After two years co-piloting the biggest acquisition in video game history past an onslaught of challenges, Xbox CEO
Microsoft, which owns the Xbox gaming system, closed its
It marks a career-defining moment for Spencer, who first joined Microsoft as an intern in 1988 and has helmed Xbox since 2014. After years of lagging behind rival Sony’s PlayStation, acquiring Activision's collection of popular game titles gives Microsoft a rare chance to catch up.
“His job really just starts today,” said analyst
And it marks the end of an era for
When the companies announced a planned merger in
That was just the start of Microsoft's challenges in bringing home the deal. After negotiations with Spencer faltered, top rival Sony brought its concerns about losing access to the Call of Duty franchise to regulators around the world. The strongest opposition came from
“Microsoft didn’t have a choice. If they wanted to be long-term competitive with Sony and the PlayStation platform, they need to have a much more robust content offering,” Luria said.
But, “in retrospect, they should have read the writing on the wall in terms of the difficulty of closing the deal,” Luria said. “They needed to do the deal to stay competitive, but knowing what they know now, they might have done it differently.”
A key moment came in June, when a federal judge weighed the
Microsoft’s success in integrating Activision's business is “not guaranteed, especially as its track record with acquisitions has been a mixed bag,” said George Jijiashvili, senior principal analyst at research and advisory firm Omdia. Last year, Microsoft spent
Microsoft's two key game launches this year from its Bethesda merger, Redfall and Starfield, have “been met with mixed reactions at best,” Jijiashvili said. "However, with globally popular game franchises such as Call of Duty now under its wing, the company is strategically much better positioned.”
Another challenge for Microsoft will be overcoming the workforce challenges that dogged Activision before the takeover.
As of late last year,
“It is a new day for workers at Activision Blizzard,” said CWA President
“Over two years ago, workers at Activision Blizzard’s studios captured the country’s attention through walkouts and other protests over discrimination, sexual harassment, pay inequity, and other issues they were facing on the job,”
In a Friday welcome email to Activision employees, Spencer said he wanted to “reiterate that we hold ourselves to a high bar in delivering the most inclusive and welcoming experiences for players, creators, and employees.”
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