Activision buyout will help build Xbox metaverse, Microsoft says

Microsoft has said its $68.7 billion buyout of Activision-Blizzard will be used to 'provide the building blocks of the metaverse'

Published Jul 28, 2022 4:47 PM CDT   |   Updated Fri, Aug 19 2022 12:50 PM CDT
1 minute & 30 seconds read time

Microsoft will use Activision-Blizzard's arsenal of video games, developers, and network infrastructures to power the Xbox metaverse.

Activision buyout will help build Xbox metaverse, Microsoft says 32

The metaverse represents a big opportunity for billion-dollar monetization; imagine a digital interactive world that merges internet browsers, social media, and gaming platforms into one. It's a dream come true for companies like Microsoft, who make billions every year from advertisements, licenses, and video games.

This potential is why Microsoft is investing in the metaverse. Plans aren't concrete yet, but the company has confirmed it will use its $68.7 billion buyout of Activision-Blizzard to fuel its metaverse strategies. Microsoft also raised its R&D spend in gaming and cloud by $3.6 billion throughout Fiscal Year 2022.

"Activision Blizzard is a leader in game development and an interactive entertainment content publisher. The acquisition will accelerate the growth in our gaming business across mobile, PC, console, and cloud and will provide building blocks for the metaverse," Microsoft said in a new 10-K SEC filing.

Read Also: Phil Spencer's excellent Xbox metaverse rationale puts gamers first

The deal has been approved by both company's shareholders and Microsoft expects the deal to close by the end of FY2023 (if it remains unchallenged or blocked by the FTC), but that is a conservative estimate. The FTC could approve the deal in 2022. The approval process is under way now and Microsoft recently submitted required documents.

Activision buyout will help build Xbox metaverse, Microsoft says 6

Meanwhile, Microsoft has made a record $16.2 billion from Xbox gaming throughout FY22. The ecosystem of Xbox hardware, products, and services is thriving even without the metaverse.

Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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