

“Upon close, we will offer as many Activision Blizzard games as we can within Xbox Game Pass and PC Game Pass, both new titles and games from Activision Blizzard’s incredible catalog," said Phil Spencer, CEO of Microsoft Gaming. "We also announced today that Game Pass now has more than 25 million subscribers. As always, we look forward to continuing to add more value and more great games to Game Pass.”  

“The fantastic franchises across Activision Blizzard will also accelerate our plans for Cloud Gaming, allowing more people in more places around the world to participate in the Xbox community using phones, tablets, laptops and other devices you already own," Spencer added. "Activision Blizzard games are enjoyed on a variety of platforms and we plan to continue to support those communities moving forward.” 

In short, that means Xbox fans and people with Xbox Game Pass Ultimate subscriptions should be able to play more games than ever pretty much anywhere there's a good internet connection. 

Xbox Cloud Gaming is already pretty impressive in that it allows game streaming to mobile devices as well as enabling the best Xbox Series X games to be played via the Xbox One, somewhat bypassing the annoyance of difficult-to-get Xbox Series X restocks.

While Activision Blizzard has been mired in controversy as of late, its ownership of some of the largest games around means this acquisition agreement comes as a surprise; we had not predicted it in our article exploring the potential for the Xbox Series X in 2022.

Additional details about the acquisition are thin on the ground, but we’ll aim to bring you more once further information comes to light. Whether the deal is ultimately a good thing for gamers is already being fiercely debated, but one thing is for sure, the gaming industry is about to be shaken up in a major way.